We just had a bookkeeping firm coming to us for doing book keeping of an E Commerce Company.
Initially, I was a bit surprised about making things complex out of simple things and that is the reason I am writing how to do accounting for E Commerce Companies.
Just to give some background, the bookkeeping firm was accounting every invoice generated in Xero and allocating money received from PayPal and others against each invoice. This made the bookkeeping process too hefty and time consuming.
This way you can save several hours while keeping your accounting system including Receivables light and clean.
Many Book Keepers ask do they need data for line level. My answer to them is data is always available on CRM or E Commerce Websites and you can always easily pull as required. After all complicating the books of accounts for no reason isn’t a smart thing!
Happy Accounting!