In e-commerce, a total sales figure is not enough. The accounting cycle should follow the order from creation through settlement or return, and confirm that operational reports, accounts and supporting records tell the same story.
An order is not the same as a settlement
An order may be recorded today while cash arrives later after platform fees, payment charges or delivery deductions. Each channel therefore needs its own settlement logic.
- Order and sales reports from stores and marketplaces.
- Payment gateway and marketplace settlement statements.
- Cash-on-delivery collections and courier reconciliations.
- Returns, cancellations, discounts and vouchers.
Where does the accounting cycle become difficult?
The challenge is usually not the number of entries. It is the number of data sources and the timing differences between sale, invoice and collection.
- Multiple channels with different product references.
- Fees and commissions deducted before cash is received.
- Inventory moving between an internal warehouse and fulfilment providers.
- Timing gaps between sales reports, invoices and bank settlements.
What should be reconciled regularly?
We structure a review cycle that connects operations, accounting and tax so differences are investigated before they accumulate.
- Sales by channel against recorded revenue.
- Net settlements against bank and cash records.
- Returns, credit notes and discounts.
- Inventory and cost of goods sold where relevant.
- Electronic invoices or receipts and the issuance process.
Management needs a channel view
The owner should be able to see which channel produces a stronger margin, where cash is tied up and how fees and returns change real profitability. Reporting should therefore support decisions rather than reproduce a generic ledger.
Book a session to discuss the operating cycle and professional need →