Accounting for Ecommerce Businesses: 61 Resources that Could Save You +$1.3M

Scaling an ecommerce business is exhausting. And it only gets worse if you’re struggling with finances.

Your day-to-day becomes an endless scramble to make ends meets. Month over month, you find yourself facing the same problems and replaying the same questions:

For the past 10 years, I’ve been busy making mistakes, testing, and succeeding in scaling multiple ecommerce businesses. I had the same questions hovering over my head and I needed help.

Ecommerce financial literacy has a direct causal relationship with your ability to produce profit. So, I’ve kept a running list of tools and resources that have guided me.

They are now here for you to find what you need to assist you with your ecommerce success.

1. Study 📚 Accounting Books for Business Owners

Simple Numbers, Straight Talk, Big Profits! 4 Keys to Unlock Your Business Potential

Simple Numbers is a small business finance guide geared at helping you increase profitability. It teaches you how to use key indicators as the foundation for better business decisions that will support a $5 million scale.

Straight to the point and jargon-free, Greg Crabtree and Beverly Blair Harzog use real-world scenarios to show you a better way to understand your finances.

How Finance Works: The HBR Guide to Thinking Smart About the Numbers

In How Finance Works, Mihir Desai provides you with the knowledge and skills you need to fully understand finance.

Desai makes use of case studies, exercises, and visuals to help you learn how to analyze your numbers and clearly communicate your findings.

Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

Building on a formula — because I love formulas— this team presents the essentials of finance for entrepreneurial managers.

After training thousands of professionals, Financial Intelligence for Entrepreneurs uses hands-on activities to help you develop a deeper understanding of financial data

Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Best-selling author Mike Michalowicz developed a behavioral approach to accounting and details it in Profit First.

Just like the title suggests, Michalowicz shows you how to take your profits first and allocate the remainder for expenses — a total flip to the traditional financial playbook.

Stark Naked Numbers: Uncover Your Financials, Unlock Your Cash, and Unleash Your Profits

If you believe traditional accounting is too in the weeds for you, Stark Naked Numbers will give you a practical approach for learning exactly what you need to know — the bare essentials.

It’s a stripped-down approach perfect for beginners or anyone who want a refresh on how to keep the main things, the main things.

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

Following the successes of eight CEOs, William N. Thorndike’s The Outsiders shares their strategies for increasing performance in their companies.

This book is written for executive leaders, in particular. But there’s enormous value no matter what your title or company size happens to be.

2. Read 📰 Ecommerce Accounting Blogs & Resources

Unit Economics Ecommerce Calculator: Mastering Costs, LTV & Profit

What does it take to get one click (V), acquire a single customer (CR), retain that customer (LTV), and deliver one product (VC)?

It starts with a line-item breakdown of everything that goes into getting what you sell into the hands of your customers — unit economics.

What Startups Can Learn From Amazon’s Cash Machine

Understand how to scale faster by generating more cash flow from a single source of profit.

Thomas Meredith, Dell Computer Corp. & Performance Measurement

Don’t let the date or length fool you. A quick read that details how speed and balance are the secret weapons to creating value. You’ll learn how to measure performance and risk efficiently.

Even better, there’s another formula: DSO + DSI – DPO = CCC

Introducing the Lightspeed Standardized Ecommerce Model

Although its subtitle contains the words “simplest possible financial template,” the Excel files you’ll find here can look intimidating. In short, the model centers on customer cohorts. And, it’s shaped the backbone of our own forecasting and revenue models at CTC.

Ecommerce Demand Forecasting: Free Template + ‘Cake’ Revenue Model

Building off Lightspeed’s template, here I breakdown our “three-layered cake revenue model.” Map and predict the profitability of your business with ecommerce demand forecasting and a template + video guide.

Shopify Accounting and Bookkeeping Best Practices for Ecommerce Businesses

A detailed guide on everything that ecommerce businesses using Shopify need to know for managing your profits and cash flow.

3. Watch 👀 Videos, Warning My Face Is on Some of Them

Variable Costs & Four-Quarter Accounting

What Is the Cash Conversion Cycle?

How to Forecast Ecommerce + “Cake”

Ecommerce Valuation: Financial Modeling

Unit Economics of Ecommerce Growth

4. Listen 👂 Ecommerce Podcasts & Business Gems

Why Revenue Is A Vanity Metric (And What To Watch Instead)

This podcast discusses counter-intuitive wisdom and financial truths you can start using immediately to accelerate ahead of the competition.

Mission, Magic, Money, and the One Formula You Must Understand for Ecommerce Growth

I share my best practices, visions, and advice on how to grow a business’ profits and drive progress.

Margin is Fak‪e‬

Andrew Faris discusses understanding and acting on your gross margin.

Scaling an Ecommerce Business and Selling on Amazon with Kiri Masters

Wayne Richard chats with Kiri Masters about setting up a business for scaling success, self-publishing books, and awesome tips on establishing your business.

5. Fund 🤑 Best Ecommerce Business Funding & Loans

Brick-and-mortar banks are important for every business but with our new norms, most of our banking needs can be handled over the net. Whether you need a simple bank account, credit card, or business funding, you can find cash flow management help below.

Clearbanc

As the world’s largest ecommerce investor, Clearbanc provides advertising capital in exchange for a revenue share until they’re paid back their principal plus a 6% fee.

While the cost of capital is higher than traditional lending, I love that they don't take equity or demand a personal guarantee. Their predictive models also do a great job of not allowing you to bite off more than you can chew.

Wayflyer

Revenue-based financing for ecommerce brands.

If data analytics is not your core competency, Wayflyer has a team who will help audit your account for you and suggest improvements. This helps you grow more efficiently while obviously helping them as you build a relationship as a customer for the long run, borrowing more money to continue growing together.

Settle

This is our favorite inventory financing option.

Setting up an account and getting approved is super simple; and for a 1% premium on your supplier invoices, they’ll pay them for you, and you can pay them 30 days later. If you need another 30 or 60 days, no problem, just tack on another 1% per month.

Brex

A credit card with traditionally higher limits and no personal guarantee. If you can get your store approved, it’s a no brainer.

Cerebro Capital

If your ecommerce store has hundreds of thousands of dollars in profit, Cerebro can help get you the best financing available. They’ve built a commercial loan software that makes sourcing loans really simple. Their team is super knowledgeable and will be able to tell you your options pretty quickly.

Assembled Brands

A well known leader in the ecommerce lending space, they provide revolver loans collateralized with inventory or AR.

6. Optimize 📈 Accounting Software & Bookkeeping Tools

If you’re into DIYing, or just have to out of necessity, there are a wide variety of accounting systems and softwares available to help you create financial statements, like income statements and balance sheets.

Some even include self-guided bookkeeping tasks and budgeting assistance.

Order Metrics

Order metrics help you better understand your unit economics.

Xero

Xero is an easy-to-use ecommerce accounting software with third-party apps for inventory, point of sale, and more.

Quickbooks Online

QuickBooks allows you to create sales receipts, sales orders, invoices. Included are inventory and cash flow tracking features that seamlessly integrate with your other accounts.

A2X for Shopify

Simplify your Shopify and Shopify POS accounting with A2X linked to Xero or QBO.

Finale Inventory

Multichannel inventory management for your growing business.

Float

Cash flow forecasting for your ecommerce business.

Gusto

All in one people platform for Payroll, Benefits, & HR.

Just Works

Just Works is an all-in-one people platform for payroll, benefits, & human resources.

7. Follow 🐦 Leaders in Ecommerce Funding & Finance

Michelle Romanow

The co-founder of Clearbanc, Michele is a force in the ecommerce lending space. She’s also a judge on Dragons’ Den, the Canadian Shark Tank.

So today, we are opening this opportunity up to the whole world. Let us be your rich uncle. We’ve built ClearAngel to provide founders not only with capital but strategic advice and the right connections to succeed. https://t.co/bwRLJJeQEG

— Michele Romanow (@MicheleRomanow) February 25, 2021

Reece Wabara

As the CEO of manieredevoir.com, Reece is an operator who shares transparently about her journey and combines real world excellence with financial wisdom.

January ✅ pic.twitter.com/tb9Dy4VoAJ

— Reece Wabara (@ReeceWabara) February 1, 2021

Meryl Johnston

Meryl is the CEO of Bean Ninjas and is living and breathing ecommerce accounting every single day.

41% of eCommerce businesses have done nothing to prepare for an economic crisis. Are you set up to come out on top?

Take our survey to find out. https://t.co/buJaF6drZp

Closes June 5. #ecommerce #recession #survey pic.twitter.com/8L5fcvMq0K

— Meryl Johnston (@meryl_johnston) May 26, 2020

Magdalena Kala

Magdalena Kala is a wonderful consumer investor who has brilliant insights on markets, capital and more.

0/ “What do you mean when you say you’re a ’consumer investor’?”

I get asked this surprisingly freq, and my definition of “consumer” is broader than typical, so here are the 10 key things that define my professional interests/identity – my consumer investment philosophy 👇

— mags | doubledown.show 🔥 (@magdalenakala) January 11, 2021

Jay Vas

Jay is an entrepreneur and investor, based in Toronto, who puts together fire threads on finance like the ones below. You can read his personal blog here.

Last week @theSamParr shared Gymshark's financials. They're very impressive, but what stood out the most to me was the £53m cash pile.

How could a bootstrapped eComm company w/ rapid growth have this much cash?

Answer: a negative cash conversion cycle.

Here's how it works 👇 pic.twitter.com/yqz8pLCyQQ

— Jay Vasantharajah (@jayvasdigital) July 16, 2020

Jeff Sands

Jeff Sands is the author of the Corporate Turnaround Artist. His Twitter consists of a ton of finance related tweets and simple underappreciated gems like below.

Retweeting my own comment, reminded daily that this is probably the most accurate thing I've ever said. https://t.co/jcm77XgIkQ

— Jeff Sands (@jeff05251) May 14, 2020

Digitally Native

While Nate is not specifically a finance expert he is a seasoned ecommerce operator who’s constantly putting out thoughtful work.

Early Stage DTC Brands:

Build a framework for the opportunity cost of your time and resources

Deciding what not to do is >= deciding what to do

— Digitally Native (@digitallynativ) March 24, 2021

Bill D’Alessandro

Bill D’Alessandro is the CEO of Elements Brands and has some deep expertise around leveraging debt facilities and SBA loans to grow.

Holy smokes what a year.

It finished with a bang - today we closed an 8 figure investment in @ElementsBrands, giving us lots of dry powder to continue acquiring DTC CPG brands in 2021.

Brand owners - hit me with a DM if you want to know what it's like to join us here at EB. pic.twitter.com/eJYRDvDQTs

— Bill D'Alessandro (@BillDA) December 31, 2020

Monish Datta

Monish Datta is a marketer with multiple finance degrees. He offers great insight into the relationship between each discipline.

“There is a moment, a cusp, when the sum of gathered experience is worn down by the details of living. We are never so wise as when we live in this moment.”

- Paul Kalanithi, When Breath Becomes Air

— Monish (@moenichedee) October 20, 2018

Josh Rodarmel

Josh Rodarmel runs all of our mergers, acquisitions, and finance activity for our parent company Dream Labs.

This is a great tweet to wake up to. https://t.co/osh4PpNqtl

— Josh Rodarmel (@JoshRodarmel) May 9, 2020

Andrew DeSouza

Andrew DeSouza is the CEO of Clearbanc. He speaks to all things lending, ecommerce finance, and fintech.

Update: In January, we funded 17 business through #clearangel. In Feb, we funded 25. One week into March, we've already funded 27 startups and we’re just getting started! LFG! 🚀

— Andrew D'Souza (@andrewdsouza) March 7, 2021

Wayne Richard

Wayne Richard is a partner at Bean Ninjas, CFO in Residence ADmission, and vCFO to ecommerce operators looking to achieve freedom through stress-free business finances.

1/ Staying compliant at tax time can be especially frustrating for #eCommerce entrepreneurs.

Furthermore, income taxes are one of the largest expenses for an eCommerce business outside of inventory.

So here are some highlights from our recent @beanninjas eCommerce masterclass

— Wayne Richard (@evrydaysprhero) March 23, 2021

8. Hire 🤝 Accountants, Service Providers & Bookkeepers

Ecommerce companies need CPA professionals who can provide finance management and bookkeeping services. Below are a few recommended accounting service providers.

Bean Ninjas

Bean Ninjas is an awesome team of ecommerce growth accountants. Wayne currently serves as the CFO in residence in our ADmission Slack community and has been super helpful.

Wertz & Co.

Wertz & Co. is both my personal and CTC’s accounting firm. One of their partners Katie Sterling has been an absolute rock for us for years.

MainStreet

MainStreet qualifies startups for 200+ unclaimed tax credits.

Propeller Industries

Offers a single point of accountability for all areas of financial management.

The Tax Valet

Fractional CFOs and finance teams that have worked with some of the biggest names in ecommerce.

EcomCPA

Jeremy and team specialize in tax returns for e-commerce, retail, individuals and real estate businesses.

Empire Flippers

Marketplace for buying and selling online businesses

Quiet Light

Marketplace for buying and selling online businesses

FE International

Marketplace for Buying and Selling online businesses

CAPTARGET

If you’re in the market to buy a brand, and don’t know where to start, CAPTARGET will connect you with a private equity space that recommends businesses that are often worth buying. They charge a low flat fee each month to utilize their software and no success fees.

Centurica

Once you find a business to buy, don’t do it until you have Centurica perform due diligence on it. If you’re looking to sell your business in the next year or two, have Centurica perform an audit on it and tell you how to increase your valuation.

Stradling | Stradling

They’re not cheap, but they know what they’re doing and will get it done correctly. Kyle Leingang is a Partner and quarterbacks all things legal for us. He’s fast, efficient, and trustworthy.

9. Learn 💡 Ecommerce Accounting & Finance Courses

ADmission has a wealth of accounting and finance information that is condensed in easily digestible courses.

Members get exclusive access tools:

• Inventory Demand Planning
• 5 Ecomm Accounting Mistakes to Avoid
• Building Your 2021 Projections | Part 1 & 2, Finance + Forecasting Class

10. Reveal 😬 BONUS on My Own Fiscal Failures

I was able to compile this resource guide because I’ve made a ton of mistakes during my entrepreneurial journey. Two, in particular …

Ages ago, we launched a baby brand called Opening Day. When it failed, we had to tuck our tails and inform our shareholders that we were closing down operations.

My co-owner, Josh Rodarmel, sent them this exact email:

And the failures don’t stop there.

In 2019, we paid $44,566 on one lease buyout. Then, the pandemic hit in 2020. Our second buyout burned $702,432 … plus another $597,311 to the pile for the cost of renting a vacant building.

Grand total? $1,344,309 🤢

I have torched a Rockefeller’s fortune on lease buyouts.

Easily my worst financial decisions as a leader.

— Taylor Holiday (@TaylorHoliday) March 10, 2021

Connect 🌐 Share Resources

Keeping track of your ecommerce business finances can pile on more work than you initially bargained for but I hope this resource list will provide you with the help you’ve been looking for. 

One more bonus: if the resources above aren't enough, check out 1-800-D2C. Save hours on research, discover the tools behind the top brands and redeem best-in-market discounts on them.

Finally, I would love for this to be an ongoing, living, and breathing set of resources. If there is something you have read, watched, or heard that brought you immense value, share it with me and I will add it.

If you found it helpful, then grab the full guide and share to save an ecommerce business today.

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