We continue to discover the five remaining steps in accounting which small businesses should focus on. Imagine you own a Shopify shop until your store develops and get big enough, you must make all steps done well.
6. Payment method
You must find a payment method for your shop. This method is really suitable for your business. Shopify offers Shopify Payments, which accept payments through credit card. If you don’t want to use Shopify Payments, you use a merchant account or the third party like PayPal. The merchant account is a kind of bank account. It lets you accept the credit card from customers. Remember that you must pay fees when you use tools supporting payment activities.
7. Sales tax procedures
This is a problem impeding e-commerce sellers. Unlike brick and mortar shops, many Shopify stores sell products for foreign customers or buyers in other states and provinces. You must look into sales tax procedures. Follow them and avoid breaking any rules.
8. Tax obligations
Tax obligations are an important factor. If only you own the business, you can claim income on the personal tax return. If you are a member of corporations, your income is taxed as an employee. According to Shopify blog, “Self-employed people need to withhold taxes from their income, and remit these to the government in lieu of the withholding that an employer would normally conduct.”
9. Gross margins
To get more revenue, you must increase gross margins. To calculate gross margin, you know the costs to manufacture a product. To get the result of gross margin, you must have the cost of goods sold, which is direct costs to produce products sold by a company. Gross margin is the total sales revenue after deducting direct costs.
10. Investigate methods
When you start with a small new business, you use a simple spreadsheet in order to manage your accounting books. If your company develops, you consider applying advanced tools. Find solutions to save up the time spending on accounting and costs.