Definitely agree! Ecommerce Bookkeeping is no easy task! Not understanding how ecomm bookkeeping works often lead to poor financial data and thus result to poor business decisions.
What would be really helpful is to tell us what the journal entries would be to make the adjustments for sales. Debits and credits to adjust sales for FBA fees, Shipping, misc fees, etc. Same thing with COGS, what are the correct journal entries to adjust? Good video for overall summery, now we need more details and a deeper dive into actual action to take. Thanks.
Great suggestions, Frank. This video dives in deeper on recording sales: m.czcams.com/video/VjPD951tYtg/video.html And this one goes into more detail with COGS: m.czcams.com/video/cvS5fPHUVJg/video.html Let us know if these help!
Ready to offload your accounting to the gurus? Contact us here: ledgergurus.com/ecommerce-accountant/ecommerce-accounting-contact/. Also, check out our sales tax course here - ledgergurus.com/sales-tax-course-updates.
These should net out against each other. It doesn't matter if you choose an income account or an expense account but ideally you would pass these both through the same account.
I’m not sure I understand your question exactly, but if you use accrual accounting, you record the cost of the digital product as an asset, and when you resale it, the cost becomes COGS.
@@LedgerGurus When you offer a digital product, it can be purchased and downloaded many times, and really never goes out of your inventory. So determining how to account for the original purchase of the digital product is what I'm trying to categorize.
@@LedgerGurus OK, I'll double check with my tax accountant, too, but I wanted to have an idea of what I was talking about before I bring it up to her. Thank you for your help!!
Definitely agree! Ecommerce Bookkeeping is no easy task! Not understanding how ecomm bookkeeping works often lead to poor financial data and thus result to poor business decisions.
True. This is why we work so hard to help people understand how it should be done correctly, as well as the importance of outsourcing.
What would be really helpful is to tell us what the journal entries would be to make the adjustments for sales. Debits and credits to adjust sales for FBA fees, Shipping, misc fees, etc. Same thing with COGS, what are the correct journal entries to adjust? Good video for overall summery, now we need more details and a deeper dive into actual action to take. Thanks.
Great suggestions, Frank. This video dives in deeper on recording sales: m.czcams.com/video/VjPD951tYtg/video.html
And this one goes into more detail with COGS: m.czcams.com/video/cvS5fPHUVJg/video.html
Let us know if these help!
Wow, this is great! Thanks for sharing your knowledge.
Great content very helpful thank you Sir please share more videos on common mistakes usually made by bookkeepers
Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.
Thank you! Will do! There's lots more to come. :)
Can't wait until I need your help $$$!
Ready to offload your accounting to the gurus? Contact us here: ledgergurus.com/ecommerce-accountant/ecommerce-accounting-contact/. Also, check out our sales tax course here - ledgergurus.com/sales-tax-course-updates.
Can you guys do some video on dropping shipping?
We will put drop shipping on our list of videos to make!
thank you for this video!
This is soooooooooooo helpful!!!!!
Hello, how to treat the goods lost in transit in our books & the amount of compensation received from ecommerce company?
These should net out against each other. It doesn't matter if you choose an income account or an expense account but ideally you would pass these both through the same account.
Dear Sir, could pls tell me the meaning of FBA Fees. thx.
I'm sorry, but that's something you need to go to Amazon to get.
Do u help to grow e-commerce
Yes definitely! How can we help you?
How do I account for my e-commerce if I accept crypto?
We're probably not the best ones to ask since we don't have any crypto expertise.
thank you, whats your web site
www.LedgerGurus.com
💕✅💜♥️💯
Hello there
I am pursuing QuickBooks Online Accountant Pro advisor Certification.
Can you please advise an agency to get job there?
Good luck on your job search. There are a lot of good agencies. You can probably find the ones that are looking to hire on websites like Indeed.com.
How do you account for digital products that you purchase and can resell to multiple customers?
I’m not sure I understand your question exactly, but if you use accrual accounting, you record the cost of the digital product as an asset, and when you resale it, the cost becomes COGS.
@@LedgerGurus When you offer a digital product, it can be purchased and downloaded many times, and really never goes out of your inventory. So determining how to account for the original purchase of the digital product is what I'm trying to categorize.
@@curtishadley4114 okay that helps me to understand the situation better for sure. I believe you should record it as an asset and amortize it.
@@LedgerGurus OK, I'll double check with my tax accountant, too, but I wanted to have an idea of what I was talking about before I bring it up to her. Thank you for your help!!