As an ecommerce business owner, understanding your financial health is critical to sustaining and growing your business. One of the most powerful tools at your disposal is the Profit & Loss Statement. This document not only reflects your company's performance over a specific period but also provides insights into areas where you can optimize for [...]
Now that the year is officially halfway over, it’s time for a true up. Maintaining accurate inventory records is essential for assessing profitability and ensuring your financial statements are correct. A quarterly inventory true up can help you achieve this by reconciling the physical count of inventory with your books. Here’s a a quick guide [...]
As an ecommerce entrepreneur, managing inventory often feels like an endless cycle. Constant borrowing to fund inventory can strain your cash flow and make it difficult to achieve financial stability. Unlike brick-and-mortar stores, ecommerce businesses face unique inventory challenges, adding to the confusion. However, there are proven strategies to break free from this cycle. Let’s [...]
As we enter the third quarter next week, ecommerce businesses must focus on fine-tuning their financial strategies to ensure continued growth and profitability. Profit First provides a great set up to review your business and make sure you’re prepared for what’s to come. Here are some essential steps to help you navigate this Q3 with [...]
Aligning sales with profitability is vital for the sustainability and growth of any business, but this process can look a bit different when it comes to ecommerce. An increase in sales doesn’t automatically mean increases in profit, as there are other factors at play in the sales process. Let's talk about the essential elements that [...]
As an ecommerce business owner, maintaining a firm grasp on your financial health is critical. One of the key tools at your disposal is the balance sheet. This document provides a snapshot of your company’s financial position at any given moment. Here’s a detailed look at what you should regularly review on your balance sheet [...]
Do you find yourself wondering how much of your Amazon payout should be set aside for your next inventory purchase? Are you struggling to keep track of upcoming supplier payments and upcoming credit card due dates? If these questions leave you scratching your head, it might be time to implement Profit First to take control [...]
Unlocking the secrets of profitability in your ecommerce business requires a special understanding of your financial statements. One report in particular, your balance sheet, provides 5 driving profitability forces to keep your eye on. So, let's discuss them and how they can impact your profit and your business. The 5 Drivers Picture your financial statements [...]
For any ecommerce business, understanding its performance is crucial for growth and sustainability. While Gross Margin remains a fundamental metric, there are several others worth delving into. Let's explore three key KPIs, how to calculate them, what insights they offer, and the benchmarks to aim for. Inventory Days Inventory Days assess how efficiently you convert [...]
Just like last year, prices are still continuing to rise to crazy prices, and yet we still have to somehow save to pay that tax bill coming up, on top of gas and groceries. If you’re not prepared, it can get a little scary. So, are your accounts ready? Profit First Prep Profit First can [...]
