Online Accounting

Online Accounting for Webshops

As an entrepreneur, bookkeeping is probably one of the most tedious tasks you have to deal with. However, it is also one of the most important tasks to complete and is even legally required. On this page, we will tell you everything you need to know about online accounting for webshops, the best way to handle it, and the best accounting software available.

Free accounting starter guide

In our helpful accounting starter guide, you'll find all the information you need to start bookkeeping for your online store. Including a handy checklist for free dopamine kicks!

What is online accounting?

Online bookkeeping simply means processing and keeping track of your webshop’s financial administration. As an entrepreneur, you are legally required to do this for tax purposes. Additionally, it is mandatory to file VAT returns each quarter. A well-organized bookkeeping system ensures that you know exactly how much VAT you need to remit to the tax authorities.

Not only is online bookkeeping essential for tax compliance, but it also provides insights into the financial health of your webshop.

Also read: Accounting for Webshop Owners

What is a Payment Service Provider (PSP)?

Your webshop accounting includes your entire financial administration. To generate revenue, it is essential that customers can pay for your products.

This is where a Payment Service Provider (PSP) or payment system comes in. PSPs facilitate transaction processing between you and your customers by working with banks, card networks, and payment platforms to ensure that every payment safely reaches your bank account.

With a PSP, you can offer various online payment methods in your webshop. Providing multiple options ensures that your customers always find a payment method they trust. Consider adding at least the following payment options: iDEAL, PayPal, credit card, direct debit, and post-payment options.

The most well-known payment providers

There are many different payment providers, making it difficult to choose. Below, we have listed the most well-known providers for you:

Mollie
Buckaroo
cm.com
Pay.
Adyen
Stripe
PayPal
Rabo Smart Pay

Learn more about these payment providers and their pros and cons in our blog: Which Payment Providers Are Available?

The components of your webshop accounting

Once you have chosen a PSP and offer various payment methods, you can start generating revenue. This is a key part of your bookkeeping, which consists of all financial aspects of your webshop, including income, expenses, accounts receivable, and accounts payable. It is also important to track the VAT you collect and pay.

What Are Accounts Receivable and Accounts Payable?

An important part of your webshop accounting is managing accounts receivable and accounts payable. These terms are often mentioned together, but they are not the same. Accounts receivable refers to customers who still owe you money, while accounts payable refers to the suppliers or vendors you still need to pay. A handy way to remember the difference: Receivables Need to be Paid, Payables Can Cash Out.

Single-entry or double-entry bookkeeping?

Before starting your webshop accounting, you must decide whether to use single-entry or double-entry bookkeeping. The choice depends on the size, complexity, and needs of your business. If your turnover exceeds €500,000 (excluding VAT) or if your business is a corporation or large company, double-entry bookkeeping is mandatory.

Single-Entry Bookkeeping

As the name suggests, single-entry bookkeeping is a simple form of bookkeeping where only purchases and sales are recorded without tracking unpaid invoices or debts. This method is mainly used by small businesses and freelancers.

Double-Entry Bookkeeping

In double-entry bookkeeping, each transaction is recorded twice: once on the debit side and once on the credit side of your balance sheet. The debit side lists your assets, while the credit side shows how these assets were financed. The total sum on both sides must always be equal.

Free accounting starter guide

In our helpful accounting starter guide, you'll find all the information you need to start bookkeeping for your online store. Including a handy checklist for free dopamine kicks!

How to start with online bookkeeping?

Now that you know the components of webshop accounting and have chosen between single-entry or double-entry bookkeeping, you need to know how to proceed. Below are the essential steps to start your webshop accounting:

Set up a general ledger account structure.
Create an opening balance.
Record the correct data.
Determine financial changes.
Verify all data.
Pay webshop taxes on time.

Managing Your Own Webshop Accounting

If you choose to manage your own bookkeeping, you stay directly involved in all financial transactions within your company. This gives you immediate insight into your financial health and helps you decide when to expand or slow down operations.

ou can also (partially) outsource your bookkeeping, but this is often only worthwhile for larger businesses. Outsourcing bookkeeping costs money and is only beneficial if your business generates sufficient revenue.

Tips for Your Online Accounting

Starting with online bookkeeping can seem overwhelming. Here are some tips to make it easier and even enjoyable:

Keep everything organized and start early.
Set fixed days for bookkeeping tasks.
Use accounting software.
Work accurately.
Ensure VAT rates are correct.
Mark tax deadlines in your calendar.
Learn about tax deductions and other benefits.
Don’t hesitate to ask for help.

Consider the tax retention obligation

In the Netherlands, all entrepreneurs must comply with a tax retention obligation, which requires you to keep your webshop’s financial records for seven years. The tax authorities must be able to review your records at any time to verify compliance with tax obligations. Ensure your online bookkeeping is always accurate.

The best accounting software for your webshop

Bookkeeping can be time-consuming, especially when starting. An accounting software solution can help by providing real-time financial insights, automatically handling VAT returns, and sending reminders for outstanding invoices.

The best accounting software for your webshop depends on your preferences and needs. Here are some simple accounting software options:

Exact Online: Feature-rich software with a user-friendly interface.
Moneybird: A comprehensive accounting package focused on invoice processing.
SnelStart: Scales easily with your business through different plans.
e-Boekhouden.nl: Recognized by the tax authorities and very user-friendly.
Twinfield: Offers extra features such as generating an annual financial report.

Automating your webshop accounting

Online bookkeeping can be time-consuming, but automation can save time and reduce errors. An automated bookkeeping system ensures your records are always up to date.

Automatic Invoice Processing

One of the tasks you can automate is invoice processing. The Dutch government has even made electronic invoicing mandatory for businesses working with them. Many accounting software solutions can automatically process incoming invoices and generate outgoing invoices for sales transactions.

Automatic Bank Reconciliation

Bank reconciliation involves matching financial transactions with invoices in your accounting records. While you can do this manually, automatic bank reconciliation makes it much easier. Simply import your bank statements or PSP transactions into your accounting software, which will automatically match transactions with outstanding invoices.

Integrating Your Accounting Software with Other Business Software

To automate your bookkeeping further, it is recommended to integrate your accounting software with your webshop and other business applications. This allows essential data such as orders, customer information, and inventory levels to sync automatically.

Combidesk offers various accounting integrations. For a fixed monthly fee, you get a ready-to-use connection between your accounting software and your CRM, payment provider, and webshop. Check out all available integrations here.

Free accounting starter guide

In our helpful accounting starter guide, you'll find all the information you need to start bookkeeping for your online store. Including a handy checklist for free dopamine kicks!

Online Accounting