The Proof is in the pudding
An area of business that’s always fun to talk about is accounting and bookkeeping. And by fun, I mean the type of fun when I’m in attendance at an all-day family reunion.
For a lot of brands, the time you want to spend is on the vision, the sales & marketing, and the execution. While some brand owners come at it from the opposite direction, the new age reality is that you don’t need to be 5-tool ball player anymore. You simply need to be able to supplement your own weaknesses.
I’ve done a lot of research in this area because I believe manual bookkeeping is going to go the way of Blockbuster Video. My senses also perk up anytime I hear that everyone is using the same solution or two, such as QuickBooks or NetSuite. (For the record, I have nothing against either of those tools, but they have been slow to evolve for ecommerce.)
For digital brands, in particular, there’s a speed element involved. If I were to ask you for updated books year to date through today, how many of you could provide that?
Updated books help you better manage cash and profitability. And this matters when you have a spider-web of digital ads. In the age of hourly reporting, it seems a little silly that a lot of brands still reconcile their books on a monthly basis.
They also help relieve stress. I’ve been on the receiving end of investor requests at the eleventh hour, which have led to a firestorm of calls. The first time it happens, it’s a thrill. Every time thereafter, it’s a “How can I prevent this from happening again?”
Last, more timely bookkeeping is good for employee morale. Imagine a year end bonus being paid on January 31st of the new year instead of having to wait until March. It’s good for everyone’s finances, while allowing your entire team to move forward mentally.
My solution? I was introduced to a company called Finaloop that works with brands and connects directly to online revenue streams, payment processors, and credit/debit accounts. Put simply, the full circle approach automates everything, allowing you to view real-time financials. While there’s a lot of accounting software out there, Finaloop was built with the ecommerce brand in mind.
The best part? It’s extremely affordable. Let’s say you do $3 million in annual revenue, you’ll pay $4,740 (or $395/month) for this service, which will literally strengthen your P&L.
The service is only available in the US for now, with Canada close behind and further expansion planned for down the road.
While I’ll focus a lot of revenue generation ideas, this is one of those back-end solutions that just makes sense. Until next time…
