General Accounting

What software and accounting method should I use for an Ecommerce business?

I am looking to start a website selling a podcast logo making service using Kartra web builder and sales funnels. I am first going to make an LLC. After that what is the best way to record my expenses and profits that come from this Ecommerce business selling services?

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Answer

  1. 12 Answers

    Hi there, congratulations on staring your business.
    There are two types of accounting method, cash and accrual.
    The simplest method is cash accounting which recognizes income when cash is received and recognizes expense when payments are made.
    Accrual accounting recognizes income when it is earned even though the cash may not have yet been received as long as certain conditions are met. Expenses are recognized when they are owed or due which many times is prior to the actual payment event.

    Most small businesses and ecommerce businesses use cash accounting. We’ve seen cases of when there’s a need to switch from cash accounting to accrual accounting at some point as your business evolves, here’s a previously answered question from an ecommerce seller that you can check out for reference: https://askexper.com/question/how-i-can-change-an-accounting-method-from-cash-to-accrual-for-amazon-seller/

    As for accounting softwares, check out this answer here: https://askexper.com/question/what-type-of-bookkeeping-software-should-i-use-for-my-business/

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