Tag Archive for: Shopify

The Importance of Bookkeeping Services in an Uncertain Economy

May 9, 2025/by Team

Why Small Businesses Need Bookkeeping Services in a Changing Economy

For many business owners, the economy feels uncertain. With unexpected market shifts, rising tariffs on outsourced goods, and steadily increasing costs, the path forward may feel uncertain. In moments like these, the pressure of every decision intensifies, yet the expectations remain. You are still expected to lead with confidence, adapt quickly, and keep the business afloat.

In this environment, having reliable bookkeeping services becomes a strategic necessity, allowing you to operate from a place of control. When financials are accurate, timely, and accessible, you gain the clarity to respond with intention. Bookkeeping is now a steady source of insight that supports sound judgment, measured growth, and long-term resilience.

What is the role of bookkeeping during a changing economy? Let’s explore how it can directly benefit your business. Here are five key advantages that make bookkeeping an invaluable asset, especially in today’s uncertain economic climate.

Identify Financial Trends for Proactive Management

When your books are consistently and accurately maintained, patterns begin to surface. Shifts like rising vendor costs, delayed customer payments, or narrowing profit margins rarely announce themselves with clarity. Instead, they appear subtly, through numbers that begin to drift off course.

Bookkeeping brings those numbers into focus. Categorizing expenses, tracking receivables, and reconciling accounts regularly creates a living record of your business activity. This allows you to compare performance month over month, spot anomalies, and flag inconsistencies before they turn into larger issues. Early visibility means you’re not reacting after the damage is done, but you are adapting in real time to protect your margins and maintain stability.

Financial Preparation for Loans, Grants, and Investors

Loans, grants, investor inquiries, or relief programs require detailed financial documentation. Incomplete or outdated books can delay or disqualify you from accessing these resources. Well-maintained records provide a clear picture of your business’s financial health, enabling you to confidently present your case to investors or lenders, and respond quickly when time-sensitive opportunities arise.

Visibility To Improve Business Decision Making

In uncertain times, every business decision carries more weight. Whether you’re considering a new hire, adjusting pricing, or reworking your inventory strategy, understanding the financial impact in real terms, not broad estimates, is imperative.

Bookkeeping provides that clarity by tracking and categorizing every transaction in your business. You see exactly how much revenue is coming in, where money is going out, and how those numbers shift over time. This level of detail allows you to monitor trends, spot inefficiencies, and plan based on facts. Accurate books connect the dots between your operations and your bottom line, so every decision is backed by real financial insight.

Maximize Your Tax Savings with Accurate Bookkeeping

A strong tax strategy begins with accurate books. When every transaction is recorded and categorized throughout the year, you enter tax season prepared, with clear documentation, organized records, and complete visibility into your financials.

This foundation allows your CPA to move beyond basic filings and focus on optimizing your tax position. Whether it’s identifying eligible deductions, planning for quarterly payments, or aligning with your long-term financial goals, strategic decisions are only possible when your books are current. In a shifting economy, this level of preparation becomes a financial advantage.

Save Time and Grow Your Business by Outsourcing Bookkeeping Services

Bookkeeping requires consistency, precision, and time, pulling focus from the areas where your leadership creates the greatest impact. Delegating this responsibility to a trusted partner allows you to gain those hours back and reinvest them where they matter most: serving your customers, supporting your team, and shaping your next phase of growth.

With xendoo Accounting, Bookkeeping, and Tax as your partner, your books are kept accurate and up-to-date by a team that delivers accurate financials on time, every time. Additionally, you gain exclusive access to our advanced technology platform, Insights XP. This powerful tool provides real-time insights into your financial landscape, enabling you to seamlessly track cash flow, monitor expenses, and evaluate your business’s financial health. You will always remain fully informed, empowering you to lead with clarity, focus, and forward momentum.

Track your net income, revenue, and expenses month-to-month with Insights XP.

Conclusion

The ability to manage cash flow during market shifts with confidence is essential to your business’s success. By prioritizing reliable bookkeeping, you empower yourself with the clarity, insight, and preparedness needed to make informed decisions, seize opportunities, and stay aligned with your financial goals.

The Business Owner’s Guide to Paying Less in Taxes

March 4, 2025/in Accounting, Small Business Tips /by Team

Why Business Tax Planning Matters

Welcome to the ultimate Business Owner’s Guide to Paying Less in Taxes. Many small business owners overpay in taxes simply because they miss out on deductions, tax credits, and strategic tax planning opportunities. Whether you’re a freelancer, eCommerce entrepreneur, or agency owner, this guide will help you understand how to legally lower your tax bill while keeping your financials in order.

Without a solid business tax planning strategy, you risk paying more than you owe, missing deductions, or worse—triggering an IRS audit. The good news? Strategic tax planning and accurate bookkeeping can dramatically lower your tax bill while keeping your business compliant.

What’s New for 2025 Tax Laws?

Each year, tax laws change, affecting how much businesses owe. Keeping up with these changes ensures that small business owners claim every available deduction. Here’s what to watch for in 2025:

Inflation-Adjusted Tax Brackets – The IRS has adjusted tax brackets to account for inflation, which may reduce your overall tax burden.
Section 179 Deduction Limits – Higher limits allow businesses to deduct more on equipment, software, and business-use vehicles.
Changes to Business Meal Deductions—The temporary 100% meal deduction has expired and will revert to 50%.
R&D Tax Credit Expansion – If your business invests in technology or innovation, you may qualify for new business tax credits.

Need help staying compliant? Catch up on bookkeeping before tax season to ensure accuracy and maximize deductions.

How to Reduce Your Small Business Tax Bill

1. Keep Accurate Financial Records

The biggest mistake small business owners make? Not keeping their books updated. Without proper financial records, you can’t claim business tax deductions or justify expenses to the IRS.

Use a bookkeeping service to automate tax preparation and reduce errors.
Separate business and personal expenses to avoid IRS scrutiny.
Track mileage, home office deductions, and other tax-deductible expenses throughout the year.

Keeping organized financial records ensures you never miss a deduction when filing your business taxes.

2. Choose the Right Business Structure

Your business entity impacts how much you owe in small business taxes:

LLCs & Sole Proprietors – Pay self-employment taxes but qualify for pass-through tax deductions.
S-Corporations – Can reduce self-employment tax by splitting income between salary and distributions.
C-Corporations – Benefit from a flat 21% corporate tax rate but may face double taxation.

Not sure which business structure is best for tax savings? Talk to a tax expert to determine the right option.

3. Leverage Business Tax Credits

Tax credits directly reduce your business tax bill dollar-for-dollar. Some of the most valuable small business tax credits include:

R&D Tax Credit – You may qualify if your business invests in software development, technology, or innovation.
Work Opportunity Credit – Hiring employees from certain targeted groups can earn your business tax credits.

Utilizing available tax credits is a key tax-saving strategy that many business owners overlook.

4. Maximize Your Business Tax Deductions

Many small business owners leave money on the table by failing to deduct all eligible expenses. Deduct these costs to reduce your taxable income:

Business Insurance – Protect your company while lowering your tax burden.
Office Rent & Utilities – Deduct costs for maintaining your office or workspace.
Employee Salaries & Benefits – Payroll and employee benefits are fully deductible.
Marketing & Advertising Costs – Business advertising, website expenses, and social media ads qualify.
Home Office Expenses – If you operate from home, deduct a portion of rent, utilities, and internet costs.

Maximizing business tax deductions helps reduce your overall tax liability and keeps more money in your business.

Top Business Tax Deductions You Should Claim

1. Section 179 Deduction

Deduct up to $1,160,000 2025 for business-use equipment, software, and vehicles.

2. Business Meals & Travel

Claim 50% of meals with clients and business partners.
Deduct 100% of travel expenses for business-related trips.

3. Retirement Contributions

Contribute to a SEP IRA or Solo 401(k) to reduce taxable income while building long-term savings.

4. Health Insurance Premiums

Self-employed? Deduct 100% of health insurance premiums for yourself and your family.

By claiming every available deduction, your business can significantly reduce taxable income.

Avoid These Costly Tax Mistakes

Avoiding common small business tax mistakes can prevent penalties and lost deductions:

Mixing Business & Personal Finances – Use a dedicated business bank account for transactions.
Forgetting to Pay Estimated Taxes – If you’re self-employed, make quarterly tax payments to avoid penalties.
Missing Tax Deadlines – Keep track of IRS filing deadlines to prevent late fees.
Ignoring Bookkeeping Until Tax Season – Catch-up bookkeeping ensures accurate filings and maximized deductions.

Avoiding these mistakes ensures your tax filings are accurate and free from IRS scrutiny.

How xendoo Helps You Pay Less in Taxes

At xendoo, our tax experts and CPAs help small business owners minimize tax liability and streamline business tax preparation. Here’s how we make tax season stress-free:

Done-for-you bookkeeping & tax prep – Keep financials organized year-round.
Catch-up bookkeeping for past-due taxes – No more scrambling at tax time.
Tax-saving insights to maximize deductions – Ensure your business gets every eligible write-off.
Hassle-free tax filing with real experts – Compliance and accuracy guaranteed.

Keep More of Your Profits in 2025

This Business Owner’s Guide to Paying Less in Taxes has shown that overpaying is optional. Without a solid strategy, you risk paying more than you owe, missing deductions, or worse—triggering an IRS audit. This Business Owner’s Guide to Paying Less in Taxes helps ensure you don’t overpay. With smart tax strategies, you can legally reduce your tax bill and keep more profits. Taxes are unavoidable, but overpaying is optional. By maintaining organized financial records, claiming deductions, and working with tax professionals, your business can legally reduce its tax bill and keep more earnings.

Want expert help reducing your business taxes? Schedule a free consultation today.

BBB + xendoo Webinar: Small Business Tax Write-Offs

February 13, 2025/in Accounting, Small Business Tips /by Team

Key Takeaways from the Webinar

Our CEO and founder recently joined the Better Business Bureau (BBB) of South Florida for a webinar packed with practical accounting, bookkeeping, and small business tax write-off tips for small business owners. Whether you’re a startup, an e-commerce entrepreneur, or scaling your professional services, this webinar offers valuable financial advice to help you manage your business finances effectively. Below are some key highlights—but this is just the beginning. Watch the entire webinar for even more insights!

How to Vet a CPA for Your Small Business Accounting Needs

Choosing the right CPA can significantly impact your business’s financial health. Here are some essential questions to ask:

Experience Matters: Ask how many years they’ve been in business and how many business tax returns they file annually. CPAs handling mostly personal tax returns might miss key business deductions.
Industry Expertise: Ensure they are familiar with your specific industry, whether e-commerce, professional services, or manufacturing.
Transparent Pricing: xendoo’s corporate tax returns start at $1,200, while market rates range from $1,500 to over $10,000—know what you’re paying for.

Commonly Overlooked Small Business Tax Write-Offs

Many small business owners miss out on valuable tax deductions. Here are some you should consider:

Travel Expenses: Business-related travel, even part of a personal trip, is deductible.
Section 179 Deductions: Large equipment purchases can significantly reduce your taxable income if your business is profitable.

Maximizing Your Tax Savings with Small Business Tax Write-Offs

Beyond deductions, there are strategic moves to save more on taxes:

Track Personal Expenses: Any business-related expenses paid from personal accounts should be reimbursed and documented monthly.
Augusta Rule: Rent your home to your business for up to 14 days per year, tax-free.
S-Corp Election: Businesses earning over $30,000 in profit should consider an S-Corp election to save on self-employment taxes.

Financial Health Tips for Small Businesses

Staying financially healthy is about more than just tax savings:

Monthly Financial Reviews: Regularly review your financial statements to keep your business on track.
Checks and Balances: Separate financial roles within your team to prevent errors and fraud.
Plan Early for Taxes: Start tax planning in Q4 to maximize deductions and reinvest in your business before year-end.

Preserving Cash Flow and Managing Business Finances

Cash flow management is critical to small business success. Here’s how to keep it strong:

Avoid Credit Terms: Require upfront payments or credit card transactions to maintain steady cash flow.
Manage Inventory Smartly: Don’t overstock—write off or donate unsellable inventory.
Understand Your Cash Needs: Know how much cash your business needs to operate and secure a line of credit for emergencies.

Watch the Full Webinar

Want more in-depth small business accounting tips and financial strategies? Watch the webinar here to learn how to optimize your finances, improve your bookkeeping, and make your business thrive.

Why xendoo Stands Out in Small Business Accounting

xendoo isn’t just about numbers—we’re about people. Unlike traditional CPAs, who disappear after tax season, our team offers year-round support, expert bookkeeping, and personalized accounting services. We speak small business because we live it, providing tools and technology to make your financial management seamless and stress-free.

Ready to Get Started?

Schedule a free consultation today and mention the BBB webinar for personalized accounting and bookkeeping advice tailored to your business needs.

Guide to Tracking and Maximizing Tax Write-Offs

February 6, 2025/in Accounting, Small Business Tips /by Blake Johnson

Tax write-offs are one of the most effective tools small business owners can use to reduce taxable income and keep more money in their business. But tracking and maximizing these deductions requires a strategic, year-round approach. This guide will help you understand tax write-offs, common mistakes, and practical strategies to ensure you’re not leaving money on the table.

What Are Tax Write-Offs?

Tax write-offs, also known as deductions, are expenses that the IRS allows you to subtract from your total income to reduce your taxable income. The result? You pay less in taxes. Write-offs cover a wide range of expenses, but only those that are considered “ordinary and necessary” for your business qualify.

Examples include:

Office expenses: Rent, utilities, and office supplies.
Technology and tools: Software subscriptions, website hosting, and equipment.
Travel costs: Flights, lodging, and meals during business trips.
Marketing expenses: Social media ads, email campaigns, and graphic design fees.

Knowing what counts as a deduction can have a significant impact on your tax bill. However, many small business owners miss out on these benefits simply because they fail to track their expenses properly.

Why Tracking Expenses Year-Round Is Critical

Many business owners wait until tax season to organize their finances, leading to overlooked deductions and unnecessary stress. Tracking your expenses consistently throughout the year ensures:

Accuracy: You’ll have a clear record of deductible expenses when it’s time to file taxes.
Preparedness: Avoid scrambling to find receipts or reconcile expenses.
Savings: A well-organized system makes it easier to spot missed deductions.

Simple ways to track expenses include:

Using accounting software like QuickBooks or Xero.
Dedicating a business bank account and credit card for all transactions.
Keeping digital copies of all receipts.

The Most Overlooked Tax Write-Offs

Even the most diligent business owners can miss deductions. Here are some commonly overlooked write-offs:

Home office expenses: If you work from home, you can deduct a portion of your rent or mortgage, utilities, and internet.
Mileage: Track the miles driven for business using an app like MileIQ.
Professional development: Expenses for training courses, certifications, and workshops qualify.
Business meals: Meals with clients or team members are deductible at 50%.

You’ll avoid leaving money on the table by staying informed about these potential write-offs.

Strategies to Maximize Your Tax Write-Offs

Maximizing deductions isn’t just about tracking every dollar—it’s about being proactive. Here’s how:

Plan Ahead: Meet with a tax professional early in the year to discuss strategies tailored to your business.
Organize Expenses by Category: Use clear categories like marketing, travel, and supplies to make deductions easier to claim.
Review Past Returns: If you’ve missed deductions in prior years, consider filing an amended return.

Proactive planning ensures you take advantage of every opportunity to reduce your tax liability.

Tools and Best Practices for Streamlining Tracking

Simplify the process of tracking your expenses with these tools and practices:

Apps for tracking expenses: Try Expensify or Wave for easy expense management.
Set up automation: Link your business accounts to software that automatically categorizes expenses.
Review monthly: Dedicate time each month to review and reconcile your transactions.

Creating consistent habits around tracking will save time and money when tax season arrives.

The Role of Professional Bookkeeping

Professional bookkeeping is a game-changer for small business owners. Having accurate, up-to-date books means:

You’ll never miss deductions due to disorganized records.
You’ll have clean financials ready for tax season and beyond.
You can make informed decisions about growth and scaling.

Bookkeepers don’t just organize your finances—they provide insights that help you plan for the future. Partnering with experts ensures that your business’s financial health stays a priority.

Key Takeaways

Tracking and maximizing tax write-offs doesn’t have to be overwhelming. You’ll unlock savings and gain financial clarity by staying organized, leveraging technology, and seeking professional support. Ready to start 2025 on solid financial footing? Begin by taking control of your write-offs today. Schedule a consultation to learn how xendoo can support your business’s bookkeeping, accounting, and tax needs.

The Complete Breakdown of a Fractional CFO

January 10, 2025/in Accounting, Small Business Tips /by Team

What Is a Fractional CFO, and Do I Need One?

As your business grows, so do its financial complexities. You may find yourself needing more strategic financial guidance than a bookkeeper or accountant can provide but aren’t ready to hire a full-time Chief Financial Officer (CFO). This is where a fractional CFO can be the perfect solution. But what exactly is a fractional CFO, and how do you know if your business needs one? Let’s dive in.

What Is a Fractional CFO?

A fractional CFO is a highly experienced financial professional who works with your business on a part-time or contract basis. Instead of hiring a full-time CFO, which can be costly, you gain access to expert financial guidance and strategic planning for a fraction of the cost.

Key Responsibilities:

Financial Strategy Development: Helps set long-term financial goals and creates actionable plans to achieve them.
Cash Flow Management: Ensures you have the liquidity to sustain operations and fund growth opportunities.
Budgeting and Forecasting: Provides accurate financial projections to guide your decision-making.
Financial Reporting: Delivers insights from your financial data to help you understand your business’s performance.
Fundraising and Investor Relations: Assists in securing funding and managing relationships with investors or stakeholders.
Risk Management: Identifies financial risks and implements strategies to mitigate them.

Benefits of Hiring:

Cost Efficiency:
Provide top-tier expertise without the expense of a full-time hire. You only pay for the time and services you need.
Flexibility:
Whether you need help for a few hours a month or on an ongoing basis, fractional CFOs offer tailored services that adapt to your business’s needs.
Scalability:
Ideal for businesses in growth mode, offering strategic support to scale operations and manage increased financial demands.
Expertise Without Overhead:
You gain access to a seasoned financial professional with experience across industries, often bringing fresh perspectives and innovative solutions.

Do I Need a Fractional CFO?

Here are some common signs your business can benefit:

1. You’re Experiencing Rapid Growth

Growth is exciting, but it also introduces new challenges, like managing cash flow, planning for expansion, and ensuring profitability. A fractional CFO can guide you through these complexities with a strategic approach.

2. You Need Help Securing Funding

If you’re seeking investors, loans, or other forms of funding, a fractional CFO can prepare the financial documents, forecasts, and pitches needed to build confidence with stakeholders.

3. Your Financial Data Feels Overwhelming

If your financial reports are hard to interpret or you’re unsure about your profitability and margins, a fractional CFO can translate the numbers into actionable insights.

4. You Want to Improve Profitability

Identify inefficiencies, reduce unnecessary expenses, and implement strategies to increase your bottom line.

5. You’re Planning a Major Transition

Whether it’s a merger, acquisition, or significant investment, a fractional CFO can provide the expertise to navigate these high-stakes decisions.

6. You Lack a Clear Financial Strategy

If you’re operating without a solid financial roadmap, a fractional CFO can help create one, aligning your financial goals with your business objectives.

How Does a Fractional CFO Work with Your Business?

They typically operate on a flexible schedule, providing support remotely or in person, depending on your needs. They might work with your existing team or independently, focusing on specific projects or ongoing financial management.

Engagement Models:

Project-Based: For specific tasks like fundraising, restructuring, or financial planning.
Ongoing Support: For continuous oversight and guidance over a set number of hours per month.
Interim CFO: Filling the gap while you search for a permanent CFO.

Is This Right for Every Business?

Not all businesses need a fractional CFO. For startups or very small operations with straightforward finances, a bookkeeper or accountant may suffice. However, if your business is growing, evolving, or facing financial challenges, the expertise can be transformative.

Conclusion

A fractional CFO offers strategic financial expertise at a fraction of the cost of a full-time hire. If your business is navigating growth, managing complex finances, or planning for the future, this could be the missing piece to help you thrive.

Evaluate your current financial needs and consider how a fractional CFO could provide the guidance and clarity to achieve your business goals.

5 New Year’s Resolutions for Small Business Success in 2025

January 9, 2025/in Accounting, Small Business Tips /by Team

Small Business Resolutions

The beginning of a new year is a natural time for reflection and goal-setting, and this applies to businesses just as much as individuals. For small business owners, 2025 is full of opportunities to strengthen operations, build deeper customer connections, and achieve new milestones. To help you make the most of this year, here are five impactful small business resolutions designed to boost growth and efficiency while keeping your team and customers at the heart of everything you do.

1. Prioritize Digital Transformation

Digital transformation has shifted from being an optional enhancement to a necessary evolution for businesses of all sizes. In 2025, small businesses that embrace technology will find themselves better equipped to adapt to market demands, reduce costs, and improve customer satisfaction.

Leverage AI for Strategic Insights: AI tools can elevate your business planning and operations. For instance, tools like ChatGPT can assist in brainstorming content strategies, drafting compelling copy for marketing campaigns, or analyzing customer feedback to identify trends. By integrating AI into your workflow, you can save time and focus on creative decision-making, while improving the quality of your outputs.
Strengthen Your Digital Security: As businesses increasingly rely on digital tools, cybersecurity becomes critical. Ensure your systems are protected by using strong passwords, enabling two-factor authentication, and investing in reliable security software. Regularly back up your data and train your team on recognizing potential threats, such as phishing attempts, to safeguard your operations. Click here to read Cybersecurity 101 for Small Businesses: Essential Tips to Protect Your Data.
Integrate Cloud-Based Solutions: Transitioning to cloud-based tools for file storage, collaboration, and project management can boost efficiency and accessibility. Platforms like Google Workspace or Microsoft 365 allow your team to access files and work collaboratively from anywhere, making remote work and on-the-go productivity seamless. This also ensures your data is backed up and protected in secure, offsite servers.

2. Enhance Financial Management

Sound financial management is one of the most important aspects of running a successful business, yet it’s often one of the most overlooked. In 2025, add to your small business resolutions to make financial organization and planning a top priority.

Key strategies for improved financial health include:

Regular Financial Reviews: Schedule time each month to review your income, expenses, and cash flow. This habit can help you identify patterns, spot inefficiencies, and plan for upcoming expenses.
Tax Planning: Avoid scrambling during tax season by preparing throughout the year. Keep organized records of expenses and consult with a tax professional to maximize deductions.
Outsource Accounting Tasks: If managing finances feels overwhelming, outsourcing can save time and reduce stress. Partnering with an expert service like xendoo ensures your bookkeeping and accounting are handled professionally, leaving you free to focus on growing your business.

Being proactive about your finances helps you to make more informed decisions about investments, hiring, and expansion.

3. Focus on Customer Retention

Attracting new customers is essential, but retaining existing customers is even more valuable. Studies consistently show that loyal customers spend more, refer others, and cost less to retain compared to acquiring new ones. Make 2025 the year you deepen your relationship with your current customers.

Steps to enhance customer retention:

Offer Personalized Experiences: Use customer data to tailor recommendations, emails, or promotions to individual preferences. For example, an online store might recommend products based on previous purchases.
Implement a Loyalty Program: Reward repeat customers with points, discounts, or exclusive perks. These programs can encourage continued engagement and spending.
Proactively Gather Feedback: Use tools like SurveyMonkey or Google Forms to collect customer feedback. This helps you identify areas for improvement and shows customers that their opinions matter.

Small changes can make a big difference. For instance, a local fitness studio could offer a free personal training session after 10 class visits or send a personalized message to members congratulating them on reaching a milestone. These gestures build trust and goodwill, keeping your business top of mind.

4. Invest in Team Development

A skilled, motivated team is a cornerstone of any thriving business. In 2025, prioritize your employees’ growth and well-being to create a strong foundation for success.

How to invest in your team:

Provide Ongoing Training: Equip employees with the skills they need to excel. Whether it’s customer service training, technical certifications, or leadership workshops, professional development opportunities keep your team sharp and engaged.
Recognize and Reward Contributions: A simple acknowledgment of hard work goes a long way. Celebrate wins, highlight standout performances, and consider implementing incentives like bonuses or extra time off.
Foster a Positive Workplace Culture: Create an environment where employees feel valued, supported, and heard. Regular one-on-one check-ins and open communication channels can make all the difference.

For example, a tech support company might invest in ongoing training for its team to stay updated on the latest software and troubleshooting techniques. Not only does this improve the customer experience by resolving issues more effectively, but it also enhances employee confidence and satisfaction.

5. Expand Your Reach Through Strategic Marketing

Marketing is the engine that drives visibility and growth. In 2025, resolve to make your marketing efforts more strategic, targeting the right audience with the right message at the right time.

Ways to elevate your marketing strategy:

Leverage Social Media Trends: Platforms like TikTok and Instagram continue to dominate, particularly with younger audiences. Short-form video content, behind-the-scenes glimpses, and user-generated content can boost engagement.
Invest in Paid Advertising: Consider using tools like Google Ads or Meta Ads Manager to run targeted campaigns. Paid ads can drive immediate traffic and conversions, especially when paired with strong landing pages.
Create Valuable Content: Blogs, videos, and downloadable resources establish your expertise and attract potential customers. For example, a fitness studio might create a free eBook with home workout tips to build brand awareness and grow its email list.

Local businesses should also tap into community marketing opportunities. Partner with other local businesses for events or promotions, sponsor local initiatives, or optimize your Google Business profile to attract nearby customers.

Elevate Your Small Business Resolutions in 2025

New Year’s resolutions are an opportunity to take focused, actionable steps toward achieving meaningful progress. By prioritizing digital transformation, mastering financial management, deepening customer relationships, investing in your team, and fine-tuning your marketing strategy, you can position your business for sustainable growth and success.

The key is consistency. Small, steady improvements in these areas can lead to significant results over time. Which small business resolutions will you start with? Begin today, and set your business on a path to thrive in 2025 and beyond.

Mastering Your Shopify Accounting Challenges

October 22, 2024/in Accounting, Small Business Tips /by Team

Running an eCommerce store on Shopify is exciting, but with growth comes responsibility—especially when it comes to accounting. Whether you’re tracking inventory, managing payments, or keeping up with tax requirements, staying on top of your finances can quickly become overwhelming. But with the right approach, you can simplify your Shopify accounting process and stay focused on growing your business.

1. Syncing Your Shopify Store with Accounting Software

Integrating accounting software can make managing the finances of your Shopify store much more efficient. Instead of manually tracking sales, expenses, and inventory, accounting software simplifies the process by automating these tasks, making everything simpler and more efficient.

What does it mean to “sync” your store with accounting software?

Syncing means connecting your Shopify store directly to an accounting platform like QuickBooks or Xero so that your sales data, expenses, and inventory are automatically updated in real time. Without this integration, you’d have to manually enter every sale, expense, and inventory change into a separate system, which can be time-consuming and prone to mistakes.

How does this help?

Syncing your Shopify store with accounting software pulls all the important financial information directly from Shopify. Every time you make a sale, the transaction is automatically recorded in your accounting system. If you buy inventory, that purchase is logged, and your inventory levels are updated. This integration keeps all your financial data in one place and updates it instantly.

Why is this important?
Here’s why syncing your Shopify store with accounting software is such a game-changer:

Reduces Manual Work: You don’t have to spend hours manually entering sales, receipts, and inventory updates. The system does it automatically, saving you time and reducing the risk of errors.
Real-Time Accuracy: Since your sales, expenses, and inventory are updated automatically, your financial reports are always up to date. This means you can quickly see how much money you’re making and spending without having to wait for someone to update your books.
Minimizes Errors: Manual data entry can lead to mistakes—whether it’s entering the wrong sales figure or forgetting to update your inventory. Automated syncing makes less room for human error, which helps ensure your financial data is accurate.
Easy Reporting: With all your financial data in one place, you can generate reports that show how your business is performing. Whether it’s a profit and loss statement or a balance sheet, having accurate, up-to-date information allows you to make smarter business decisions.

2. Managing Inventory and Cost of Goods Sold (COGS)

Keeping track of your inventory is one of the most important parts of running a successful Shopify store. But it’s not just about knowing how many products you have in stock—accurately managing your inventory is key to understanding how much money you’re really making. This is where Cost of Goods Sold (COGS) comes into play.

What is COGS?
COGS refers to the direct costs involved in producing or purchasing the products you sell. This includes things like the cost of materials, manufacturing, and even shipping to get the product into your hands. It’s crucial because it directly affects your profits. If you don’t know how much each product costs to make or buy, it’s hard to determine how much profit you’re making on each sale.

How does accounting software help?
Shopify has built-in tools to track how much inventory you have, but it doesn’t always give you a full financial picture. That’s where accounting software comes in. When you pair Shopify with accounting software like QuickBooks or Xero, the software automatically tracks and calculates your COGS for each product.

Here’s how it works: Every time you sell a product, the accounting software not only logs the sale but also adjusts your inventory levels and updates the cost associated with that sale. It takes into account things like discounts, shipping costs, and any other expenses related to the product, so you get an accurate calculation of your profit.

3. Sales Tax Compliance Simplified

Sales tax can get complicated on the Shopify platform. Different states and regions each have their own rules about when and where sales tax needs to be collected. It’s not as simple as applying one tax rate to every sale—local laws and thresholds vary depending on where your customers are located, making the process more complex than it seems.

For example, in some states, you might be required to collect sales tax if your sales exceed a certain amount, but in others, you might not have to collect anything unless you have a physical presence there. Keeping track of these varying rules while also running your business can quickly become overwhelming.

How can sales tax automation tools help?
Sales tax automation tools, such as Avalara or TaxJar, integrate directly with your Shopify store and handle the heavy lifting for you. These tools are designed to track all of the different rules in each state or region and calculate the correct amount of sales tax for each purchase automatically. You won’t have to manually calculate tax rates for each customer or worry about changes in tax laws. The software stays updated with the latest rules, so you always collect the correct amount.

Here’s how it works:
Let’s say a customer in New York buys a product from your store. Instead of you having to figure out what the current tax rate is for New York and whether you’re required to collect tax there, Avalara or TaxJar will automatically calculate the exact amount and apply it to the transaction. It will even update your records in real time, so every sale is properly accounted for.

Why is this important?
Sales tax compliance is not something you want to overlook. If you’re not collecting the correct amount, you could face penalties or audits from tax authorities, which can be costly and time-consuming. By using automation tools, you avoid these risks and ensure that your business is always in compliance.

4. Understanding Payment Gateways and Fees

When running a Shopify store, you’re likely using payment gateways such as Shopify Payments, PayPal, or Stripe to process customer transactions. While these gateways make it easy for your customers to pay, it’s important to understand that each one comes with processing fees. These fees are typically a small percentage of every sale, but over time, they can add up and affect your overall profits if not properly accounted for.

What are payment gateway fees?
Payment gateway fees are the charges you pay to the service provider (like PayPal or Stripe) for processing each transaction. These fees usually range from 2% to 3% per transaction, depending on the gateway and your sales volume. For example, if you sell a product for $100, and the gateway charges a 2.9% fee, you’re paying $2.90 just to process that payment.

Why are these fees important to track?
At first glance, these fees might seem small, but if you’re processing hundreds or thousands of transactions a month, they add up quickly. Let’s say your store processes $50,000 worth of sales in a month. If you’re paying a 3% fee, that’s $1,500 in processing fees for that month alone. If you’re not keeping track of these fees, they can quietly eat into your profits without you even realizing it. By integrating your Shopify store with accounting software like QuickBooks or Xero, you can automatically track these fees and gain better insight into how they’re affecting your bottom line.

What are the benefits of tracking these fees?
Tracking your payment gateway fees gives you several advantages:

Clear Profit Margins: By recording these fees, you get a true sense of your profit margins. Instead of just looking at the sales amount, you’ll also see how much of that sale is going to fees, which helps you better understand your bottom line.
Compare Gateways: If you’re using multiple payment gateways (for example, Shopify Payments and PayPal), tracking fees allow you to compare which one is more cost-effective for your business. You may find that one gateway charges lower fees for the majority of your transactions, and you can shift more sales toward that option to save money.

5. The Benefits of Working with a Bookkeeping Expert

If managing your Shopify accounting feels overwhelming, you’re not alone. Partnering with a bookkeeping expert who understands the unique challenges of eCommerce businesses can take the load off your shoulders. A trusted accountant or bookkeeping service will ensure that everything from taxes to payroll is handled accurately and on time, allowing you to focus on what you do best—growing your business.

With xendoo, you get a dedicated team of professionals who specialize in Shopify bookkeeping and accounting. We handle everything from bookkeeping to taxes, ensuring your financials are accurate and on time. Let us take care of the numbers so you can focus on growing your business and reaching new heights.

Choosing the Right Accounting System for Your Shopify Business

April 19, 2021/in Accounting, Small Business Tips /by Team

Editor’s Note: This post was originally published in October 2017 and has been updated for accuracy and comprehensiveness.

Whether you’re brand new to online retail and trying to decide how to set up your eCommerce business, or you’ve been around a while and simply reached the point where your DIY accounting solution just isn’t cutting it anymore, xendoo’s innovative suite of business offerings can help you. xendoo can get your small business accounting running like a well-oiled machine so you can focus on what’s important – growing your business. To be competitive in the new economy, cloud-based accounting is no longer a luxury; it’s a necessity. Here are some of the best accounting systems for Shopify that can help get your business on track.

QuickBooks Online

QuickBooks Online is the cloud-based version of the popular and versatile QuickBooks business accounting software. Quickbooks Online accounting system for Shopify allows you to access your account information from any web browser, and the API creates a seamless interface that links directly to xendoo’s platform. That means you can easily organize and sync all of your critical financial data with no tedious manual data entry. Additionally, Quickbooks Online for Shopify allows you to easily create and send invoices, receive payments, pay bills, and manage payroll.

Track income and expenses
Capture and organize receipts according to your chart of accounts
Download and organize bank account and credit card transactions
Print checks
Create and send invoices, as well as receive payments
Print financial reports
Tax organization

A person holds their phone lookig at a recent Shopify order

Xero for E-commerce

QuickBooks is a popular accounting system for Shopify, but it may not be the best choice for everyone. Xero is another cloud-based accounting solution that will appeal to a lot of Shopify store owners. Xero is fast, simple, and powerful. It can sync with hundreds of third-party applications for point-of-sale, inventory, and much more. It also offers a mobile app for convenience and allows customers to create an unlimited number of users. From within the Xero accounting software for Shopify, you can manage your accounts payable, accounts receivable, budget, and category or division tracking.

Customizable dashboard
Create invoices and quotes and receive payments
Track inventory
Bill payment
Expense management and project management
Create and print financial reports
Bank account reconciliation
Highly scalable for small or growing businesses

A2X for Shopify

A popular middleware, or “connector,” application that links your Shopify store with your cloud-based accounting system is A2X for Shopify. It automatically posts your Shopify sales and fees directly into QuickBooks or Xero, saving you hours of tedious work each week. That also means no more stressing over why transactions don’t match your bank deposits because A2X eliminates data entry mistakes.

Automatically post store data into QuickBooks or Xero
Automatically reconcile bank statements
Automatically make adjustments for fees and refunds
Create and print summarized statements

Coins spills out of a glass jar on a table

TaxJar for Shopify

A major time vampire for business owners who sell on Shopify is state sales tax compliance in the wake of Wayfair, Inc. v. South Dakota (2018), which requires online sellers to comply with sales tax requirements in each state where they do business. TaxJar accounting system for Shopify will streamline your sales tax compliance process by showing you where you should be collecting sales tax according to economic nexus laws and generating return-ready reports. It can even auto-file your returns for you if you want.

Calculate sales tax based on each state’s nexus
Daily updates allow for timely return filing
AutoFile option for automated return filing
Display fines and penalties for delinquent filing
Compare actual collections to what should have been collected

Shopify Apps

In addition to your accounting software, Shopify offers over 1,000 plug-in applications from their app store to help you with managing inventory, shipping, reporting, and much more. However, we suggest that you fully explore the capabilities of QuickBooks, Xero, A2X, and TaxJar before making any decisions about additional applications. A lot of functionality might be duplicated, and you certainly don’t want to pay for the same thing twice.

In addition to tons of helpful plug-ins, Shopify also features a profit margin calculator. Just plug in your cost of the item and a markup percentage, and Shopify will calculate the sale price, your gross profit in dollars, and your gross margin.

Outsourcing Your Bookkeeping and Accounting

Even though these accounting systems for Shopify can make life much simpler for sellers than even just a few years ago, it can still sometimes feel overwhelming. If you begin to feel like you might be in over your head, you should consider outsourcing your accounting and bookkeeping to a small business accounting firm like xendoo.

There are a lot of good reasons to outsource your accounting for your Shopify eCommerce business, and it’s more affordable than you might think. xendoo’s accounting team works with small business owners just like you to provide expertise and insight into the accounting needs of e-commerce businesses. xendoo can take care of everything from weekly bookkeeping to filing business taxes for you, and our flat monthly fee is less than half of what you’d probably pay an accountant. xendoo’s mission is to give you the peace of mind of knowing it’s being done right, and free your time to focus on what’s important – growing your business. Sign up for a free trial today.

eCommerce Trend Report: 2020 Recap & 2021 Forecasts

April 6, 2021/in eCommerce /by Team

Editor’s Note: This post was originally published in March 2020 and has been updated for accuracy and comprehensiveness.

For all the challenges the economy faced in 2020, it may come as something of a surprise that overall domestic retail sales saw their highest rate of growth in over two decades during 2020. What probably isn’t much of a surprise to anyone who has been paying attention is that that strong growth was driven entirely by eCommerce trends in 2020, with online sales accounting for 101% of that growth.

The COVID-19 pandemic drove more and more shoppers to online retailers in lieu of brick-and-mortar stores, and the good news is that that movement shows no sign of slowing down in the eCommerce trends for 2021. The bad news is that sales tax compliance continues to be a thorny issue for online retailers as they struggle to keep up with state regulations. Figures represent US domestic sales unless specifically noted as global figures.

Consumer Migration to E-commerce

Overall retail sales in 2020 topped $4.04 trillion, representing a 6.9% increase over 2019 sales of $3.78 trillion. That was driven by a massive 44% increase in online shopping, nearly three times the previous record eCommerce year-over-year growth 2019 of 15.1%. A significant portion of that increase was also due to first-time online shoppers. E-commerce market penetration leaped from 15.8% in 2019 to 21.3%, representing a sharp increase from its previous trend of 1-2% growth per year. In 2020, eCommerce transformed from being a convenient alternative to brick-and-mortar stores for some consumers to an essential part of daily life in an age of pandemic.

Holiday Shopping

Following the overall trend toward online shopping, domestic holiday shopping showed similar rates of year-over-year growth. Out of $861 billion spent online in 2020, over $200 billion of sales occurred during the holiday shopping months of November and December.

Thanksgiving Day online sales rose 21.5% to $5.1 billion
Black Friday online sales rose 21.5% to $9 billion
Cyber Monday online sales rose 15% to $10.8 billion
Total Cyber-week domestic online sales reached $60 billion

Hottest E-commerce Segments in 2021

Fashion and online apparel remained the largest segment of online shopping globally in 2020, followed by toys and electronics.

Online apparel sales rose 15% to $760 billion globally, projected to reach $1 trillion by 2025
Toys rose 12% to $590 billion in global online sales, projected to reach $766 billion by 2025
Consumer electronics saw $542 billion in global online sales, a 28% increase over 2019.
Food and personal care items came in fourth at $468 billion
Furniture and household appliances totaled $362 billion globally.

Largest Retailers

Unsurprisingly, Amazon retained its throne as the undisputed king of online retailers, with a whopping 38% of all domestic sales, down slightly from its 2019 share of 43.8% share in 2019. Other online retailers like Walmart and Target managed to chip away at Amazon’s lead, but are still behind by a wide margin.

Amazon – 38%
Walmart – 5.3%
eBay – 4.7%
Apple – 3.7%
Home Depot – 1.7%

Smartphone Sales

Smartphones continued to increase in popularity as a platform for online shopping, representing 54% of online sales in 2020 and projected to reach 73% in 2021. 79% of smartphone owners have made at least one online purchase with the device, and 80% of smartphone owners have used a smartphone to look up product information or reviews while shopping in a traditional brick-and-mortar store. It’s clear that the prevalence of smartphones will continue to be a driving force in eCommerce for the foreseeable future.

Trends to Watch

Whether you have something like a Shopify store or sell through your own website, it’s imperative to stay on top of technology and predict online consumer product trends so that you can stay one step ahead of the competition. To that end, we’ve identified some eCommerce future trends that are definitely worth keeping an eye on in 2021.

BOPIS (Buy Online, Pick-Up In-Store) and Curbside Pickup

This trend dominated much of 2020 because it combined the convenience of online shopping with the immediacy of in-store shopping. While some shoppers will revert to in-store shopping, this trend is here to stay.

Augmented Reality (AR)

Augmented reality emerged as a player in eCommerce in 2020, with, for example, some furniture retailers allowing consumers to upload a photo of their living room and see how a particular piece would look in it.

Digital Wallets & One-Touch Purchase

Many consumers have been hesitant to make the move to online shopping due to concerns about fraud, while others were put off by the inconvenience of having to enter a credit card number. Digital wallets like ApplePay and GooglePay have alleviated many of those concerns by making secure one-touch purchases from smartphones. However, most security concerns are pushed to the wayside for convenience, and this eCommerce trend is probably here to stay.

Cryptocurrencies

Although controversial and not widely adopted currently, cryptocurrencies are poised to become a force in eCommerce in the not-too-distant future. Because Bitcoin is both a currency and a payment processor, it can facilitate secure transactions across borders at transaction fees of 1%, as opposed to the typical 2-3% merchant fees charged by credit card processors. Some large online retailers like Overstock.com already accept Bitcoin.

More Sales Tax Headaches

In response to declining state sales tax revenues from the move to online shopping, the US Supreme Court ruled in South Dakota v. Wayfair (2018) that each state could tax online retailers to create a replacement revenue stream individually. Online retailers must now monitor and comply with 50 different sales tax laws, creating enormous accounting overhead.

This is yet one more reason to outsource your bookkeeping service and accounting to a professional firm like xendoo as a cost-effective solution to this regulatory nightmare. Sales tax processing is just one of the many affordable services available in xendoo’s small business offerings. xendoo can also ensure you are getting all the eCommerce tax deductions you are entitled to as an online retailer.

It’s clear that eCommerce will only continue to grow by leaps and bounds in the future. Consumers were already growing accustomed to the convenience of online shopping, and the COVID-19 pandemic was the impetus that pushed many holdouts to take the plunge. Many retailers struggle to understand emerging technologies and keep pace. The retailers that don’t will be left behind in the wake of those who do. Staying on top of technology and eCommerce trends is critical to success in retail in 2021.

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