UK
  • Singapore
  • Hong Kong
  1. Osome Blog UK
  2. Best Accounting Tools for E-Commerce Businesses

Best Accounting Tools for E-Commerce Businesses

Today, there are a lot more options to help e-commerce businesses keep track of the boring but necessary information like invoices, cash flow, to help company owners maintain a detailed financial record for when tax season comes.

For small e-commerce businesses with little time or expertise, not making the right choice would be costly and time-consuming. However, there are so many options today. A cheaper option is great but would miss out on some features that you would find useful in your daily operations– like inventory management and payroll.

To help you with your selection, we’ve taken a look at the best accounting tools for E-commerce companies in the market:

Features Sage Xero QuickBooks ZohoBooks Osome
Personal Accountant & Bookkeeper No No No No Yes
Monthly Management Reports Yes Yes Yes Yes Yes
Calculate and submit VAT returns Yes Yes Yes Yes Yes
Multi-currency support Accounting plan only Premium plan only Yes Yes Yes
Payroll Optional, extra charges Optional, extra charges Optional, extra charges Optional, third party integration Yes
Cloud-based Yes Yes Yes Yes Yes
Cost per month

Accounting Start: £12

Accounting: £26.40

Starter: £10

Standard: £22

Premium: £27.50

Essentials: £18

Plus: £27

Basic: £6

Standard: £12

Professional: £18

Starter: £145

Booming: £245

Rocking: £345

  1. Sage

  2. Sage

    Sage has been around for over thirty years. It has established itself as an industry standard for user-friendly accounting software packages. Their accounting software makes it easy to manage income and expenses, unlimited bank transactions, and even generate reports for better decision making.

    Their Accounting Start plan includes cashflow statement service and bank account integration. You can record income and expenses as well as calculate and submit HMRC VAT returns. However, it only offers one user support.

    Upgrade to their Accounting plan for unlimited users, inventory management, cash flow forecasts and multi-currency invoicing. The Accounting package offers all of the above as well as unlimited user collaboration, inventory management, cash flow forecasts, quotes and estimates, purchase and multi-currency invoicing among others.

    1. Xero

    Xero

    Xero deals with all aspects of eCommerce bookkeeping, from generating invoices and quotes to reconciling your bank balance.

    For the Starter plan, you'd be restricted to sending a maximum of five invoices, entering five bills, or reconciling only 20 bank transactions. As you have more bank transactions, you’d need to pay more. However, you would still need to do your accounting work on your own. If you were to use Xero for accounting, you would have to manually go to Xero, choose the ‘Accounts’ tab, and press ‘reconcile’ each time.

    1. Intuit QuickBooks

    Quickbooks

    QuickBooks Online has a reliable and cost-effective Quickbooks eCommerce integration. It also has the benefit of being based on the framework of its global PC-based bookkeeping system. It can also integrate with shopping cart platforms like Shopify, and other aspects of your e-Commerce business.

    The Essentials and Plus plans are for small e-commerce companies which have registered for VAT registered companies only. For the Essentials Plan, you can calculate and file VAT, manage bills and payments as well as CIS deductions. The Plus plan includes all of the above plus support to create and purchase orders, manage stock and track costs by project, location and budget. Up to 5 users can use this plan.

    1. ZohoBooks

    Zohobooks-1

    Zoho Books is one of the cheapest accounting software around, with a variety of features. A unique one is that you can send invoices in 13 different languages. Good for if you have customers across the world.

    The Basic plan offers the option of two users, bank reconciliation, custom invoices, expense tracking, recurring transactions, and automated workflows. Their Professional plan allows you to track inventory, create sales orders, bills and vendor credits. However, they lack an integrated payroll which can be an issue if you are looking for an all-in-one accounting software.

    1. Osome

    Osome Webpage in UK

    Relatively new on the market, Osome is your personal accounting assistant within your phone or your laptop, assisting you around the clock. As you can see in the table above, Osome’s premium price is because you get the perks of having an accountant and an accounting app rolled into one. The accountants are experienced in dealing with e-commerce businesses as they understand that each platform you are selling on has different reports. You simply hand over all your accounting tasks to Osome and they will deal with it for you, which makes it really useful for new e-commerce business owners in the UK and Europe.

    Osome uses Xero as their bookkeeping software. If you were to use Xero on your own, you would have to manually go to Xero, choose the ‘Accounts’ tab, and press ‘reconcile’ each time. Osome connects the e-commerce platform you’re using to Xero and upload the data every 24 hours automatically.

    Key Features:

    • AI-powered chat to ask questions to your personal chartered accountant and bookkeeper 24/7 round-the-clock
    • Reads documents from any platform and produces reports and tax returns for you
    • Daily bookkeeping with consolidated numbers for each of your SKU, product group and market daily
    • Monthly management reports for Profit & Loss, and Cash Flow
    • Calculate and file taxes in the countries you are selling your products
    • Secure bank-level encryption for your documents
    • Direct connection with Xero and your bank to exchange data securely

    Check out Osome’s accounting services for E-commerce companies here.

    Making the Best Accounting Software for eCommerce Choices for Your Business

    No two businesses are the same and where your business is right now is not where it will be in a year’s time. In making the right decision for your business, consider the cost, if the features suit your operations, the user interface, whether you are able to access it on the go, and your level of accounting expertise.

    Choosing the right accounting software for your business will save you time and money while allowing you to sell more products.

Share this post:

Tips to run your business smarter.
Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

You might like it

E-commerce

Upselling and Cross-Selling Strategies for E-Commerce Stores

We are inundated daily with countless ads throughout our day, both online and offline. As an e-commerce store retailer, one of the challenges that you may face is trying to get your products and message across to prospective customers.

E-commerce

A 2021 Holiday Sales Checklist for E-commerce

Although the sales period will mean that your customers’ shopping carts will be busier, this also brings about its own set of challenges for your online business. Follow our holiday season checklist to ensure your business is well equipped for the shopper surge.

E-commerce

Types of E-commerce Business Models

The e-commerce business in the UK is booming. In 2021, Statista reported that online marketplaces has been flourishing with projected sales of £80.678 million. In addition, the global pandemic has accelerated the digital economy.

Accounting

Business Records: A Guide for New E-commerce Owners

While recordkeeping can be challenging, having clear records of your employees, expenses, income, accounts and tax documents can help you monitor your company's progress and give you peace of mind.

Running My Business

Things To Know Before Renting Office Space in the UK

As a business owner, having your own space to run your business can be an exciting thought. However, renting your own office space is a huge decision, and one that requires much consideration and planning before implementation.

E-commerce

Digital Payment Trends To Take Note Of

Digitising payment methods will help you take payments quickly. Many entrepreneurs are now running an online business and it’s not possible to make offline payments or cash on delivery every time. At the same time, you have to stay on top of current trends and meet your customer’s needs.

E-commerce

How To Create an Invoice When Selling on Amazon

Startup in the UK, setting up shop in Singapore or expanding your e-commerce business in Hong Kong? This article helps Amazon sellers who are finding out how to create, access and share invoices on Amazon.

E-commerce

12 Ways To Get More Traffic to Your Online Store

When your website is finally live, you may want to look at these marketing strategies to bring potential customers to your online store.

Running My Business

How the Increase In National Insurance Contribution Rates Will Impact Your Business

After making it through the pandemic, how will the new Health and Social Care Levy (HSCL) affect your bottom line? Many small businesses will feel overwhelmed. But you can take control by understanding the immediate changes and preparing for the future consequences for your business.

E-commerce

The Ultimate Website Design Guide for E-commerce

If you’re looking to improve your e-commerce page and improve sales, you might want to learn the fundamentals of how to design a good website.

Entrepreneur's Bootcamp

Invoice Best Practice for SMBs in the UK

In this article we’ll unpack some best practice tips to help you improve your invoicing and streamline your biz to take the pressure off your cash flow. Take a look.

Incorporation

A Guide for EU Companies Expanding to the UK: What You Need To Know

Things might have changed after the transitional period, but that doesn’t mean expanding to the UK is not possible. In this guide, we will show you some of the things you need to know when you are planning to expand your business to the UK

Tips to run your business smarter. Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

We’re using cookies! What does it mean?