Bookkeepers are the backbone to e-commerce businesses, keeping track of financial information and maintaining compliance. This puts you in the perfect position to boost profitability by offering additional value-based services.
As a bookkeeper, you’re probably aware of the complex needs of e-commerce brands, and how this can be a unique opportunity to offer solutions catered to identified areas of need. That’s why we’ve written this article to show you ways you can leverage this along with other strategies to increase your profit margin.
1. Value-based pricing
A value-based pricing strategy is when a business charges a customer based on the cost they believe the customer is willing to pay. Simply put, value-based pricing means determining rates based on client results and impact. This differs from cost based pricing where the cost is calculated by including a percent increase to the labor costs to gain a profit.
Although cost based pricing is predictable, there is little room in the strategy to factor in added value based on the quality of the service that is provided to clients. This could look like forfeiting an hourly rate and instead calculating fees based on the value you provide to e-commerce clients.
When calculating the value based price for your firm, here are some things to consider:
•Money and time saved: E-commerce companies can focus on growing while bookkeepers manage their finances.
•Advice given: Proactive advice and strategic recommendations that spur business growth. Bookkeepers with e-commerce experience can provide invaluable insights.
•Efficiency of the service: Automating bookkeeping tasks can streamline financial processes, improving accuracy and efficiency.
•Additional services included: These services can look like budgeting, forecasting, and modelling.
Each of these services can justify premium rates. Bookkeepers showcasing their value can charge premium rates, especially given e-commerce profit margins. These price points can be re-evaluated yearly to make adjustments based on services provided and shifting costs.
2. Build an integrated app ecosystem
Your firm may still rely on manual entry and desktop software. By using cloud-based apps, bookkeepers can automate more work and provide clients real-time access and insights. Some apps and software you should consider integrating include:
•Accounting software: A general ledger like QuickBooks Online (QBO), Xero or MYOB should act as the core of your app ecosystem and the single source of truth.
•Analytics tools like Klipfolio or Google Data Studio to provide customized dashboards and reports for clients.
•Expense management apps such as Expensify or Certify to simplify reporting expenses and receipt storage.
•Accounting integrations like Amaka integrate e-commerce platforms with accounting software, syncing transactions and speeding up bank reconciliation.
An integrated app ecosystem makes a bookkeeper's job easier and provides additional features and insights for clients. With integration tools to assist you in streamlining bookkeeping processes, your firm is then able to justify an adjustment in service rates.
3. Automate and streamline data
Many of the manual tasks done by bookkeepers can be streamlined by technology. Repetitive and routine tasks such as data entry, reporting, and bank reconciliation are suitable for automation. This reduces errors and allows bookkeepers to focus on high-value work.
Some examples of automating bookkeeping tasks include:
•Automated bank reconciliation and transaction matching. Amaka’s accounting integrations automatically match transactions from the e-commerce platform to the bank feed, making the reconciliation process lightning-fast.
•InView by Amaka is a tool used to automate more bookkeeping tasks helping you manage invoices and bills directly from your Slack or Calendar, helping save time.
•Tools to forecast cash flow, budget variances, and other insights. AI analyzes trends in spending to predict future needs.
Each of these options are important to implement if you’re looking to improve efficiency. With this in place, your firm is then able to allocate saved time elsewhere, helping you achieve more in less time and having an effect on overall profitability.
4. Provide consulting and advisory
E-commerce companies often encounter unique challenges, so bookkeepers that offer consulting become trusted partners. Valuable consulting services for e-commerce brands can look like offering a strategic plan for growth, investment, and exit strategies. You could also tailored budgeting, forecasting, and scenario modeling based on the e-commerce business model and trends. This helps clients make data-driven decisions.
Your firm can also offer your expertise and advice on matters like sales tax. This would be specifically helpful for e-commerce companies who have an international presence. Bookkeepers with specialized e-commerce knowledge have opportunities for consulting work at attractive rates. Providing advisory and consulting services is an opportunity to demonstrate significant value to your e-commerce clients while boosting their profit margins.
Making a commitment to growing your understanding of e-commerce businesses and the challenges they face is important in deciding what you can offer to them. The combination of having a well-rounded knowledge of e-commerce alongside these steps will have you ready to increase your profit margins in no time.
About Amaka’s accounting integrations and automation
Amaka is recognized as the gold standard in accounting integrations and SMB automation. It is trusted by over 55,000 users globally as a result of the seamless, reliable and flexible integrations built by accounting professionals and business owners to eliminate manual data entry.
Discover Amaka’s range of accounting integrations for e-commerce, POS and more. Integrations are either 100% free or have a free plan available. Book a 30-minute walkthrough now. Plus, list your firm in our directory to showcase your expertise to thousands of business owners every month.