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Real Estate Accounting Basics – What to Track?

Real estate accounting is a complex and critical aspect of owning or managing a property. Accounting is an important part of any real estate business, as it is responsible for tracking income, expenses, and cash flow. Proper real estate accounting can help you stay on top of your finances, maximize profits, and avoid costly mistakes.

Significance Of Accounting In Real Estate Business

Significance Of Accounting In Real Estate Business
Significance Of Accounting In Real Estate Business

Accounting is a critical component of any successful business, and real estate businesses are no exception. Accounting helps businesses track their income and expenses, analyze their financial performance, and plan for the future. It ensures that businesses can stay profitable and make informed decisions. 

Real estate businesses, in particular, need accounting to properly manage the money they receive from buying and selling properties. Without proper accounting, a real estate business would not have the necessary insights to make sound financial decisions and stay profitable. 

Accounting helps real estate businesses keep track of their revenue and expenses, so they can accurately estimate their profits. It also helps them measure their financial performance by calculating their net income and return on investments. Accounting also gives businesses an understanding of their financial position and allows them to set and review their budgeting goals. 

Accounting also helps real estate businesses prepare for taxes and other fees. It provides businesses with the information needed to file accurate tax returns and understand their tax liabilities. Accounting also helps businesses track their expenses and ensure they are not overspending or underpaying taxes. 

Accounting also plays a critical role in helping real estate businesses manage their investments. It enables businesses to track their investments over time and accurately measure their performance. Accounting also helps businesses determine the best way to allocate resources and assess the potential risks of investments. 

Real estate businesses need accounting to stay profitable. Without the right accounting methods, businesses can easily make mistakes that can lead to Financial loss and damage to their reputation. Accounting can help businesses make sound decisions and maximize their profits. In short, accounting is essential for any real estate business to succeed and thrive. 

What To Track?

Real Estate Accounting Basics
Real Estate Accounting Basics

When it comes to real estate accounting, there are several important things to track. Below, we’ve outlined some of the basics so you can get started on the path to proper real estate accounting.

  • Income: 

It’s important to track all income generated from the property, including rents, fees, deposits, and other income. This will give you an accurate idea of how much revenue your property is generating and what your expenses are. 

  • Expenses: 

Keeping track of your expenses is essential to staying on budget and maximizing profits. It’s important to track all expenses related to the property, such as mortgage payments, utilities, maintenance, and repair costs. 

  • Cash Flow: 

Cash flow statements are a great way to track all of your cash flow, including income and expenses. This will give you a better idea of how much money is coming in and going out of your business. 

  • Taxes: 

Keeping track of your taxes is essential for staying compliant with state and federal regulations. It’s important to keep accurate records of all taxes that apply to your property, such as property taxes, income taxes, and capital gains taxes. 

  • Loans: 

If you are taking out a loan for your real estate investment, it’s important to track all payments and interest that you owe. This will help you stay on top of your finances and ensure that you’re making payments on time. 

These are just a few of the basics when it comes to real estate accounting. It’s important to stay on top of your finances to ensure that your business is running smoothly and maximizing profits. If you need help with real estate accounting, you should contact a qualified accountant or financial advisor. They will be able to give you advice and guidance on the best way to track your finances, as well as provide advice on how to maximize profits.

By following these basic principles, you can ensure that your real estate business is running smoothly and that you’re making the most of your investments. Hire Profit Jets for high-grade accounting and bookkeeping services. 

Amazon vs Shopify: Why You Need Both

The ecommerce industry is always changing, leaving businesses needing to keep pace with the latest trends and technologies. With the rising competition, it can be hard to decide which platform is the best for your business needs. Amazon and Shopify are two of the most popular ecommerce platforms, but how do you know which is the best fit for your business?

eCommerce is quickly becoming one of the most popular ways businesses sell their products and services. It’s incredibly efficient and cost-effective to reach new customers, increase sales, and boost brand awareness. Whether you’re just starting in eCommerce or an established business looking to expand your online presence, there’s a lot to consider when setting up an eCommerce business.

Before you get started, you will need to clearly understand your target market and what products and services you will be offering. And this will help you decide on the best platform for your business, as well as the most appropriate payment gateways, shipping providers, and other features.

Once your eCommerce business is set up, you will want to ensure you have a comprehensive marketing strategy to ensure your products and services reach the right audience. And this includes driving traffic to your store through search engine optimization (SEO), social media marketing, email marketing, and content marketing. You will also want to create a strong brand identity that resonates with your target customers, so they can easily recognize your products and services.

When it comes to payments, you will need to choose the right payment gateway for your business. And this will determine which payment methods you can accept and the fees you will incur. You will also need to consider the level of security your payment gateway provides and whether it meets the necessary standards.

Shipping is another critical aspect of setting up an eCommerce business. You will need to decide on the best shipping providers and rates and determine which countries you will ship to. Additionally, you will need to decide on a returns policy that clearly outlines the conditions for returning products and issuing refunds.

Finally, you will need a customer service plan to ensure your customers feel supported throughout their buying experience. And this includes providing prompt responses to inquiries, resolving customer issues quickly and efficiently, and providing helpful resources such as FAQs and product guides.

Setting up an eCommerce business is no easy task, but with a well-planned strategy and the right tools in place, you can create a successful online store that meets the needs of your customers and drives sales. Keep in mind that it takes time to build a successful eCommerce business, but with a bit of hard work and dedication, you can create a brand that stands out from the competition.

If you’re an ecommerce business owner, you’ve probably heard of Amazon and Shopify. Both are popular ecommerce platforms, and they offer various services to help you run your online business. But which one is right for you?

The answer is both. While you can use either platform to start and run your business, there are certain advantages to using both platforms. Here’s why you need both Amazon and Shopify for your online business.

1. Amazon Has a Much Larger Reach 

Amazon Has a Much Larger Reach
Amazon Has a Much Larger Reach

When it comes to online sales, Amazon is the undisputed heavyweight champion. With over 300 million active customers, Amazon’s reach is unparalleled. And this means that when you sell on Amazon, you have a much better chance of reaching more potential customers than if you were to only use Shopify. 

2. Shopify Offers More Control Over Your Store 

Shopify is a popular ecommerce platform that gives you more control over your store than Amazon. You can customize it to look and feel how you want and integrate it with other services, such as payment processors and shipping providers. And this makes it an ideal choice for business owners who want more control over their stores. 

3. Amazon Offers More Payment Options 

Amazon offers more payment options than Shopify does. And this is important for customers, as it means they can pay with their preferred payment method. It is especially important for international customers, as they may be unable to use the same payment options as customers in the US. 

4. Shopify Has Lower Transaction Fees 

Shopify Has Lower Transaction Fees
Shopify Has Lower Transaction Fees

Shopify has lower transaction fees than Amazon. It means that you can keep more of your profits, as you don’t have to pay Amazon’s higher fees. It makes it an attractive choice for business owners who want to keep more profits. 

5. Amazon Offers More Resources 

Amazon offers a variety of resources for business owners, such as Amazon Web Services, Amazon FBA, and Amazon Marketplace. These services can help you save time and manage your store more efficiently. Shopify offers some services, but Amazon has a much larger selection. 

No matter which platform you choose, using both Amazon and Shopify can benefit your online business. Using both platforms, you can reach a wider audience, customize your store, offer more payment options, keep more profits, and access more resources. If you want to maximize your business’ potential, it’s best to use both Amazon and Shopify.

Conclusion

Amazon vs Shopify
Amazon vs Shopify

Both Amazon and Shopify are excellent ecommerce platforms that offer unique advantages. Amazon is a powerful platform that provides a wide range of features and options for a successful online store. On the other hand, Shopify provides a more user-friendly and cost-effective solution for small businesses. Therefore, it is important to understand the benefits and drawbacks associated with each platform to determine which platform best suits your needs. Ultimately, having both Amazon and Shopify may be the best solution to ensure a successful ecommerce business. Contact Profit Jets for superior quality accounting and bookkeeping services. 

Controller vs CFO: Which One Do I Need?

The significance of financial management for a business cannot be overstated. Finance management is the cornerstone of any successful business; businesses need a sound financial foundation to operate. Finance management helps companies plan, budget and allocate resources effectively while providing a framework for making decisions that will positively affect the bottom line.

Effective finance management helps businesses identify and capitalize on opportunities, make well-informed decisions, and manage risks. It allows companies to accurately forecast their future financial needs and manage their cash flows to ensure that the company remains profitable and solvent. Finance management also ensures that the company can meet its obligations to its creditors, suppliers and employees.

Finance management is important for a business because it provides decision-making information. By properly evaluating the business’s financial performance, it is possible to identify areas of opportunity and opportunities for growth. This information can be used to create strategies and plans to ensure the business remains profitable.

Finance management also helps a business control costs and allocate resources efficiently. It allows companies to identify and reduce unnecessary expenses while at the same time maximizing returns. Good financial management helps ensure that the company’s financial position is sound and that its resources are used in the most efficient manner possible.

Finance management is also important for a business because it helps to ensure that the company can meet its legal and regulatory obligations. Companies must comply with all applicable laws and regulations, and finance management helps to ensure that all of these requirements are met.

Finally, finance management helps ensure that the company can attract and retain the best talent. As a result, finance management helps to ensure that the company can remain competitive in the marketplace.

In short, finance management is vital for any business to remain profitable and successful. Without sound financial management, a business will likely suffer from instability, high costs, and poor decision-making. As a result, businesses need to ensure that they have an effective financial management system. 

CFO Vs Controller

CFO Vs Controller
CFO Vs Controller

When running a business, several roles are essential to its success. One of these roles is the controller, and the other is the chief financial officer (CFO). Experienced professionals typically hold both positions with a deep understanding of financial matters. Still, differences between the two must be considered when deciding which one to hire.

The controller is primarily responsible for managing the company’s day-to-day financial operations. And this includes managing the accounting system, ensuring accuracy in the financial information reported and providing financial advice to the CEO and other executives. The controller also typically has the authority to approve or reject transactions within the company.

On the other hand, a CFO is responsible for the more strategic aspects of the company’s financial operations. The CFO will typically develop budgets, forecast expenses and revenues, and craft strategies to meet the company’s financial objectives. The CFO will also typically have authority over a company’s investments, such as deciding whether to buy new property or sell current assets.

When deciding between a controller and a CFO, the business’s size and complexity should be considered. For smaller businesses, the controller may be sufficient. However, for larger companies, the CFO may be more appropriate for managing the company’s finances properly.

In addition, the experience and qualifications of the individual should be considered. Controllers typically have a background in accounting and finance, while CFOs may come from other professional backgrounds, such as business, law or economics. The CFO will often have a higher decision-making authority than the controller, so it is important to ensure that the individual chosen for the role is qualified.

Finally, the cost of hiring a controller or a CFO should be considered. Both roles come with a significant salary, so it is important to ensure that the budget can accommodate the cost. It is also important to consider the impact that hiring for either position will have on the company’s operations and the company’s bottom line.

Summary

CFO or Controller
CFO or Controller

Overall, when deciding between a controller and a CFO, the size, complexity, experience and qualifications of the individual, as well as the cost, should all be considered. A business can benefit from a professionally managed financial operation with the right individual in the role. Contact Profit Jets for superior-grade accounting, bookkeeping and other financial consulting services. 

Creating a Business Budget: What Do You Need To Know?

No matter what domain of business you launch, one of the major prerequisites that you always have to focus on is none other than the budget. The major mistake that a lot of businesses make in this case is that they overlook this factor and then end up making grave mistakes that are not at all desirable. 

Today we will be giving you a prospective look into the factors you need to keep in mind while creating a budget and how you can formulate the best one. It is obvious that depending on every business’s need, there will be a rapid shift in the model as well. However, there are some basic factors you cannot compromise on, and this is what we will aid you in this discussion.

In case you think that there is not much information that you have in this domain and you could do with some extra help, we are here at Profit Jets to guide you through the process and give you a better understanding of the same. 

The Budget Planning of a Business:

The Budget Planning of a Business
The Budget Planning of a Business

Not many business owners know this, but when you are starting your business, the first thing that you need to do is create a business plan which fits the industry. Once you are done with that, you can shift your purview. The right business budget is known to help you grow exponentially and have a better impact on the revenue system of your business as well. In this discussion, we will try to help you create the perfect business plan with the help of a seven-step model, which is indeed extremely promising. 

Seven-Step Model To Plan the Best Business Budget This Year:

Seven-Step Model To Plan the Best Business Budget This Year
Seven-Step Model To Plan the Best Business Budget This Year

The business budget prerequisites tend to change depending on the implications every year. The seven-step model you can choose to follow this year includes the following.

1. Understand The Costing:

The first thing you need to do is have a good idea about the cost of the production. Irrespective of your business, there will be some raw materials you need and a lot of other factors like logistics. Based on that, you can formulate your business’s cost in due course. 

2. Negotiation of Cost With Supplier:

When you start your business, it is obvious that there will be a lot of inhibitions, and you might not have a complete idea about the field. Hence the supplier is bound to give you estimates which are often much more than the desired amount. Remember to negotiate with them and set a promising budget that can aid you.

3. Assuming the Tentative Revenue:

The next step you need to take up in this respect is to ensure that you have a good idea about your tentative revenue model. It will help you better draw references, and consequently, you will have a better grip on how to plan your budget! 

4. Calculate the Gross Profit :

When it comes to building a budget, the next thing that you need to do is calculate the gross profit. The major difference between the tentative revenue and the cross profit is your entire sales figure, while the latter is the amount of money you earn after making all the payments. 

5. Cash Flow Projection:

For those who do not know, that is usually to different scenarios regarding cash flow projection. The first is the payment you receive from the clients, and the next is the payment you need to make to the suppliers or vendors. To ensure that the financial condition is up to the mark, you need to have parity between these models, and only then can it be promising as a budget. 

6. Understand The Market Based Trends and Dips:

When venturing into the market, the next thing that you need to do is have a good idea about the market-based dips. Why is it important? It will help you to understand the market dips and, in due course, make sure that you can make the right investments. 

7. Have An Expenditure Goal:

And finally, the last thing that you need to build up effectively is none other than the expenditure goal. This goal will direct you to make the correct payments and make expenditures and revenue goals based on the same.

For the most amazing business budget venture, you only need to get in touch with us at Profit Jets, and we will aid you

What Is A Profit and Loss Statement Meant To Show A Small Business Owner?

As a small business owner, when you are just starting your venture, we believe that it is crucial to make sure that you have a complete idea about how to proceed with the process. Not only that, as a small business, there are often a lot of steps about which many of us do not have much idea, and hence we are here to give you better ideas on the same.

 Today we will discuss the significance of the profit and loss statement and how it can have an implied meaning for business owners. In this case, we are talking about the significance of the same, specifically for small business owners. Remember that profit and loss statements are exceptionally important for a small business owner, so knowing both domains is essential. 

What Is A Profit And Loss Statement?

What Is A Profit And Loss Statement
What Is A Profit And Loss Statement

A profit and loss statement or the PL statement can give you a good understanding of your company’s accounts. The PL statement is a very important requirement; hence, as a small business, you need to be extra careful, which can give you a good understanding of the basic intricacies. It shows you the revenue a business generates along with various other factors like expenses, costs, and the income you have made over a specific period of time. The profit and loss statement, as you can make out from the name itself, is a complete understanding of the profit and loss you make over time. 

The business owner can use the PL statement and understand the current scenario of the business and whether any new initiatives need to be taken up. Not only that, a PL statement can help you analyze whether you need to cut on the revenues and, if so, by how much. To prepare the PL statement of any business, there are a few documents you need to get hold of, which can aid you through the process.

How Can You Prepare The Profit and Loss Statement of Your Small Business?

How Can You Prepare The Profit and Loss Statement of Your Small Business
How Can You Prepare The Profit and Loss Statement of Your Small Business

To prepare the profit and love statement of your small business, you need to include the total income, the cost of the goods that you are selling, and the total cost you have incurred. As a business owner, you have an idea about all three factors, which will give you a better understanding of your profit and loss statement. Along with these three factors, that is another issue when creating a profit and loss statement, and this is none other than the net income.

If you want to create a strategic yet easy PL statement, then the only thing that you need to do is make a chart and then divide the four segments in a more precise fashion. Whenever you start creating your profit and loss statements, try to initiate the same with the income you have generated and then make the required deductions. 

Which Are the Other Factors That Will Decide the Profit And Loss Statement of Your Business?

Which Are the Other Factors That Will Decide the Profit And Loss Statement of Your Business
Which Are the Other Factors That Will Decide the Profit And Loss Statement of Your Business

When creating the PL statement for your business, you must incorporate the five domains we have just mentioned in the above section. However, at the same time, there are some other factors that you need to consider, and all of them hold equal importance when it comes to making your statement. Some of the most common domains that you might need to incorporate in this discussion are none other than:

  • Depreciation Value
  • Financial Costs and Gains that you have incurred.
  • Extraordinary Gains or Costs That You Might Have Made.

If you are a small business owner, in most cases, it is completely your onus to make sure that you create the perfect PL statement, which can give you a crystal clear idea about the current standing of your business. If you think you do not have enough time or resources to generate the PL statement you can use to take help, we suggest you go forward with outsourcing options. It gives you the best statement and, at the same time, the same amount of money and resources, which is very important for you to focus on as a small business.

Summary

Profit and Loss Statement
Profit and Loss Statement

If you need help with the profit and loss statement, feel free to contact us at Profit Jets, and we will give you the most comprehensive and easy-to-understand profit-loss statement.

6 Effective Techniques To Improving Your Data Entry Process

For any business, be it large scale or small scale, one of the most important requirements is none other than efficient data entry. It is primarily because data entry is a process which helps you keep a complete tab and, in the process, ensures that you can easily access data whenever required. But how can you take care of data entry in a much more promising way, and are there any tips that guarantee more efficiency? 

Today we are here with the top 6 ways which can help you with the most efficient techniques when it comes to data entry, and you can even incorporate these in a much more sustainable way. If you think you need more help with this particular topic, you can contact professional service providers like us at Profit Jets, and we are here to help you with complete proficiency. 

Six Top Ways To Improve Your Data Entry:

Six Top Ways To Improve Your Data Entry
Six Top Ways To Improve Your Data Entry

The top 6 ways with which you can effectively choose to improve your methods of data entry include:

1. Audit and Give Maximum Importance to Your Data:

There are no confusions that data entry is time-consuming, and hence sometimes, there can be monotony. Because of this, you need to ensure that only that data enters the sheet, which is essentially important and can lead to fruitful utilization of the data entry process. Make sure that you strictly audit the data and at the same time give uber importance to the data which you can use, and it seems to be very important for your business functioning. 

2. Completely Standardize the Data Entry Process:

If you have a lot of data entry workers who are constantly working and ensuring that the data entry process does not stop, it is important to ensure that you standardize the process. Why so? Once you standardize the data entry process, it will ensure that you get the results your company maintains. 

Not only that, when there is a standardized process, every working employee will follow the same process and consequently, it will render a unified data entry layout. It is particularly important when you have a very complicated data entry procedure going on, and there are a lot of people who are involved. 

3. Focus On Outsourcing:

Sometimes as a business, we take up a lot of burdens and then end up exhausting ourselves. As with any business, this is something that you should never do and always invest your energy in the right place where it can generate revenue.

Because of this, we will always tell you to focus on outsourcing whenever the demand goes that it will get out of your hand. With professional experience, you will be able to have the best data entry process, and it can help you in the long run to achieve more. 

4. Automation Can Be Promising:

Keeping the complete data entry process manual is often detrimental and can lead to more confusion and even difficulty in retrieval. Because of this, we will always suggest you depend on automation whenever you can. Not only will it help you with better data entry, but at the same time, it will save you a lot of time and resources, which you can invest in other ways. Many businesses do not know this, but automation is surely the future, and the earlier you get it, it will automatically be better for you. 

5. Keep On Evaluating Regularly:

The next thing that you need to do is make sure that you evaluate and scrutinize daily. We have seen that a lot of businesses do not give enough importance to the regularity of data entry and treat it in bulk with a lot of time intervals. It is something you should not do at all, and hence the process should be continuous. The ideal way to go about this process is to evaluate your data entry regularly and not let it pile up. 

6. Prevent the Defects:

And finally, the last thing that you need to do for sure when it comes to effective data entry is make sure that you look out for defects as well. Here you need to strategically ensure that the impetus of committing an error is minimized to get better results.

Summary

Effective Techniques
Effective Techniques

If you think you need professional help with data entry, then we are here at Profit Jets to guide you. Get in touch with us for the best resources! 

Top 5 Accounts Payable Challenges And How Automation Can Help?

Managing accounts payable is a complex task, and the challenges that come with it can be overwhelming. From making sure all invoices are paid on time to ensuring proper compliance with accounting standards, accounts payable departments must juggle a number of competing demands.

Here are the top five accounts payable challenges and how to manage them.

1. Poor Visibility into Accounts Payable Processes

Accounts payable teams often struggle to gain visibility into the entire process. Without a complete view of all invoices, payments, and related documents, it’s impossible to ensure timely payments and accurate record-keeping. To overcome this challenge accounts payable teams should look to deploy automated accounts payable software to gain real-time visibility into all accounts payable processes.

2. Manual Processes

Manual processes are time-consuming and prone to errors. From manual data entry to manual payments, manual processes can cause delays and add extra costs to the accounts payable process. To combat this challenge accounts payable departments should look to automate their processes as much as possible. Automated accounts payable software can help streamline manual processes, providing increased efficiency and accuracy.

3. Lack of Compliance with Accounting Standards

Accounts payable teams must ensure that all payments are compliant with the relevant accounting standards and regulations. Without proper compliance, accounts payable departments could find themselves facing hefty fines and penalties. To overcome this challenge accounts payable teams should look to deploy automated accounts payable software that ensures compliance with all relevant standards and regulations.

4. Lack of Visibility into Cash Flow

Without visibility into their cash flow, accounts payable teams can’t accurately forecast when payments must be made. This lack of visibility can lead to cash flow issues and late payments. To combat this challenge accounts payable teams should deploy automated accounts payable software that enables them to gain real-time visibility into their cash flow.

5. Inefficient Payment Methods

Inefficient payment methods can lead to delays and increased expenses. From manual payments to paper checks, inefficient payment methods can add additional costs to the accounts payable process. To overcome this challenge accounts payable teams should look to deploy automated accounts payable software that enables them to make payments electronically.

Managing accounts payable is a complex and challenging task, but with the right tools and processes in place, it’s possible to overcome the top five accounts payable challenges. By deploying automated accounts payable software, accounts payable teams can gain increased visibility into their cash flow, streamline manual processes, ensure compliance with accounting standards, and make payments electronically. With the right tools and processes in place, accounts payable teams can manage their accounts payable processes more efficiently and accurately.

How Does Automation Help In Accounts Payable Challenges?

How Does Automation Help In Accounts Payable Challenges
How Does Automation Help In Accounts Payable Challenges

Accounts payable challenges can be tedious and time-consuming for any business, especially those with a high volume of invoices. But there is a way to make the process easier: Automation. Automation has become a critical step in streamlining the accounts payable process, making it more efficient and cost-effective.

With automation, businesses can save a significant amount of time and energy when it comes to manual accounts payable tasks. Automation can help businesses reduce costs, improve accuracy and make sure that the process is both compliant and secure.

Here are some of the top ways in which automation can help businesses address their accounts payable challenges:

1. Automated Invoice Processing: 

Automating the process of processing incoming invoices can help businesses save time and money. Automation can eliminate the need to manually enter invoice information into the system, which can significantly reduce the likelihood of errors. Automation can also help businesses accurately set up payments, ensuring that invoices are paid on time and in full.

2. Automated Payment Processing: 

Automation can also help businesses simplify their payment processes. Automated payment processing can identify duplicate payments, reduce manual payments, and ensure that payments are made accurately and on time. Automated payment processing can also help businesses reduce their payment processing fees.

3. Automated Auditing: 

Automation can also help businesses streamline their accounts payable auditing process. Automated auditing can help businesses identify errors in the accounts payable process and make sure that payments are made in the correct amounts and in a timely manner. Automated auditing can also help businesses stay in compliance with regulatory requirements.

4. Automated Reporting: 

Automation can also help businesses generate timely, accurate accounts payable reports. Automated reporting can provide businesses with detailed insights into their accounts payable process, helping them identify areas of improvement and ensure that all payments are made in a timely and accurate manner.

Summary

Accounts Payable Challenges
Accounts Payable Challenges

Automation can be a powerful tool to help businesses streamline their accounts payable process, reduce costs, and ensure accuracy in the process. Automation can also help businesses stay compliant with regulatory requirements and make sure that payments are made on time. Automation is an invaluable tool for businesses looking to reduce inefficiencies in the accounts payable process.

Accounting for Amazon Sellers 

Amazon.com is an advanced marketplace equipped with all the tools that attract billions of visitors every month which helps new sellers to make a serious profit. Although it sounds pretty easy and lucrative to make money on Amazon, the road is quite difficult, and Amazon accounting is one of the most complex things to do. Here in this article, we will guide you about Amazon accounting. This guide is an introduction to starting your accounting for Amazon. It will tap all the crucial areas related to Amazon Accounting. So let us start from here. 

Why Must Professionals Do Accounting for Amazon sellers? 

Why Must Professionals Do Accounting for Amazon sellers
Why Must Professionals Do Accounting for Amazon sellers

Typical accounting is not lost in the case of an amazon seller, but in reality, accounting for an amazon seller is way more challenging than the normal accounting process. So if you are looking forward to becoming an amazon seller, then all you need is an in-depth base on accounting. Sound knowledge of accounting is essential to make any correct decision. But not to worry, you can focus more on making more money and leaving the pressure of accounting on Profit Jets. With their assistance in accounting services, you are about to develop a strong backbone for your business. 

Many small or large businesses are entering the online market via Amazon. Still, only a few can survive and earn decent revenue because of the help of accurate bookkeeping and accounting. A business might think of it as just a regular professional activity. But it is much more complex. Furthermore, the impact of inaccurate financial data, the uncertainty of revenue generation on your business, wrong decisions and policies, non-compliances with taxes such as Service & Sales tax, etc., and most importantly, the credibility of your business. This is a fact that no business can grow without finance; it’s like a heartbeat for any business enterprise. Thus it requires essential financial management, which is impossible without accounting. 

Vital Accounting Areas For Amazon Seller 

Vital Accounting Areas For Amazon Seller
Vital Accounting Areas For Amazon Seller

Generally, every company and business house has components that create an essential part of their books of accounts; the same goes for Amazon sellers. But the areas where you face the maximum issues are sales data, sales tax compliance, inventory, and COGS. Let us understand how these crucial portions can be managed.

Accurate sales information recording is an essential part of regular activity to determine the profit percentage accurately. You receive payments from amazon every two weeks. Small business enterprises and in-house bookkeepers will likely record the whole amount as sales. 

But is it truly sales? No, because other activities are also associated, such as fees for FBA, warehouse fees, sales tax, shipping charges, returns, etc. The total amount deposited is net of all these activities on the date of receipt. 

Therefore proper classification is required to gain hold of the true profit. Still, if you are thinking of solving the issues on your own or manually, you will disrupt large sets of data about amazon selling and other valuables. Instead, we can be a great help. Professionals in the accounting of this process known as A2X. It establishes a connection between the amazon seller account with accounting software. It will regularly update by itself, and you can stay free from daily hassles. 

COGS or Inventory and Cost of Goods Sold is an essential part of the proper recording of inventories and COGS items according to the rule of accountancy is crucial unless you make an end with a loss according to books despite the revenue earned. Professionals with expertise in A2X can update the COGS and inventory information regularly. Integration of skilled professionals can streamline the whole accounting process. 

Sales tax Compliances 

Sales tax Compliances
Sales tax Compliances

The e-commerce platform is complex; there are various laws of regulations and Nexus to understand and follow, click-through, FBA nexus, and Nexus to determine your tax liabilities. So getting the assistance of professionals with expertise in these fields is always recommended. 

The Conclusion 

Amazon Sellers
Amazon Sellers

A professional in Amazon accounting uses various advanced tools like the Sales Tax analytics tool, which shows your sales tax spectrum. It connects with Amazon seller accounts and gives detailed information about your Nexus as per the state’s taxes. Besides sales tax, they can assist you in every step so that, as a seller, you can only focus on earning profit. 

Profit Jets is a reputed service provider of accounting and bookkeeping services. We offer you the best rates in the industry for professional and reliable services. Connect with us today to discuss your accounting requirement for an Amazon seller account, and we will ensure you the best quality service. Call us today to learn more about our services. 

Accounts Receivable Challenges and How Automation Helps

Managing cash flow in the business is essential, and account receivable is vital to ensure regular cash flow. Account receivable comes with business credit sales and is one of the long and complex processes that must be taken care of accurately. Account receivable challenges are common to any business, but you must follow certain steps to overcome them. 

Either a company can go for account receivable service providers to ensure that account receivable processes are streamlined or hire an in-house expert to manage the whole. But whether you are looking forward to having an in-house expert or an outsourced firm, using automation to streamline the entire process is advisable.

Automation is an advanced way to solve any critical issue, and these days it has been used widely in every sector. With the introduction of automation in the business world, the whole system has become more streamlined. Needless to say, automation is a wonder in the business world, replacing human resources with digital resources. The biggest advantage of automation is that it frees humans to focus on areas where human help is inevitable.

What Do You Mean By Accounts Receivable?

What Do You Mean By Accounts Receivable
What Do You Mean By Accounts Receivable

In layman’s terms, account receivable means the total amount a customer has yet to pay to a business in exchange for the goods or services they have taken. It is a credit purchase that the customers make and comes under the current assets section in the balance sheet. It is a complete payment cycle that starts from the sale to the customer and ends with the amount received from the customer. However it sounds simple, but it is a very complex and lengthy procedure. It needs to be updated daily by step-by-step procedures from tracking for payment to keeping records of the debts and payments.

Therefore this complex process requires thorough guidance and regular maintenance. Earlier the entire process of account receivable was done by humans only, but manual working is always susceptible to errors. But these days, with the introduction of automation, accounts are maintained by accounting software and ERP. Even account receivable service providers use this software to streamline the entire process and ensure a regular cash flow. As it is an important process, it needs to be maintained diligently. So in this article, we will discuss the company’s challenges and see how automation can ease them.

The Major Account Receivable Challenges

The Major Account Receivable Challenges
The Major Account Receivable Challenges

Here we have sorted out some major accounts receivable challenges that most organizations face.

  • Bad Accounts Receivable Data

Bad data is one of the biggest challenges in business in the case of accounting for accounts receivable. It is caused due to many reasons, such as missing bills, inaccurate recording, etc. This issue usually becomes more adverse when the business uses manual processing or inefficient employees.

  • High-risk customers

Checking the customer’s creditworthiness is difficult and must be done carefully. Once a business confirms credit sales, it must check the customer’s creditworthiness before confirming the sales only to ensure they can pay in the coming days. If this entire process is properly managed, it can lead to bad debts. Customers with previous bad credit records are always considered high risk for the business.

  • Poor reporting 

Poor reporting is one of the root causes of financial analysis, budgeting, and forecasting issues. When the data is recorded inaccurately, invoices are missing, and bills are left unattended, it leads to wrong cash flow and financial statements, resulting in poor reporting and bad decision-making. Furthermore, poor reporting disrupts the entire process of the financial system of an organization and can not give proper data at the end of the financial year. So a business fails to understand its shortcomings.

  • Incorrect payment allocation

Incorrect payment allocation is another vital challenge. It means the incorrect posting of the payments received by the customers. The wrong transaction records disrupt the entire financial statement. It also results in inaccurate cash flow collection and ultimately causes major losses.

The Conclusion

Accounts Receivable Challenges
Accounts Receivable Challenges

Once credit sales are made, bills must be issued immediately, and due dates are set. The business must start making follow-ups with the customers, and an automation system can remind them of payments automatically. Besides, that automation can ensure 100% accuracy without any manual error. Get in touch with Profit Jets for high-quality accounting and financial consulting services. We have a dedicated team of professional accountants who work specifically to manage all the accounting and bookkeeping tasks of your company. Connect with us today to learn more about our services and also get a rate quote for the same. 

What Is Digital Accounting? 

With the introduction of digitalization in business and commerce, the entire financial world has been transformed into a better and more organized format. Earlier entrepreneurs and business owners needed to depend on accountants to process vital financial data manually. And we all know that manual data is always susceptible to human errors. Therefore the idea of automatic digital accounting comes into play. It minimizes human errors and streamlines the entire financial process, making it easy, hassle-free, and less time-consuming. It also ensures complete accuracy as no manual involvement is required, and it can solve any complex issues easily. 

What Does Digital Accounting Mean?

What Does Digital Accounting Mean
What Does Digital Accounting Mean

Digital accounting is the most advanced form of accounting that refers to the creation, representation, sorting, and transfer of important financial data into an electronic format. Instead of using piles of paper, all accounting transactions and files are conducted in a digital environment. The concept first surfaced in 2003 and then slowly took the next step: digital bookkeeping in 2009. The best part is that digital accounting will not eliminate the role of an accountant; rather, it will add more value and streamline the entire process by making it more effective.

Thus digital accounting is always a smart choice in today’s electronic environment and if you wonder about its advantages, keep reading to learn its benefits.

  • Time-Saving

Digital accounting eases a lot of manual work in the entire process of financial operation. There is no need to do manual data entry and report every financial entry every time and every day. Later it lets the accountant go through a more process-oriented platform and helps them to save more time.

  • Increase Productivity

As the process of digital accounting is computerized, it becomes a hassle-free job that yields accuracy. Therefore it will let you and your accounts department focus on more important issues. Thus it speeds up the entire process and helps to increase the overall productivity of your organization.

  • Offers Better Accuracy Of Data

We all know that electronic solutions are more reliable than that Digital solutions as there is no manual interference, so there is less chance of human error. Traditional accounting methods are outdated as people are prone to make mistakes, whereas digital systems will provide reliable data with much more accuracy.

  • Scalability

Scalability is another important factor of digital accounting. Manual Accounting is fine for small businesses, but when your business is starting to grow, you need to change your accounting system and scale it up as per the requirements. So a digital accounting system can assist in such a case.

  • Enhanced security

Cyberattacks are becoming a very common phenomenon these days, so the safety of your valuable data should be the priority and an integral part of each business. Digital accounting solutions provide a more high level of security to all your sensitive data.

They offer encryption and access restrictions to usual backups and cloud storage, eliminating the risk of data loss. With such a multi-level solution, an organization’s data stays well-protected and is always available even in a system failure or data breach.

  • Remote access

Digital accounting systems utilizing cloud-based accounting software have the advantage of being accessible from any mobile device and from anywhere across the globe. This offers a much more streamlined way of working and is particularly convenient in case of serious issues like a system failure. Users can log in from a different device and continue their work.

  • Analytics and real-time advice

A digital accounting solution provides all sorts of meaningful insights and analytics, which makes it much easier to create financial reports and is also used to spot trends. This data is mostly provided in real-time, making it easier for accountants to make educated business decisions even faster.

  • Syncing & Integrations

Integrating a digital accounting program with other business tools is very easy and effective as they can update themselves in real-time by auto-syncing the data. This eliminates the chances of manual work significantly and ensures that each data is always up to date throughout all platforms.

Conclusion

Digital Accounting
Digital Accounting

Digital accounting, therefore, is a very lucrative way of taking your business to the next level with the assistance of a strong financial system to provide backup. So, if you are looking for the best-quality digital accounting services, look no further than Profit Jets. We have a team of dedicated accounting professionals who are well-versed in all the tools, software, and laws of the nation. We can offer you the best solutions and help your business thrive. 

Contact us today to learn more about our services and also discuss your digital accounting requirements.  

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