The4 Team

October 1, 2024

[12+] Best Accounting Services For eCommerce Business in 2024

Name: The4™ Studio
Brand: The4
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[12+] Best Accounting Services For eCommerce Business in 2024

Running an eCommerce business can feel like juggling a hundred tasks at once—managing inventory, handling customer service, marketing, and, of course, keeping track of your finances. But let's face it, the financial side of things can often be the most confusing and time-consuming, especially if you’re not a numbers person. That's where accounting services come to the rescue!

In this guide, we’ll explore the best accounting services tailored specifically for eCommerce businesses. If you’re ready to spend less time crunching numbers and more time growing your business, read on to find your perfect match!

What is Accounting Services?

Accounting services are professional services that record, analyze, and interpret financial information. They help businesses and individuals understand their financial health, make informed decisions, and comply with legal and regulatory requirements.

Common accounting services include:

Bookkeeping: Recording financial transactions, such as sales, purchases, and expenses.
Tax preparation: Preparing and filing tax returns for individuals and businesses.
Financial statement analysis: Analyzing financial statements to assess a company's financial performance and position.
Auditing: Examining financial records to ensure they are accurate and comply with accounting standards.
Financial consulting: Providing advice on financial matters, such as budgeting, forecasting, and risk management.

Why Should eCommerce Businesses Use Accounting Services?

Running an eCommerce business involves managing numerous moving parts, and keeping track of your finances is one of the most critical aspects. But why exactly should you consider using professional accounting services? Here are several key reasons:

Financial Tracking and Analysis: Accounting services allow you to monitor your revenue, expenses, and overall financial health with precision. This data isn’t just for show—it’s a powerful tool that helps you make informed decisions about your business's future. With accurate financial tracking, you’ll know exactly where your money is going and where adjustments can be made.
Tax Compliance: Tax season can be stressful, especially if you’re not familiar with the ins and outs of tax regulations. Having proper accounting records ensures you're compliant with tax laws, helping you avoid penalties, audits, and sleepless nights. Accountants can also help you navigate deductions and credits that you may be missing out on.
Inventory Management: When you're selling online, managing inventory can quickly become a challenge. Accounting systems that integrate with your sales platform can help you track costs, monitor stock levels, and avoid costly overstocking or understocking.
Financial Reporting: Financial statements are the backbone of any business—whether you're applying for a loan, attracting investors, or just wanting a clear picture of your business’s performance. Accounting services can generate detailed reports that give you insights into profits, losses, and areas of opportunity. These reports can be crucial for stakeholders who rely on your financial transparency.
Fraud Prevention: Fraud can be a significant risk in any business, especially online. Strong accounting practices make suspicious transactions and discrepancies easier to detect and address. Accounting services provide an extra layer of oversight, reducing the chances of fraud slipping through the cracks.
Business Growth: Want to scale up? Accurate financial data is the key to identifying growth opportunities. Accounting services help you make strategic decisions for long-term growth by analyzing cash flow, revenue trends, and profit margins.
Investor Relations: Investors like numbers, and they like them to be accurate. Reliable financial information builds trust and credibility with potential investors. Having a solid accounting system in place ensures that your financial data is clear, consistent, and ready to present.
Regulatory Compliance: E-commerce businesses often face unique regulations depending on the products they sell or the markets in which they operate. Accounting services help ensure that you remain compliant with these rules, avoiding legal trouble and keeping your business running smoothly.

Top 12 Best Accounting Services For eCommerce Business

1. Merritt Bookkeeping

Merritt Bookkeeping is a professional service that provides essential bookkeeping for small businesses, primarily in the U.S. They cater to a diverse range of industries and business sizes, customizing account categories to fit each client's needs.

What do you get?

Automated monthly bank reconciliation
Bookkeeping in QuickBooks (with setup if needed)
Financial reporting via email through a custom interface
Same-day responses for reporting inquiries
Direct communication with your CPA to provide necessary info
Discounted catch-up bookkeeping services
90-day money-back guarantee

Pricing: Merritt Bookkeeping charges a flat rate of $190 per month.

Website: merrittbookkeeping.com

2. Xendoo

A small business owner founded Xendoo to give entrepreneurs financial peace of mind. With a team of tax experts and bookkeepers, Xendoo delivers specialized services designed for the financial success of small to mid-sized businesses. Their advanced technology enhances efficiency, making their team 10x more effective in serving their clients.

What do you get?

Bookkeeping: Dedicated bookkeeper for monthly reconciliation
Tax Services: Always tax-ready and compliant, with optional Tax Guidance and Annual Federal & State Tax Return (available for an additional fee)
Catch-Up Services: Get your books up-to-date if you’ve fallen behind
Fractional CFO Services: Add-on service offering expert financial guidance and strategic decision-making support

Pricing:

Essential: $395/month
Growth: $695/month
Scale: $995/month

Website: xendoo.com

3. BKE

BookKeeping Express (BKE) is a professional outsourced bookkeeping service designed to support small businesses with affordable financial solutions. Initially focused on simplifying back-office procedures, BKE now offers comprehensive eCommerce accounting services for mid-sized businesses.

What do you get?

Dedicated BKE team with industry-specific expertise
A suite of financial management tools and software
Accounting system setup
Bank account reconciliation
Bookkeeping and accounting services
Monthly financial reporting with dashboard and real-time analytics
Catch-up and clean-up bookkeeping to reconcile accounts and correct discrepancies
Accounts payable management (Bill Pay/Entry)
Tax filing services, including preparation, filing, and full compliance

Pricing: Starting at $275 per month.

Website: bookkeepingexpress.com

4. Xero

Xero is a cloud-based accounting software designed for small and medium-sized businesses. It provides a range of financial management tools, including double-entry bookkeeping, budgeting, and unlimited users. Xero also allows you to customize your dashboard to view all your eCommerce metrics in one place.

What do you get?

800+ integrations: Connects with third-party apps like Shopify and Stripe to expand functionality
Unlimited users: Add as many users as needed, with customizable control levels for different accounts
Invoicing and quotes: Customizable invoice templates, automatic reminders, recurring invoices, and the ability to send and receive payments from other Xero users
Expense tracking: Link credit cards and bank accounts, categorize expenses, and track transactions with automatic categorization

Pricing:

Starter - $7.25/mo
Standard - $11.50/mo
Premium - $15.50/mo

Website: Xero.com

5. inDinero

inDinero is a financial services provider offering a full suite of solutions through a team of remote and in-house experts, including CPAs, CFOs, Controllers, and bookkeepers. Their mission is to simplify financial management and provide actionable insights to help businesses thrive.

What do you get?

Expert financial advice, budgeting, forecasting, and cash flow management
Detailed financial insights and analysis
Comprehensive tax services to minimize liabilities and reduce stress

Pricing:

Essential: $750/month
Growth: $1,250/month
Executive: Custom pricing

Website: indinero.com

6. Zoho Books

Zoho Books is an all-in-one platform designed to streamline bookkeeping tasks and organize business transactions. It offers a secure space to manage bills and invoices, reconcile bank statements, and control spending efficiently.

What do you get?

Easily import and organize existing data for smoother operations
Tailor sales and purchase templates to match your business needs and brand identity
Manage multiple tasks with automated workflows like email alerts, field updates, and in-app notifications
Centralized location for document storage, with options to upload receipts and other documents directly to transactions

Pricing:

Free
Standard: $10/month
Professional: $20/month
Premium: $30/month

Website: zoho.com

7. 1-800Accountant

1-800Accountant is the largest virtual accounting firm in the U.S., specializing in small business financial services. Its approach combines CPA expertise with powerful technology to offer tailored accounting solutions, drawing from its experience working with larger companies.

What do you get?

Potential savings of over $12,000 in taxes annually
Easy handling of payroll and employee benefits
Save time and resources by outsourcing bookkeeping tasks
Personalized support to gain insight into your financials

Pricing:

Business: $179/month
Core Accounting: $239/month
Enterprise: $399/month

Website: 1800accountant.com

8. Pilot

Pilot is the largest accounting firm for startups in the U.S., trusted by thousands of companies. Their end-to-end eCommerce accounting services scale as your business grows from a startup to an established company. Pilot emphasizes tailored customer experiences, expert teams, and a seamless, integrated platform.

What do you get?

Accurate and detailed bookkeeping with triple-checked financial statements
Assistance with income tax filings, 1099s, and other tax needs
Expert guidance on budgeting, metric tracking, funding, and more
Specialized service for R&D-heavy companies, handling tax claims

Pricing: Pilot offers various pricing options. Visit their website to select a plan that suits your business needs.

Website: pilot.com

9. Paro

Paro is a platform designed to support businesses and professionals in achieving long-term goals by pairing proprietary AI technology with industry expertise. Their model focuses on solving problems quickly and providing strategic planning for future growth.

What do you get?

Access to the top 2% of business financial professionals
Faster expert matching through AI talent-matching technology
Comprehensive eCommerce accounting services, including bookkeeping
Business systems and process solutions
Strategic advisory services
Financial planning and analysis
Audit and assurance services
Tax services
Vertical solutions tailored to industry needs

Pricing: Pricing varies based on services. Contact Paro for a customized quote based on your specific requirements.

Website: paro.ai

10. Bookkeeper.com

Bookkeeper.com has over 30 years of experience providing bookkeeping and accounting services. As a faith-based company, its mission is to improve the lives of small business owners through cost-effective and flexible financial solutions. Their team offers personalized service and support to help you manage your business finances efficiently.

What do you get?

Online bookkeeping
Financial statement preparation
Streamlined bill pay services
Full-service payroll management
Financial planning and investments
Audit assistance
Budget preparation
Tax preparation and advising, including tax return management
Business advising

Pricing:

Tax services: Starting at $350
Bookkeeping: Starting at $399/month
Payroll: Starting at $125/month

Website: bookkeeper.com

11. Justworks

Justworks offers more than just eCommerce accounting services, extending to payroll, employee benefits, and HR services. Their mission is to help you focus on your business while ensuring your team is well taken care of. They provide comprehensive solutions that include handling compliance and supporting your business operations smoothly.

What do you get?

Manage payroll with benefits deductions, tax withholdings, vendor/contractor payments, and time-tracking integration.
Access 401(k) plans and insurance options (medical, dental, vision) to support your team with affordable deals.
Integrated software for effective team management.
Assistance with federal, state, and local payroll taxes, as well as W-2 and 1099 filings.
Always available to help with your inquiries.

Pricing:

Payroll: $8/month per person
PEO Basic: $59/month per person
PEO Plus: $109/month per person

Website: justworks.com

12. Bench Accounting

Bench is a widely used accounting service tailored for ecommerce business owners. They focus on simplifying financial management with user-friendly tools and affordable plans. Bench’s goal is to provide financial insights and peace of mind, allowing business owners to focus on what they care about most.

What do you get?

Streamlined platform for easy financial management.
A team of financial experts to handle your bookkeeping needs.
Monthly financial statements and actionable insights to keep you informed.
Access real-time financial data and insights.
The Premium plan includes expert tax preparation, filing, and year-round advisory support.

Pricing:

Bookkeeping: $299/month
Bookkeeping & Tax: $499/month

Website: bench.co

Frequently Asked Questions

1. What do ecommerce business owners need to keep track of?

eCommerce business owners need to closely monitor several key financial metrics and data to maintain a healthy and profitable business. These include:

Cash Flow: Cash flow represents the movement of money into and out of your business. It’s crucial to track this to ensure you have enough liquidity to meet your financial obligations and avoid unintentional debt.
Gross Profit: This is the total revenue minus the cost of goods sold (COGS). Tracking gross profit helps you understand how much you're earning after covering the direct costs of your products or services.
Gross Margins: Gross margins express your gross profit as a percentage of your total revenue. This metric helps you gauge how efficiently you're generating profit relative to your sales.
Balance Sheets: Your balance sheet provides a snapshot of your business's financial health by detailing assets (like cash and inventory), liabilities (such as debts and taxes), and shareholder equity. Keeping an eye on your balance sheet ensures you're aware of your overall financial position.
Profit and Loss (P&L) Statements: P&L statements give a detailed breakdown of your revenue and expenses over a specified period. They highlight whether you're making a profit or loss by subtracting all operational costs—including COGS, payroll, marketing, and overhead—from your total revenue.

2. What are common accounting issues for ecommerce?

ECommerce accounting poses several challenges. Managing sales tax liability across different jurisdictions due to “economic nexus” rules can be complex. Inventory management is another issue, requiring businesses to track goods across multiple warehouses. Additionally, accounting for platform fees, handling product returns, and dealing with limited access to real-time financial data make it harder to make proactive business decisions.

3. How do you do accounting for an ecommerce business?

ECommerce accounting requires managing online transactions, typically paid through credit cards or digital payment platforms like PayPal and Stripe. Unlike brick-and-mortar stores, eCommerce businesses must track and reconcile sales, returns, refunds, and payments from various sources. They also need to account for inventory, shipping, taxes, and other transactional data to maintain accurate financial records.

4. Do I need an accountant for my ecommerce business?

It depends on the size and complexity of your eCommerce business. If you're just starting, you might not need an accountant right away. However, as your business grows and your financial needs become more complex—such as handling taxes, inventory, and financial reporting—an accountant can provide valuable support and help ensure your financial health.

Final Thoughts

Finding the right accounting service is crucial to the long-term success of your eCommerce business. The services we’ve highlighted offer a range of options—from basic bookkeeping to complete financial management—so you can find a solution tailored to your needs. Take the time to evaluate which service best fits your business model and growth stage, and set yourself up for a smooth financial journey in 2024 and beyond.