To wrap up our series on financial statements, we’re going to dive into the final statement that helps you manage your numbers—the Cash Flow Statement. This statement is the most difficult to understand when it comes to ecommerce bookkeeping.
When you pull your financial statements, what do you look at first? Chances are you go straight to the net profit line. Last week, in addition to the net profit number, I shared other aspects of your Profit and Loss report that you should be evaluating. This week let’s look at the Balance Sheet to […]
These last few months have been a wild ride for our clients. Some sold more in April than in Q4. Some were laying off employees and pivoting to merchant fulfilled. Most were applying for the SBA loans, both the PPP and the EIDL. The ecommerce business has really been all over the map. I hope […]
As a business owner, you should be reviewing your financials every month. These reports are the pulse of your business. But what exactly are you looking for? Let’s break down what’s important on your Profit & Loss (P&L) sheet!
As of this posting, we are about four weeks in from the time the World Health Organization (WHO) declared the Coronavirus outbreak a world-wide pandemic. Once that announcement was made, our world began changing at supersonic speed. For ecommerce business owners, and many others as well, it didn’t take long to begin to see the […]
The COVID-19 situation has impacted everyone in one way or another. Many of us are considering what to do immediately and then next after that. In other words, what’s the plan? The short answer is get good control of your cash. We’ve created a comprehensive guide as a checklist. You can access it here. Here […]
We are in the midst of tax season, which is always a little stressful, but having Profit First implemented in your business can ease some of that tax-time stress. Profit First is a cash management methodology that sets up any business for success. It teaches ecommerce sellers how stay afloat in troubled waters and come […]
Client Spotlight: Northwoods Humidors When it comes to understanding your numbers and managing cash, many are at a loss in ecommerce bookkeeping. You know you have expenses and bills to pay, but what do you pay first and when, and how do you know you can pay if you don’t know what your financial numbers […]
Resist Temptation: Don’t Borrow from Accounts to Cover Inventory The other day, an ecommerce seller reached out to me with a question about the implementation of the Profit First method they learned from my book. They wanted to know my thoughts on borrowing funds from their Sales Tax or Profit Account to purchase inventory in […]
