A chart of accounts (COA) is a financial, organizational tool that provides an index of every account in an accounting system. This provides insight into all the financial transactions of the company. Here, an account is a unique record for each type of asset, liability, equity, revenue and expen...

E-commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or c...

The income list is one of the most important financial statements because it details a company’s income and expenses over a specific period. This document communicates a wealth of information to those reading it—from key executives and stakeholders to investors and employees. Being able to read a...

Operating expenses are indirect costs associated with doing business. These differ from the cost of goods sold because they’re not directly associated with the process of producing or distributing products or services. It helps eCommerce businesses visualize their performance. But additionally, i...

Every e-commerce business stands on four pillars: Profitability, Productivity, Payment, and Personalisation. Online shoppers have an average return rate of 30%, much higher than the 9% return rate for items purchased in stores. Restricting online returns is not an option considering only 60% of s...

Efficiently documenting the cash flow, small businesses avoid a very common pitfall, which is running dry of cash. Accounting allows entrepreneurs to understand their business' financial well-being much better as they learn how to comprehend income statements, cash flow statements, and balance sh...

Financial statements are essential since they provide information about a company's revenue, expenses, profitability, and debt. Financial ratio analysis involves the evaluation of line items in financial statements to compare the results to previous periods and competitors. The income statement, ...

Ecommerce business grows, and your finances will get more complicated. Sales, returns, supplier payments, banking fees, Income, Expenses, Profit, Transactions, and statements — all of the in-and-out money movements will need to be properly categorized, analyzed, and then reported to the tax autho...