Accounting for retail and ecommerce
Running a retail or ecommerce business means juggling inventory, margins, and a dozen different sales channels — while still trying to get a clear picture of what's actually profitable. The right accounting setup makes that clarity possible instead of painful.
We work with shops selling across Shopify, TradeMe, marketplaces, and physical stores — so we know where the numbers usually get messy.
Key accounting considerations
- Inventory valuation and stock reconciliations — getting your cost of goods sold right so gross margin is accurate, not guessed at
- Integrations between Shopify, Vend/Lightspeed, Cin7 and Xero — clean data flowing through instead of manual monthly wrangling
- GST on imports, landed cost calculations, and handling customs and freight through your accounts properly
- Sales tax across channels, including marketplace-facilitator rules for Amazon, TradeMe and eBay
Reporting focus
- Gross margin by product line or category — so you can see which SKUs actually pay the bills
- Stock turnover and ageing — which items are moving, which are tying up cash on the shelf
- Channel profitability — Shopify vs wholesale vs marketplace, with fees and returns factored in
- Cash conversion cycle — how long money is tied up in stock before it comes back as sales
Common challenges
- Overstocking. Buying too much of something that moves slowly ties up working capital and eats margin when it eventually gets discounted
- Treating gross sales as revenue. Platform fees, returns, and payment processing fees matter — net revenue is the number that should drive decisions
- Not tracking landed cost. The sticker price from your supplier isn't your actual cost once freight, duty and FX are included
- Missing the shift to multi-channel. The reporting setup that worked when you were Shopify-only breaks when wholesale or marketplaces come into the mix
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Running a retail or ecommerce business means juggling inventory, margins, and a dozen different sales channels — while still trying to get a clear picture of what's actually profitable. The right accounting setup makes that clarity possible instead of painful.
We work with shops selling across Shopify, TradeMe, marketplaces, and physical stores — so we know where the numbers usually get messy.
Key accounting considerations
Inventory valuation and stock reconciliations — getting your cost of goods sold right so gross margin is accurate, not guessed at
Integrations between Shopify, Vend/Lightspeed, Cin7 and Xero — clean data flowing through instead of manual monthly wrangling
GST on imports, landed cost calculations, and handling customs and freight through your accounts properly
Sales tax across channels, including marketplace-facilitator rules for Amazon, TradeMe and eBay
Reporting focus
Gross margin by product line or category — so you can see which SKUs actually pay the bills
Stock turnover and ageing — which items are moving, which are tying up cash on the shelf
Channel profitability — Shopify vs wholesale vs marketplace, with fees and returns factored in
Cash conversion cycle — how long money is tied up in stock before it comes back as sales
Common challenges
Overstocking. Buying too much of something that moves slowly ties up working capital and eats margin when it eventually gets discounted
Treating gross sales as revenue. Platform fees, returns, and payment processing fees matter — net revenue is the number that should drive decisions
Not tracking landed cost. The sticker price from your supplier isn't your actual cost once freight, duty and FX are included
Missing the shift to multi-channel. The reporting setup that worked when you were Shopify-only breaks when wholesale or marketplaces come into the mix