Meet our client Rob:
Our client owns a rapidly growing Ecommerce business. As a result of the major business growth they had experienced, this client had to transition from using the Quickbooks accounting software to using NetSuite. Rob contacted Fusion CPA to help him set up and manage the transition but within the first consultation, our CPAs discovered a discrepancy in their bookkeeping. As it turned out, the costs of many of the items on their e-commerce website were entered incorrectly. Their inventory and the costs of goods sold were completely off.
Our team quickly realized that in addition to this wreaking havoc on their books and painting a skewed picture of their business position, it could have damaging effects on their financial reporting to the IRS.
To save this client from loss of business and potential tax penalties, Fusion CPA remedied the situation in the following manner:
- We ran a full diagnostic assessment on the business, to identify items that were priced incorrectly. This required thorough investigation by the excel wizards on our team, who were able to fine-tooth comb transactions against the inventory and financial records to identify the inconsistencies and correct them. The ripple effects of this error would have damaging consequences for this business and could be considered any e-commerce business’s worst nightmare. Our team worked with speed and accuracy to rectify this. This process aided a cleaner transition to the new accounting software and safeguarded the business from carrying the same mistake over to NetSuite.
- Once we remedied the error, we were able to aid the client with their NetSuite setup. This client now had the comfort of knowing that the numbers within the new platform were accurate and that the overall picture of the financial position of the business, was correct.
Because NetSuite comes with a lot more customization ability than Quickbooks, it is easy for any business transitioning to this software to get carried away with the endless features.
The challenge when transitioning to NetSuite is that many businesses do not understand how to use these all the features correctly and don’t set the software up accurately for the financial recording needs of their business. This can easily create an accounting mess that might need major clean-up and cost lots of money later on.
To prevent this, our CPAs ensured that Rob’s NetSuite setup was focused solely on the core needs of his e-commerce business, and we trained the team to use the functionality correctly.
Do you run an e-commerce business and feel uncertain about your record-keeping? Or, do you need to move to an accounting software platform that can handle the growth of your business?
This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. Articles are based on current or proposed tax rules at the time they are written, and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.