ECommerce Bookkeeping vs. Accounting

eCommerce bookkeeping and eCommerce accounting are very different beasts. Though they sound like similar concepts, there is a distinction to be drawn here that is worth understanding.

Bookkeeping simply refers to the maintenance of financial transactions and records — keeping the books updated, essentially. This can include recording transactions, invoices, accounts receivable and payable, balance sheets, and payroll. eCommerce bookkeeping is simply noting down transactions as they occur.

Accounting is a more detailed process. eCommerce accounting doesn’t just involve taking notes on your finances but using eCommerce accounting software to analyze these records. Accountants create reports, models, forecasts, perform audits, tax planning, tax reporting, financial forecasting, and risk analysis.