While managing an Online business may seem easy, the real challenge lies in the accounting of the business. There are many complexities that an Online or e-commerce seller faces. In this Blog, Mr. Nevil Sanghvi, the Director of Antraweb Technologies Pvt. Ltd. and Vice President of Bombay Industries Association (BIA), explains the problems faced as well as provides a solution for their problems.
From a Pen to a Car or even a House, you can sell everything online. While selling online, distance is measured in time instead of kilometres. Our customer goes online from any corner of the world, orders and gets the delivery within the time promised. That’s the power of E-commerce business.
Customer convenience is the utmost priority along with customer satisfaction. Online businesses are capable of providing both these attributes at the highest of levels of customer satisfaction, thus creating a cut-throat competition.
Customers are being lured with discounts, quick deliveries, and other services like gift wrapping, gifting, etc. Businesses are coming up with new ways of getting noticed and to stand out from the crowd.
While all these strategies may or may not work, the other most important aspect for an online seller is how efficiently he/she handles data. Because data is what drives strategies and decisions.
We have many tools and ways of managing and handling data. But are we being efficient? Is our productivity graph growing higher with every passing year?
As an online seller, it is important to have the right Accounting & Business software that effortlessly supports your business. Also, your software needs to be quick and efficient.
Few basic features that an Accounting/Business software used by an Online seller must possess:
Over time, changes in GST are being made repeatedly. Due to this, it gets difficult to keep track of the changes made. And hence, the software must be GST compliant so you do not need to worry about the statutory part of the business. You can focus on what you do the best i.e your business.
E-commerce business profitability
Your Business software must be able to manage multiple functions and be closely integrated with e-commerce websites where you’re selling like Amazon, Flipkart, etc. Various functions like tracking orders and raw-materials are a tedious task and may require a lot of time and manual effort. All this productive time of the employee can be utilized at a more productive function.
Why and Who should use Accounting software?
An Online seller is an internet entrepreneur. The kind of entrepreneur who doesn’t have to know everything before getting started. There are so many third-party tools that can be used to make your business simpler.
One of the most challenging parts of being an Online seller is the accounting & settlement with E-commerce websites. Also, there are so many calculations to be done to find out the final Profit made by the business. Also, imagine, the number of calculations you will have to do, as these e-commerce websites send a spreadsheet after regular intervals of time with a consolidated list of transactions relating to your products made online. You will spend a considerable amount of time simply getting through your accounting.
While the troubles of calculations cannot be ignored the sweet pain of having hundreds of transactions is not unavoidable either. In fact, who doesn’t want to sell more? But the problem again comes in the accounting that needs to be done for every transaction made.
An easy way to deal with this issue is to get an automated system wherein you do not have to do all these calculations.
Software like Tally.ERP 9 which are GST compliant and also has a framework that integrates with an e-commerce platform like Amazon and others, offer the best options. Once the problem of accounting is solved, the internet Entrepreneur can carry out his/her business more efficiently.
The benefits of using an e-commerce integrated accounting software like Tally.ERP 9 are huge:
Manage more sales
With the increase in sales, it becomes important to manage the whole customer buying process efficiently. If not done efficiently, you might lose business and disappoint your customers.
There are more than a million sellers on Amazon, Flipkart, etc. Which means you have a very high level of competition. You need to understand how successful Online sellers are selling, what software they use and how do they manage their growing sales with minimum expenditures.
Every E-commerce seller may not have a team to manage various functions. If that’s the case with your business, you can use E-commerce website integrated Accounting software which will automate your entries as well as keep track of your inventory. Thus various functions are taken care of by the software itself.
Manage entire Logistics with minimal infrastructure
Logistic management is one of the biggest concern for online sellers as it is a complicated task that may consume your entire productive time and may leave no thinking space for creativity and strategies. Setting up infrastructure may be a costly affair. Use minimal infrastructure, using the same software used for accounting to manage your logistics at a minimal cost.
Minimum costs through automation
Increasing sales may lead to the hiring of more people to get more work done from them. These new hirings come with a cost. To cut this cost you can automate your process and thus get more work done at no extra costs.
Your e-commerce website and your accounting software need to be in touch with each other.
Thus every time a new purchase is made from these e-commerce websites, the entries are reflected in your accounting software. Thus saving your time.
These benefits are just a small part of a bigger picture. Always request for a trial or a demo of the software before actually purchasing it. Only once you are convinced that the software will add to your efficiency, purchase it. As all businesses are unique and may or may not benefit from this software.
Dear Online reseller, I hope this article will prove to be helpful for you and will improve your business productivity and efficiency.
Happy Online Selling.