Research shows that 40% of businesses note dealing with accounting processes as one of the biggest pain points in their day-to-day responsibilities. In this blog, we'll dive into why ecommerce brands should stop perpetuating their fears surrounding the accounting process and leverage integrations to propel their business to new heights.
One of the main key benefits of accounting integration is centralizing your finances. By having all your relevant accounting information in one system, you not only gain a comprehensive understanding of your revenue streams but also save valuable time that would otherwise be spent on manually updating multiple systems. With automation in place, tracking sales, expenses, and revenue in one place becomes easier, enabling you to have a clear picture of your ecommerce brand's financial health and make informed decisions with confidence.
But that's not all. Accounting integrations also eliminate error-prone processes and reduce time spent on manual tasks. By synchronizing data between your ecommerce platform and accounting software, you save yourself the headache of manually entering in transactions like sales records, invoices, and payments. Not to mention the hours of reconciliation spent when you catch an error. Simply put, automation streamlines your operations and reduces the chances of errors creeping in so you can focus on what you love most about running your business.
Another significant advantage of accounting integrations is the real-time sales visibility they provide. These integrations can offer a detailed breakdown of costs at every stage of the transaction. By easily breaking down the costs associated with your sales transactions, you can identify areas for cost reduction and improve profitability. Additionally, as you further analyze these costs, you can make informed decisions to optimize your business operations, leading to increased efficiency and better financial outcomes. With the ability to track and categorize payments, identify trends, and analyze cash flow patterns, you can proactively address gaps, adjust expenses, negotiate better terms, and pursue additional funding if needed. By leveraging accurate and up-to-date cash flow information, you can confidently plan, make strategic decisions, and achieve long-term business success.
Maintaining accurate inventory values is one area where many argue they get the most value from accounting integrations. By automating processes and reducing the need to make manual inventory updates, accounting integrations enable you to maintain real-time inventory records, quickly identify discrepancies, and ensure accurate valuations. Accurate inventory management is essential as it empowers businesses to make informed decisions, sidestep detrimental stockouts, and steer clear of the perils of overstocking. The ability to access up-to-date data allows you to pivot quickly when you face inventory roadblocks and changes in customer demand, enabling you to stay competitive in a rapidly evolving business landscape.
Improved cash flow visibility is another big benefit of accounting integrations. With the ability to automatically record sales, categorize payments, identify trends, and analyze cash flow patterns, you can proactively address gaps, adjust expenses, negotiate better terms, and pursue additional funding if needed. By leveraging accurate and up-to-date cash flow information, you can confidently plan for the future, make strategic decisions, and achieve long-term business success.
Accounting integrations also play a crucial role in audits and reporting. They facilitate organized record-keeping, ensuring historical data availability for audits. You can generate a wide range of reports, including real-time sales visibility, inventory values, cash flow statements, profit and loss (P&L) reports, and balance sheets. These reports provide valuable insights for demand planning, inventory analysis, and financial decision-making. Having access to accurate and comprehensive reports helps you stay on top of your finances and make informed business choices.
According to a study conducted by the Aberdeen Group, it was found that 40% of respondents identified the need for real-time availability of data as a key challenge in their accounts payable (AP) processes. This highlights the importance of timely access to information for efficient financial management. Additionally, the study revealed that 29% of respondents faced challenges in managing paper-based records, indicating the limitations and inefficiencies associated with manual and physical documentation. These findings emphasize the significance of embracing digital solutions and automation in AP processes to overcome these hurdles and streamline operations. By leveraging technology and integrating systems, businesses can overcome the challenges of real-time data availability and cumbersome paper-based records, leading to improved efficiency and enhanced financial decision-making capabilities.
By leveraging accounting automation through integrations, ecommerce brands not only optimize their financial management but also develop a risk-aware mindset that allows them to proactively address vulnerabilities and seize opportunities for growth. The integration of financial data provides the necessary insights and flexibility to adapt to changing circumstances, ensuring long-term success and sustainability in the competitive ecommerce landscape.
Want more in-depth information on how accounting integrations work? Access our whitepaper, An Extensiv Guide for Integrating Accounting into Your Ecommerce Fulfillment Tech Stack, today!
