From start-up to exit, what type of accounting support does your e-commerce business need?

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Our founder lays down some golden advice in the latest episode of The eCommerce Profitability Show podcast.

Let’s get straight to it. With 50% of businesses closing their doors in the first year, it’s the ones that have their ducks in a row who make it past that milestone.

Our founder, Chloe, spoke about the support you need to best facilitate growth on The eCommerce Profitability Show. In it, she also includes specific things to look out for (including lessons she’s learned from running a business) and how to avoid them.

Now, if you’re an auditory learner, stick episode 11 on while you’re making your dinner. But, if you’re more visual, you can download the Nice Clear Guide on the Lifecycle of an e-Commerce Business instead (it’s free!).

Either way, we like key points, so here’s 8 of them from the episode.

  1. Plan for the business you want in the future. If you’re in the early stages of your business (start-up and growth), you won’t need a financial director (an FD) from the beginning but you will need support from the beginning

  2. If you want to scale, and scale sustainably, you do need an FD. If you’re thinking about scaling and/or selling, you do need a financial director (and the sooner the better)

  3. A virtual FD is affordable and essential. A virtual finance director helps businesses during growth phases by providing crucial financial oversight and insights without the overhead of a full-time role or team.

  4. Don’t promise the world to your customers. No matter your good intentions, if you can’t definitely do it, don’t!

  5. Xero can do a lot of things, but it can’t do everything. You’ll still need an accountant!

  6. An accountant and finance director are not one and the same. Whereas your accountant can manage your books and finances, a financial director will provide insight, growth support, and long-term strategy in line with your vision

  7. Make sure you’re aligned with whoever manages your numbers. Values and goals can differ per person and choosing the right team to oversee your money matters

  8. Common e-commerce pitfalls. Mismanaging inventory accounting, misunderstanding revenue as it appears in bank statements, and misaligning sales with their actual occurrence, are regular issues in the industry.

If you’re an e-commerce entrepreneur, we recommend subscribing to the The eCommerce Profitability Show. It lays down good insight, week by week, from different industry experts.

If you’ve got big entrepreneurial dreams and a good soul, you could be our kind of client! Start by filling out our form.