eBay bookkeeping made simple with A2X
Use cloud-based software and A2X to level up your accounting
Whether you’re just starting or you’re a well-established online business, you’ll probably have heard of eBay. Established in 1995, it’s been a popular online auction marketplace for many years and is a great way for e-commerce businesses to supplement their existing revenue channels.
Most eBay sellers will agree that bookkeeping can be painstakingly time-consuming – but it’s the price you pay for being an entrepreneur. eBay uses third-party payment portals to send and receive payments, and for those new to business online, it’s not uncommon to initially feel overwhelmed by your eBay finances. To keep track of things, most people start with spreadsheets – and quickly realise this method is less manageable the bigger your business gets.
While an e-commerce accountant is never a bad idea, investing in good accounting software is a matter of survival. There are lots of accounting tools that can help you automate, or at least simplify, your accounting tasks.
eBay accounting and bookkeeping software
Between expenses, inventory, tax, sales, and receivables, there’s not a lot of downtime when managing your finances. So, when it comes to choosing accounting software, you’re looking for a solution that will make life easier.
Obviously, you want something cloud-based – that’s a given, considering you’re an online business. Also, the power and flexibility of cloud-based systems are second to none. You’ll have real-time access to your financial records from anywhere in the world (so long as you have an internet connection of course!) If you choose to work with an accountant later on, you won’t have to worry about transferring your accounting information.
Cloud-based systems also easily integrate third-party apps and, perhaps most importantly, they offer automatic software updates, so you always have the latest numbers in the palm of your hand.
To get moving in the right direction, here are our software recommendations:
The best systems for your eBay business
The best accounting software for your eBay business will help you track your income and expenses as well as produce the reports you need to make sound decisions that will scale your business.
Now that you know what factors to consider when choosing the best accounting software for your eBay business, let’s take a look at some examples.
Quickbooks has a well-established track record as an easy-to-use, high-quality tool. With millions of customers worldwide, it’s one of the most popular options for small businesses.
It allows you to keep track of your accounts, create custom invoices, accept multiple currencies, and access hundreds of integrations. It’s super-easy to set up and offers a great user experience. Its impressive inventory management feature (part of the Plus plan) gives you the ability to set default sales and purchases prices, item descriptions and stock levels – all within QuickBooks.
Xero may not have been around quite as long as QuickBooks, but it has quickly matured into one of the world’s leading bookkeeping solutions – now with over one million users.
Xero offers slick invoicing, simple bank reconciliation, and an enjoyable mobile app to do your accounting on the go. It also offers a stand-out inventory management feature which easily keeps tabs on stock quantities and values thanks to intuitive inventory tracking.
In addition, Xero can tell you what your best-selling and most profitable products are and provide extensive reporting on key aspects of your business. You can use this information to do things like optimising order quantities or perfecting your pricing. Lastly, this feature can bulk-import inventory records, so you won’t have to manually import them.
A2X for Shopify – it works with eBay too
When buyers purchase your items on eBay, they can use a variety of payment methods. How quickly the funds appear in your bank account will depend on how they’ve paid.
PayPal is a popular option among online shoppers, and the good news is, you can integrate your eBay account with PayPal and either QuickBooks or Xero. However, whenever a transfer of funds is made from your PayPal to your accounting software, it displays as one lump sum under ‘revenue’.
This can cause several accounting issues and cloud your visibility of how your business is doing. If you intend to grow a successful eBay business, you need to see detail – how much you’re paying in processing fees or which of your products earns you the highest amount of revenue, for example.
Using a third-party tool to better itemise your revenue and expenses will give you the visibility you’re looking for. A2X is a leading accounting connector tool that helps Amazon and Shopify sellers understand and analyse their business better – and now it can help eBay store owners with their accounts.
Here’s what eBay businesses can expect when using A2X for Shopify:
- Save time.No more transaction data entry from spreadsheets – A2X connects directly with Xero or QuickBooks and automatically imports this information.
- Tidy books.A2X will itemise your eBay sales data and send it to your accounting software so it matches the lump sum you receive from PayPal.
- Advanced reports.The data you use to make crucial business decisions needs to be accurate. A2X’s reporting gives you confidence in your numbers, so you can move your business in the right direction.
Leave your accounting woes behind
Accurate bookkeeping is the foundation of any successful business. Even so, for most it only becomes tolerable with accounting systems and tools.
There’s no need to spend your evenings poring over those spreadsheets or putting off reconciling your accounts, when there are ways to automate manual tasks and gain access to real-time, accurate-to-the-cent reports.
Stay on top of your eBay accounting by using good accounting software integrated with A2X for added freedom and accuracy. Take action on your finances now, and reap the rewards for years to come.
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