How a Virtual CFO Can Help Your eCommerce Business?

We enjoy working with e-commerce businesses because e-commerce entrepreneurs are usually the most innovative and creative people in the room. They often handle everything from product design and development to web development, sales, marketing, and everything in between. However, in our experience, there’s one area where e-commerce business owners often struggle - their finances. There’s no shame in this! The finances for an e-commerce business can be very complicated, even for small operations. There are numerous complex and moving pieces, including international taxes, cost of goods, payment portals, and staying compliant with many regulations. Making a mistake in this area could cost you a lot of money, or worse. That's why it often makes sense to bring in a financial expert to help make sense of things.

Here’s how a virtual CFO can help you navigate all these finance issues, so that you can focus on what's important: "Your Business".

Build A Better Budget

It's crucial for any small business, especially an online one, to have a good budget. A virtual CFO can provide an honest assessment of your current situation and assist in planning for the future. This may involve finding ways to streamline operations and expand the business. While our guide can help you create a small business budget on your own, an outside perspective from someone who understands your business model can be extremely valuable.

Manage Your GST – Pain Free!

Owning a ‘virtual’ store doesn't exempt you from paying taxes. E-commerce stores are required to pay GST, just like physical storefronts. Moreover, there are no exemptions for eCommerce businesses as enjoyed by physical storefronts. They must register mandatorily!!!. If dealing with taxes isn't your forte, seeking guidance on GST is a good starting point. However, at times, you might prefer to delegate tax responsibilities to a trusted professional.

In particular, a virtual CFO can aid in determining your GST registration requirements, assist with the registration process, and help manage your tax payments.

Avoid Common Pitfalls

As we've discussed, financial mistakes can have a significant impact on the success of your e-commerce business. It's common to make mistakes, especially if you're not a financial expert. However, hiring a VCFO (Virtual Chief Financial Officer) can help you avoid these common accounting issues in e-commerce:

Charging incorrect taxes
Not pricing your products to cover additional e-commerce costs such as credit card processing fees, packaging expenses, and website costs
Using outdated accounting software
Failing to track your KPIs

Find The Best Online Accounting Software

If you're selling online, then you're probably using cutting-edge cloud-based software, right? Don't you want to use the best possible software for your accounting, too? Maybe you've already tried switching to cloud-based accounting software but felt overwhelmed by the choices - there are certainly a lot of them.

Working with a virtual CFO can help you navigate the options and find the best software solution for your team, which integrates with your current e-store. Additionally, your virtual CFO can assist you in making the switch and using the new accounting software to track your finances effectively. It's a win-win situation.

We offer our CFO services virtually, so we understand the challenges of running an online business. If you need help managing finances for your e-commerce store, please check out our services here or reach out to learn more.

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