Not everyone is good at accounting, but everyone knows the basics of it. Accounting is something that makes your numbers in order so that your business gets prepared for every tax season.
Most of the people feel stress while preparing tax forms for their online WooCommerce store. For reducing your stress, WordPress specialists have suggested multiple accounting tips with the help of accounting experts so that you can manage your tax forms easily.
Before you get more stressful, let’s get an insightful overview of those tips and tricks so that you can easily do your accounting for your WooCommerce store.
5 Essential Accounting Tips
Following are the five essential accounting tips you must know:
1. Understand the Sales Tax Rule:
The first thing that might come into your mind while selling your products and services online is the tax details for your online WooCommerce store. It can be difficult initially, but once you know the sales tax rule for your product and your online store, you can easily manage your tax forms.
The best practice is that you consult with any accounting expert for understanding the basics of sales tax. The tax rates may vary in every state and country, so you should be clear about the tax you charge from customers residing in different states or countries.
2. Use Tax Management Plugin:
Although WooCommerce itself provides you with the option to charge the sales tax on every order, you can also use any other tax management plugin to ease the process of tax charging and collection.
If you don’t use any plugin, WooCommerce will charge an appropriate sales tax on the customers’ products, shipping address or tax zones. But this option can be a bit overwhelming because you might have to set up hundreds of tax rules, depending on the different states or countries.
You can use different tax calculation plugins, and one of the most famous tax plugins include “TaxJar”. You can easily integrate this plugin in your WooCommerce online store.
3. Sync with Accounting Platform:
After setting up your tax details, the next thing is keeping track of your tax data. We know that WooCommerce is an online store builder plugin and not any accounting platform. The best practice is to enter all your tax data in an accounting platform so that you can keep track of your tax details at one place.
The most famous platform for this purpose is QuickBooks. It is an accounting platform that offers you multiple features like managing your expenses, taxes, and invoicing options at a single place. WordPress specialists also suggest this platform for WooCommerce business owners.
4. Track Key Figures (Revenue, Sales etc.)
By syncing your WooCommerce store with an accounting platform, you can closely and easily monitor the key figures such as expenses, cost of sales, revenue and profits.
You might come across the term reconciliation. It means telly your accounts information with the QuickBooks or any other accounting platform that you used for storing your data. Account reconciliation is necessary because it removes all the errors and omissions in your data and returns you an actual figure of your profits, costs, expenses and revenue.
Moreover, you should maintain a separate bank account of your online business, because it won’t mix up your business expenses with your personal expenses.
5. Do Not Miss Your Deadlines:
You may miss your deadlines, but the tax department never forgets your deadlines. Prepare a customized calendar for tax deadlines of your business so that you won’t face any problem in the future.
If you have hired an accountant, make sure he meets all the deadlines and don’t miss any of them, because if he misses one, you may end up paying a costly fine.
Over to You!
I hope that you read this article thoroughly. All of the accounting tips as mentioned above tips will be helpful while managing your tax details. If you still have any difficulty while managing your sales tax for your WooCommerce store, you can contact Two Runs WooCommerce experts. They will provide you with some additional support, along with amazing tips and tricks.