Hi all
Does anyone doing accouting for your own ebay business? I've encountered several problems as I approached to it.
note: There are more than 10k transactions happening to my client per day (over 500 kinds) and I'm the only accounting person. So, its much easier to deal with them in bulk other than by each.
1 Cash basis vs Accrual basis?
Cash basis seems more reasonable as my client has so many transactions per day and I can hardly process them one by one. Also, revenue can be easily accounted when money received. However, my client needs some cashflow forecast which I think can only be derived throught Accrual basis?
Btw, what is the source of data you are using to measure income, Ebay selling history or Paypal incoming revenue?
2 When and how to recognise revenue?
If rely on accrul basis As far as I know, revenue should be recognised when realised. But how do we define realised in ebay selling business? When order placed? If so, how should I deal with customer refunds and orders withdrawed easily and percisely.
or When goods are shipped and payments received?
If rely on cash basis and recognize revenue when money received, its seems reasonable to use Paypal data. But here comes another question, Paypal does not provide detial for item sold, which means I cannot calculate COGS. How do you deal with COGS calculation? Even if I figured out a way to match them, again, how can I calculate them easily.
3 How to reconcile with paypal statment?
I've tried XERO and its very time consuming clicking reconcile button more than 10k per day. Also, transaction limits in Xero can be a potential problem.
4 Are there any suggested accounting softwares, tools or add-ons?
Godaddy seems too basic to handle my client's business.
Can anyone suggest a comprehensive and handy ebay sellers accounting kit?
Does anyone facing similar problems? How did you solve them?
Please contact me if you got any suggestions.
I can also be reached via LZKSMIB@gmail.com
Thanks
Mars
