Choosing the right business accounting software for an e-commerce business can prove to be a challenge. There are several different types of software available, and not all are created equal. As more commerce websites are being set up every day, it becomes imperative to have software that can be used to keep track of all of the information needed by these sites.
Online invoicing is a term that describes a method of taking payments and invoice your customers or vendors. Invoice maker software differs from traditional accounting software in that it encompasses online and e-commerce related things. When selecting the right accounting software, it pays to go with one that has several features helpful to e-commerce businesses when deciding on which type would be best for your company. One feature that should be in your package is an online distribution feature. This will allow you to send your invoice to your customers and get paid via credit card, direct debit, or PayPal without having to put your clients on hold or worry about having to figure out a way to make the payment.
Software should also have advanced features for recording sales, expenses, and transactions. This is important if you have a lot of inventory. You may want to keep track of where each product came from before you sold it and how much to pay for it.
Another option would be to record each sale and its invoice manually. This could become time-consuming, and if you have many invoices, this could lead to inaccurate data entry and possibly missing payments on your customers. Invoice software should also give you the ability to export data and create custom reports.
Some of the other features you should consider are business reporting and analysis features. Bookkeeping can be extremely tedious work as you have to enter data and then analyze it afterward manually. With some accounting software, you can easily create reports that will help you understand your cash flows better. For example, you can create reports that display how much profit your company is making versus its expenses. This will allow you to make changes accordingly to improve your profit margin.
To know more about selecting the right accounting software for your business, check out the infographic below from KIPPIN: