Why Transactions Rates Differ for Retail and Internet Processing

Accounting Tips for E-Commerce Business Owners

When running an e-commerce business, one will want to keep things in order to avoid problems. Think about it, with accounting mistakes, one can end up getting audited and dealing with local and state governments. On the other hand, when running a tight ship and keeping things in order, it’s possible to avoid long-term problems. With this in mind, here are three tips for e-commerce business owners.

Weekly reconciliation: First and foremost, when reconciling the numbers, one should add up the credit card processing and merchant account receipts. Then, one can get a better look at his or her weekly profits and losses. Not only that, when doing it this way, it’s possible to spot any minor issues that will cause bigger ones down the road. Remember, whether using a program or doing it via Excel, one will want to keep looking at their numbers.

Use one credit card and bank account: If possible, when running a business, one should use one credit card and one bank account. Then, when running the numbers and looking at sales, one will not struggle. Not only that, by using one credit card, a company can maximize rewards. Think about it, when trying to look at multiple bank and credit card statements, one will waste a lot of time and effort. Not only that, when paying for things like credit card processing and merchant accounts, one can avoid other issues by using a credit card.

Hire a professional accountant: Without a doubt, when running an e-commerce site, one will struggle to keep things in order and under control. Since the average hourly employee or owner won’t have all the know-how, it’s wise to use a professional. Then, he or she can spot any issues that are likely to arise. Furthermore, with the help of a professional, a company can save money on taxes. Remember, the government takes a lot, and it’s up to an e-commerce site owner to do his or her best to recover their funds. Otherwise, one will end up paying a massive tax bill at the end of the year.

When running an e-commerce site, one can save themselves plenty of trouble if they take the time to understand basic accounting principles. Luckily, in the long run, after developing a solid and viable strategy, one will end up keeping their books in order and under control.

Ways to Secure Your E-Commerce Website

As an e-commerce website begins to grow traffic, subscribers and customers, their brand also begins to grow. And when the brand of a growing business begins to develop, first impressions are very important for customers. A growing e-commerce business cannot afford to be branded as insecure and unsafe. Everyday, there are hackers looking to attack e-commerce websites that lack proper security. Once a customer’s credit card information becomes compromised, the entire brand of an e-commerce business is also compromised. Therefore, it should be unacceptable for business to have their website become vulnerable to hackers. That is why an investment in e-commerce website security is a must.

The first step for an e-commerce website to make that it can be secure is to achieve PCI compliance. PCI stands for Payment Card Industry and this is an important data security standard to have. In order to be a reputable e-commerce website, PCI compliance should be sought. This security standard was set by the Payment Card Industry Security Standards Council, which monitors the industry. In order to achieve PCI compliance, there are several requirements that a website must ensure, including making sure the network is secure, strong access control measures are in place and the network must be regularly monitored and tested. There are also PCI scans that can be achieved through an Approved Scanning Vendor (ASV), which examines the website for defaults.

Consumers will feel secure by making sure all orders have track-able numbers and there are multiple payment options. Businesses that have merchant accounts will be able to accept online payments. That is why it is vital to have a merchant account website that accepted credit cards, debit cards and bank accounts. For security purposes, the e-commerce business should use credit card processing services. Essentially, an e-commerce website can document online payments and transmit the funds through credit card processing.

E-Commerce websites will be secure if there is an SSL (Security Sockets Layer) Certificate. This ensures that there is a secure connection. Consumers will notice there is an HTTPS in the website address. There are also different types of SSL certificates. Another helpful way to block hackers is by using a firewall and by having security questions for consumers who forget passwords.

Why Accounting Might Be Tedious When You Run an E-Commerce Business?

When running an e-commerce site, one will have a lot of work on their hands. Not only will the entrepreneur have to set up the website and buy a lot of products, he or she will have to worry about certain aspects such as accounting. While it is not as hard as in the past, it is still a lot for most people to take on and worry about. To understand this further, here are four reasons why accounting is tedious when running an e-commerce business.

Many forms of payments:

It is wise for an e-commerce site owner to accept many forms of payment. With this comes a few problems; one will have to tally up their credit card receipts, checks and any other methods of payment such as PayPal. This is a time-consuming and annoying task as a person will have to check out multiple sources to find his or her sales.

Merchant accounts:

With a merchant account, one can keep track of sales and understand where they brought in money. This is not difficult if a person knows how to use a computer and basic accounting programs. However, it is wise to choose the best merchant account company as one mistake will lead to serious long-term issues.

Buying goods:

Of course, when running an e-commerce site, one will have to spend money on products. While this is part of doing business, one will have a lot of trouble on their hands when they do not keep track of their purchases. Ideally, a small business owner should sit down and tally up receipts every month or two. With this, one will know how much money they make and which products sell the best.

Paying contractors and employees:

It is still often necessary to pay an employee or contractor to take care of certain matters. This is true for almost anyone in the industry as it is hard to run a company without a little help. In fact, one will have to spend money to accept credit cards or to build the website. Either way, when keeping track of all this, one will have an easier time keeping the books balanced.

It is not easy to run an e-commerce company. However, when using the right tools and understanding the process, one can save a lot of trouble and end up with a profitable and sustainable business on their hands.

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