What is E-Commerce Accounting?

The concept of e-commerce, which emerged with the globalization of trade and adapting to the digital world by moving to the internet, has spread across the world. Thanks to e-commerce, customers are just a click away from their needs and wants. However, e-commerce is not only advantageous for customers, sellers also benefit from e-commerce, which is a more efficient form of shopping through easier and less cumbersome methods. However, there are certain considerations that must be taken into account regarding e-commerce. With the digital environment, careful attention must be paid to bank account tracking, checks and promissory notes tracking, invoice processing, and customer account monitoring conducted over the internet. Those engaged in e-commerce must have a specific plan in this regard. In this context, the process of e-commerce accounting can simplify many operations.

E-commerce accounting consists of tracking incomes and expenses in online shopping transactions, tax tracking, planning company expenses, bank account, stock inflows and outflows, and conducting overall financial monitoring. Companies must perform accounting operations accurately and pay close attention to the details of all calculations. There are many things that can be done within the scope of e-commerce accounting, but we can briefly touch on this topic with regard to the previous steps. Working with a professional accountant will always reduce the risk factor when e-commerce accounting is carried out correctly and effectively. The experience and knowledge of these individuals regarding accounting is one of the important factors for the accuracy of calculations and monitoring. Additionally, the financial advisor you work with is also of great importance. The assistance of these knowledgeable individuals in financial matters is invaluable.

However, it is not a wise decision to leave all monitoring tasks to the financial advisor and accountant and step back. The business owner should always monitor these processes and make plans while considering these factors, which is essential for the success and development of the company. In record-keeping operations, e-commerce accounting is crucial for the company to identify its position in the market and define itself in its future plans.

Why is E-Commerce Accounting Important?

E-commerce accounting processes are one of the topics that every business should pay attention to, as it allows for the correct identification of the company's financial structure and the accurate realization of financial adjustments in future plans. The accounting process can be considered one of the key points for a business to survive. With accounting, the economic data of the company is collected under one roof, enabling the creation of relevant graphs and planning, thus allowing the company to see its situation and make necessary changes and improvements accordingly. This is of great importance for e-commerce as well. E-commerce accounting is one of the most critical parts of e-commerce due to its role in the company’s digital data transfer, financial accumulation, transaction and classification, and providing information about the company’s financial status.

How is Effective E-Commerce Accounting Done?

Similar to normal circumstances, there are some steps and methods that are followed in conducting e-commerce accounting. Most of what is examined within accounting also applies to e-commerce accounting. All financial records and accounting operations related to the company's e-commerce segment, including all online sales, are carried out through this section via digital environments. The things required to perform e-commerce accounting effectively and healthily can be described as follows:

Tracking Incomes and Expenses

Tracking incomes and expenses, which is one of the most closely monitored aspects of accounting, is also a critically important part of e-commerce accounting. In e-commerce accounting, a comprehensive calculation and planning is made for incomes generated online or physically as well as the expenditures incurred against them. The most important thing is to keep all these processes recorded and ensure that these records are processed accurately. In income and expense tracking, costs, storage expenses, logistics costs, rent amounts, significant invoices, employees' salaries, product and service amounts, and other financial records are monitored. These records and tracking are essential for e-commerce accounting, and your accountant must handle these processes in detail.

Tracking Profit and Loss

The main purpose of tracking profit and loss is to see how much of the amount the business has spent and how much can be allocated for growth, as well as to identify overall expenditures. Monthly tracking of profit and loss is very important for the business to continually monitor its status. By analyzing the graphs generated at the end of the month, one can assess the impact of advertising and marketing efforts, the status of products, and overall customer satisfaction. In addition to monthly profit and loss reports, it is also necessary to produce reports quarterly, semi-annually, and annually. Comparing reports from different time periods and measuring their alignment with future plans will aid the business in making stronger advancements in profit and loss programs in the future.

What are E-Commerce Accounting Programs?

The accounting programs referred to as e-commerce accounting programs are tools used by the accounting department assigned for tracking the financial conditions of businesses tailored to the needs of the company. These tools provide an opportunity to handle the mentioned accounting requirements more easily and with less hassle. With e-commerce accounting programs, it is aimed to easily conduct digital tracking of taxes, income, expenses, costs, salaries, and many other financial matters, aided by the digital environment. These programs also communicate necessary reminders and notifications to the accounting department, preventing situations such as missing dates and misunderstandings. The presence of certain modules and methods that should be included in accounting is of great importance. The modules that these programs must include to meet the needs of the company can be listed as follows:

• Sales Tracking
• Order and Proposal Tracking
• Reporting Tracking and Records
• Invoice Tracking
• Customer Tracking
• Supplier Tracking
• Employee Account Tracking
• Debt/Credit Tracking
• Stock tracking
• Other e-commerce operations
• Expense Tracking
• Cost, Expense Tracking
• Cash Tracking (it is important for the e-commerce accounting program to have separate accounts for TL and foreign currency in this module.)
• Bank Tracking
• Check and Promissory Note Tracking

With the existence of these modules, e-commerce accounting processes can be easily handled through programs. We can briefly mention what can be done within the scope of the modules. For example, invoice tracking processes can include preparing and sending pro forma, retail, and return invoices, which are significant in commerce. Additionally, it is possible to issue e-invoices via accounting programs, accelerating the processing. Another important module is customer and supplier tracking. Through these modules, it is possible to respond to customers' wishes and needs, thus easily preparing related reconciliation letters and other documents. Regarding suppliers, the tracking of product and service delivery days and general follow-ups is made considerably easier through these accounting programs.

Accounting programs have facilitated conducting e-commerce operations, which are completely digital forms of purchasing and selling, in a digital environment. Accounting programs create an easy business environment for both businesses and accountants, and they are increasingly common in recent times. In this regard, careful selection of these programs and ensuring they have comprehensive modules is essential. The more comprehensive and detailed a program is, the more tasks can be accomplished. In this context, you can look into ERP solutions and select the most suitable software programs for your company.