Difference Between E-Commerce Accounting and Bookkeeping

Difference Between E-Commerce Accounting and Bookkeeping

E-commerce accounting has been a beneficial source for upgrading a business track. With the help of manifestation of some basic principles of e-commerce, a company can survive and maintain its position throughout the corporate world. There exists a colossal completion between brands facilitating the same supplies, but the one who looks deeper and analyzes the needs is the one who excels. There are professionals offering specialized Bookkeeping for Ecommerce businesses so they can manage their financials better.

So, e-commerce accounting can prove to be a game-changer. By opting for its principles, one can rule over the business strategies by just sitting in a cubicle with a laptop holding in its hands.

Of course, e-commerce accounting is an advanced approach and has some crucial advantages over primitive bookkeeping. Sometimes, both these options are considered one, and the transition between the two is responsible for amplifying a specific strategy. No doubt, these two terms are pretty close to each other, but in a broader spectrum, they differ a lot. Both these practices hold different initiatives and different ending lines.


Bookkeeping is a pretty old methodology in which the transactions are recorded daily. Suppose we have a rented apartment that allows people to stay for one night at least. The daily rental income transactions are recorded. The moment one booked himself for the apartment and the one discharges himself are noted, the rents are then recorded. The money in your pocket is jotted down, and money invested in maintaining certain facilities is also jotted down. So it’s organized stuff. The moment you open the accounts, the account itself will tell you how and where money was spent and when and why it came into your account. So it’s an A to Z story of funds present in your bank account or money pot.


Accounting is also a form of bookkeeping but in the sense that it visualizes the data and help it amend in a profitable way for a company. Like in the case of a furnished holiday let, the allowances are noted. The expenditures on the apartment are reported, and despite having a complete chance to beautify the apartment, unnecessary things are deducted. No doubt, allowances on furnished holiday let allows you to spend and invest as maximum as you can, but wisely saving your money along with the embellishment process is what will make you rich. Cutting redundant expenditures and looking for cheaper alternatives is a wiser way, and that’s what accounting does to your business.

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Twist of technology

It will be appreciable to consider both bookkeeping and accounting as integrated concepts because both are incomplete without each other. It’s a supreme rule that first transactions are recorded in simple data entry, and then the strategies are executed to cut down the waste expenditures. So, it’s a related process. But the main twist is the incorporation of technology and other statistical charts and graphs in bookkeeping and accounting. Two new technology-related products are launched – e-commerce accounting and e-commerce bookkeeping.

It’s not a shock that technology has helped humanity in many ways. The chance of errors is reduced and minimized to the extent that the cases of the error have become zero while impregnating technology into different fields. The graphs are plotted accurately.

The data has been preserved in excel sheets for a long time, and the websites like Shopify, Amazon, and other platforms have made everything accessible to every doorstep. Apart from all the sales and purchases being done through the platform, selling business items can also be manipulated using the same algorithms and coding. Now it’s time to convert your XYZ limited company to ZYZ 2.0 version!

E-Commerce Bookkeeping

The complete track of sales and purchases through your e-commerce website is recorded technically. The moment money enters into the bank account associated with your e-commerce website is recorded, as well as the moment money leaves your affiliated bank account. Each transaction is noted.

Amazingly, in e-commerce accounting, the whole procedure is not done manually but with the help of software, computers, and engineers. Because considering a small company, it’s a handy process. But once your XYZ limited company expands globally, it becomes very difficult or almost impossible to keep track of all the transactions.

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Transactions are not only sales and purchase-related, but your money can leave and enter your bank account due to multiple reasons. Some of them are listed below, primarily the sales and purchase itself.

  • Assets are the things that a company owns, and therefore company spends money to make the specific item part of the company. You can count it as a purchase
  • Company also pays to gather raw material for itself, and therefore such transactions can be recorded as expenses
  • A specific company makes money by selling its items, and such transactions fall into the category of revenue
  • Then there are certain tax liabilities to a company, so you have to pay for taxes
  • A company might opt for some loans to run some departments
  • A company might also have a cashback or return policy

E-Commerce Accounting

E-commerce accounting is twisted into the concepts of e-commerce bookkeeping. First, all sorts of transactions are recorded, and by all, we mean all. Only then can the accountants record the net profit of a company. Graphical analysis and specific charts can even help analyze future earnings by making the present a base. So overall, plus and minus are being done with the help of e-commerce accounting. If a particular item is not selling, different ways are utilized to make offers to sell that specific item. You might have seen buy one get one offer in markets and industries. These are strategies being implemented by e-commerce accounting to make the sale process faster.

Sometimes clearance of stock becomes the primary goal of e-commerce accounting and bookkeeping. Both the practices are being done to flourish a company to make sales as high as someone can. It will help establish the brand name and provide facilities to the people in a measured way.

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Shankar is a tech blogger who occasionally enjoys penning historical fiction. With over a thousand articles written on tech, business, finance, marketing, mobile, social media, cloud storage, software, and general topics, he has been creating material for the past eight years.

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