3 Misconceptions That Could Be Holding Your Ecommerce Profits Back
Growing ecommerce profits relies on efficient, in depth accounting solutions. In order to maximize your company’s potential, however, you need to be ready to take start-up processes apart and put them back together again (only better, the second time).
Take a long hard look at your reporting- everything from the depth of data available to how often it is updated. Is a lack of data holding your business back right now?
Here are 3 common misconceptions around accounting, and how you can avoid the infamous ball and chain holding your ecommerce profits back.
Misconception #1: It’s Too Soon
“The desire to start something at the “right” time is usually just a justification for delay. In almost every case, the best time to start is now.” ~Gretchen Rubin
There’s this misconception that because you may still be considered a small ecommerce business, it would be too soon to move on to a more sophisticated accounting solution. Besides, you seem to be ‘getting by’ just fine at the moment, right? Right?
All too often, what happens in this scenario is that ecommerce businesses purchase start-up accounting software, like QuickBooks, to manage the basics. However, when it’s time to get data that helps decision making, it ends up getting carried out in Excel (or worse yet, done manually). As the business grows, they find that they have now built their processes around disconnected systems with multiple users and it becomes a much bigger (messier) job to re-engineer reports down the line.
Don’t hesitate to get the right systems in place. Now.
Misconception #2: QuickBooks Still (Kinda) Works Fine
“Insanity is doing the same thing over and over again and expecting different results.” ~Albert Einstein
No matter how big or small your business, when it comes to ecommerce profits, your bottom line depends on several factors including the products and operational decisions that carry your brand. This means that your procedures and software needs to evolve with you as business expands.
While QuickBooks is a popular accounting software choice for startups, it will only get a SMB so far; accounting is not a one-size-fits-all approach. Instead, if you can learn to do things in another (more efficient) way, your business can grow and work in a way which ensures profitability.
Get the functionality and actionable data you need to allow your business to operate efficiently, grow quickly and profit rapidly.
Misconception #3: It’s Too Expensive
“Almost everything worthwhile carries with it some sort of risk, whether it's starting a new business, whether it's leaving home, whether it's getting married, or whether it's flying in space.” ~ Chris Hadfield, astronaut
Many ecommerce businesses (especially start-ups) assume they can’t afford a proper accounting software solution to integrate with their online store. Even if you started with an introductory software, as your business grows and order volumes increase, a proper reporting system is necessary to remain profitable and competitive.
When dealing with a limited budget, it’s crucial to understand the importance of such a system and to treat it like any other significant business decision, such as hiring a new employee or pursuing new distribution channels. An accounting solution that saves you from having to hire another employee very quickly pays for itself, faster than you think.
Unlock the Potential for Increasing Ecommerce Profits
Is your accounting system really doing all it can (and should) be doing for your bottom line? Contact the experts at Lumiola: modern accounting solutions for growing ecommerce companies.
“Forget past mistakes. Forget failures. Forget everything except what you’re going to do now and do it.” ~ William Durant, co-founder, General Motors