Bookkeeping for a Trader of Household Goods Operating at Wholesale & Retail Level Digitally

ABOUT CLIENT

The client established an e-commerce brand, selling household goods across multiple e-commerce platforms. The company is based in Santa Ana, California and serves all US, European and Middle Eastern markets.

 

CHALLENGES

The client is a first wave millennial who wanted to be his own boss. He started  with the goal of serving a large community and becoming one of the largest sellers in the household market. He was primarily concerned with generating revenue for the company and therefore was unable to handle accounting issues. E-commerce sellers face many challenges in accounting, including tracking sales and purchases based on stock keeping units, which requires the selection of adequate accounting software and managing the inventory through that software.

 

JOURNEY

We have had business relationships with the client for 3+ years. As a part of this process, we have met his record-keeping needs through soft closes and monthly closes of accounts on a bi-monthly and monthly basis, respectively.

A standard operating procedure and process notes have also been prepared for the stepwise recording of sales and purchases, defining classification heads and rules, and reconciling and closing accounts monthly.

 

SOLUTION

The bookkeeping process was outsourced to us so that he could handle the operational parts of buying, selling, and shipping. Using bank statements and credit card statements, we match purchases with invoices and record expenses incurred through credit cards. We communicate with this client through mails and slack and reconcile accounts based on the statements provided by him.

 

RESULTS

His record-keeping concerns were no longer an issue, so he was able to focus more on expanding his business into the US, Canada, and Europe. The client’s cash flow and finances were effectively managed by closing accounts on a monthly basis. Our firm also saw an increase in revenue thanks to the increased billable cost the client incurred for the services executed. As a result of outsourcing his bookkeeping, the client has generated more revenue since he was able to concentrate on his business.