The latest e-commerce accounting trends to follow in 2021

1. Shift to outsource e-commerce accounting

   – Research says organizations can, on average, achieve a 15% cost reduction through outsourcing. Outsourcing the e-commerce accounting function allows business owners to cut overhead costs because they don’t have to spend on salary and such benefits as retirement, vacation time and health insurance. IThey also don’t need to spend money on software and the equipment essential for handling the accounting processes.
   
   Accounting mistakes can have disastrous repercussions on a company, such as penalties, cash flow issues and even an investigation by the IRS. Outsourcing the e-commerce accounting functions gives them access to a team of highly qualified and trained professionals, who use the latest technology and processes to ensure that your data is accurate and secure.

1. Move to cloud accounting

   – Organizations are increasingly shifting to cloud accounting for several functional and economic reasons. Research shows that cloud-based software can cut labor costs by as much as 50%. With cloud accounting tools, several tasks can be automated. This not only saves time but also ensures data accuracy and integrity — encryption and tight security measures make the cloud more secure than local storage devices in many ways. Also, cloud software can be accessed from anywhere; all you need is an internet connection.

1. Multiple payment options

   – Cash payments are now a rare thing, especially since the COVID-19 breakout — since more and more people are shopping online now. Users are more comfortable using either credit and debit cards, or apps such as GooglePay, PayPal and ApplePay. This is where the complications can come in because with money flowing through different mediums, it can get difficult to make appropriate entries, and discrepancies add up in cases of chargebacks. 

1. Regular auditing of accounts

   – In 2021, almost all accounting functions are expected to be automated, which means that the transactions risk getting stuck, failing or money getting credited to the wrong account. Therefore, accountants will need to be more vigilant when inspecting transaction histories and bank accounts to ensure that book entries match cash flow. 

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