The Seller Ledger team has released a number of enhancements to help you get more insights from your eCommerce financial data.
View Profit or Loss by Sales Channel
Are you a multi-channel seller? Have you wanted to view the sales and expenses specifically for one of those channels? Well, now you can. We have added a new “filter” under the Profit and Loss report:
You may also notice in that screenshot above, a new report for “Expenses by Vendor.” If you missed our previous blog post announcing that, you can learn more about it here.
Select a date range in Account views
While we have had this available in the Income and Expense tabs for a little while, we also recently rolled out the ability to select a custom date range when you click into any account view from your Dashboard:
More forgiving date selector
We have heard from a number of users that the date selector can be finicky, especially when trying to type in dates (the final value, year, often reacted too quickly.) This has now been improved. If you try typing in the start or end date rather than selecting from clicking the calendar icon, you should see a significant improvement.
We’ve made several changes over the past few weeks to make it easier to see the most important information on your Seller Ledger screen.
Account balance details
When clicking into an account view from your Dashboard, we had previously shown the balance details at the top (including totals funds, available funds, etc.) by default. However, because customers tend not to rely on these details every time they click into the account, we have moved them under a new “Balance” button:
Click to expand
Click the green “Balance” button to see the balance detail information:
Click on the same button to hide these details. This reduces valuable vertical screen real estate and fits more transactions on the screen.
Rapidly categorizing transactions
Again, in an effort to make better use of vertical screen real estate, we’ve also changed the interaction for bulk editing of uncategorized transactions, pleasing everything on the same row:
Changing category of individual transactions
In an effort to make each transaction row more readable, and to save space, we have combined the visual cue for changing a transaction category with the category name, especially for uncategorized transactions:
Please let us know what you think of these changes by contacting us at [email protected]
As we all work our way through the 2023 tax season, the team at Seller Ledger has begun working on improvements to help give you better insight into your business.
Expenses by vendor
You will notice a new report under the “Reports” tab – one called “Expenses by Vendor”:
This report is made possible because of some important functionality we’ve added to transaction tracking. As you can see from the following example, there is now a new “contact” field in Seller Ledger account views, labeled as “Transacted with”:
This field allows Seller Ledger to group spending amounts by the name of each “contact”.
Now, you may notice that the information coming in from banks and credit cards is hard to group unless the names here make sense. This can be due to a variety of reasons:
Paper checks – In those cases where you must write a paper check to a vendor, most banks simply provide a description about the check itself, not the name of the vendor.
Very long, hard to decipher descriptions – Sometimes we just can’t tell who the vendor or customer is. In those cases, we default to “Unassigned.”
Similar, but not quite identical names – This varies by bank, but sometimes they use very small variations in vendor names that can make it hard to group transactions together
Fortunately, Seller Ledger has implemented a number of features to help you quickly edit these contact names.
Editing Contacts
Next to each “Transacted with” name, you’ll now see an edit icon. Click that to either choose a “contact” that’s already in the system, or add a new one:
Now, editing each transaction one at a time might make sense for paper checks, but for most imported transactions, you’re going to want to edit them in bulk. And for that, we’ve added each of the following capabilities:
Multiple select: choose multiple transactions and edit them in one step.
Filter by “unassigned”: to see all of your transaction where we are unable to guess at a contact name, choose “unassigned” from the list of filter options.
Sort by “Transacted with” and by “Description” fields: for those pesky, small variations of the same name, it sometimes helps to sort so that similar names are grouped together.
Hopefully, this helps provide a bit more insight into how your business is doing. Stay tuned for more updates along these lines, as we have big pans for 2024.
For eCommerce merchants who want to track their inventory stock levels and per-item gross profit, we’ve now made it easier for higher volume sellers to load their inventory information into Seller Ledger.
If you make large purchases from certain vendors, and don’t want to type all of those items into Seller Ledger, there’s now an easy way to upload your items (and cost information) via a CSV file. Simply generate a comma-separated file that contains columns with headings of “sku“, “product name“, “quantity” and “total cost” and upload it inside of any of your inventory purchase transactions.
Not only can this help you save time when entering purchase information, but it comes in particularly handy if you want to start the year off fresh, or import inventory from another platform.
To help eCommerce sellers better match the 1099-Ks that get filed by online payment providers, Seller Ledger today announced support for local US based time zones.
Why is this important?
When Seller Ledger imports your transaction history from different online sales channels and banks, we receive them with timestamps (which, if you’re curious, might look something like “Tue, 26 Dec 2023 15:14:01.753000000 UTC +00:00”) You may notice the “UTC” in there – that stands for Universal Time Coordinated (it used to be called Greenwich Mean Time) and it’s 5 hours ahead of EST (or 4 hours ahead during daylight savings.)
However, online marketplaces, when providing transaction totals and reports, tend to use the customer’s local time zone to calculate those totals. So, to help make sure you can match the numbers that online marketplaces are reporting (and be consistent with the IRS from year to year,) we have now added the same time zone support.
Seller Ledger now allows you to search among your income and expense transactions. In addition to filtering transactions by date range or category, you can also now search using specific words that show up in your transaction descriptions.
For example, let’s take a look at a full list of “Income” transactions below:
Now let’s say I wanted to see just the sales of Hess Trucks with the “Dragster” included. Simply type “Dragster” into the “Search” box, hit return and voila:
We know folks have also requested similar search capability within Inventory, and that is on the list. In the meantime, please let us know what you think of this functionality, especially any ways that we can make it better by emailing us at [email protected].
To help reduce data entry for poorly support banks and credit cards, Seller Ledger has now added the ability to import transaction history via CSV formatted files.
This will come in handy in a couple of scenarios:
Poorly supported banks
While we do have great coverage of most banks and credit cards through our banking partner, Plaid, we have learned of a few cases where a certain bank or account type isn’t well supported (often from small regional credit unions.) In these cases, if your bank or credit card account is not well supported via direct integration, you can add a new account that supports CSV-formatted files.
Just click “Add an account” from your dashboard, and on the right-hand side of your screen, you will see a new link under the Add Bank… button.
Clicking that link brings you to a new screen where you can choose the type and name of your bank or credit card account:
Choose the type of account, give it a name and click “Create Account.” Doing so will add a new account to your dashboard and allow you to upload a CSV file of your transaction history, much like you can do for Poshmark and Mercari.
Then go to your bank or credit card’s website and download transaction history using the CSV (aka “comma-separated”) format.
Also note: for any customers still in their trial period, Seller Ledger still applies the same 90-day history window, and will ignore transactions outside that range.
Banks with limited transaction history
As a policy, we ask customers to commit to an annual plan in order to go back and get more than 90 days of transaction history. While we have a good track record with online sales channels and many banks, some banks simply do not provide more than 60 or 90 days. Fortunately, this new CSV file support allows you to go back and upload older transaction history. Just click into your connected bank or credit card account, choose the Upload History tab (as seen above,) and upload the CSV file you downloaded from your bank.
We continue to make this new CSV feature more flexible, so if you come across an issue, please let us know at [email protected] and we’ll work to improve it.
We recently received a question about whether sales tax should be included when calculating cost of goods sold. Because this is a very common scenario, we decided that this would make an interesting blog topic.
There are actually a couple of key questions here:
When you buy items for resale, what gets included in Cost of Goods?
If you buy multiple different items in a single transaction, how do you allocate any sales tax, shipping or other extra costs across those items?
What is included in Cost of Goods?
When you purchase items for resale, all of the direct costs you incur should be included in Cost of Goods. This can include the following:
Sales tax
Shipping costs (to deliver the items to you)
Extra fees (e.g. extra charges for paying by credit card)
Handling fees
So, if you buy an item for $100 and get charged $7.75 in sales tax, your Cost of Goods for that item should be $107.75.
How do I handle extra costs for purchases of multiple items?
The same rules apply in terms of including sales tax, shipping and other fees. However, when these extra costs apply to multiple different products, you need to allocate them based on the relative values.
Let’s take a look at an example. Imagine you have a receipt that looks something like this:
You spent $309.60 to acquire 600 items (500 of Widget 1 and 100 of Widget 2.) But the items themselves only cost $250. So what do you do with the other $59.60? Here, a little math is involved. Take the amount spent on the first item (Widget 1: $200) and divide it by the total spent on all items ($250.) Widget 1 represents 80% of your item costs. As such, Widget 1 should have 80% of the sales tax and shipping costs allocated to it. So, multiply the $59.60 in extra costs by 80%, and you’ll get $47.68 in extra costs that should apply to Widget 1. The remaining $11.92 in extra costs should be allocated to Widget 2.
The net result of these allocations gives you total Cost of Goods of:
Widget 1: $247.68 (for 500 items) or a per-item cost of $0.50
Widget 2: $61.92 (for 100 items) or a per-item cost of $0.62
You may notice there’s a potential rounding issue here, which we’ll address in a future blog post. Stay tuned:)
In Seller Ledger, once you categorize the purchase of $309.60 as “Inventory”, you might see a screen like this:
Just click “Add Details” and enter your newly allocated cost information like this:
Please note: this is only possible if you’re choosing to use item-level tracking in Seller Ledger. You can learn more about it by reading our support article.
We also have it on our list to automatically allocate costs based on the underlying receipt, so stay tuned for that too.
In summary – yes, sales tax, shipping and other fees should be included in Cost of Goods Sold. Hopefully this makes the subject a bit easier to understand.
As always, we’d love to hear any feedback you might have on the product, as well as any other critical questions you have about eCommerce accounting, bookkeeping, inventory and Cost of Goods Sold. Please reach out to us at [email protected].
eCommerce sellers, large and small, now have the ability to track inventory with Seller Ledger. Until now, customers could only write off inventory as “cost of goods sold” when purchased. But no longer!
Why track inventory in Seller Ledger?
There are a number of reasons to track inventory:
For most eCommerce sellers, the IRS requires that you do so.
It better aligns costs with your sale.
If done properly at the item level, it can help automate accurate stock levels (avoid stockouts,) as well as tell you how much money you make on individual orders and items.
So what does Seller Ledger offer in terms of eCommerce inventory tracking?
There are now 2 main ways to track inventory in Seller Ledger: what we call “balance-level” and “item-level” tracking.
Do you already keep a spreadsheet of all of your inventory, including how much you paid for each item? When an item sells, do you have to go back and update it? Have you tried to figure out how much money you make on each sale? If you can answer “yes” to any of these questions, then this option is for you.
While a bit more effort is required, the steps are quite simple:
When you purchase goods for resale, categorize them as Inventory purchases
Within each purchase, enter each item, including a unique SKU value, and the item’s cost. This process works very similar to splitting transactions.
Alternatively, you can start from your list of sold items (the order history we’ve already imported for you) and just tell us which purchase transaction included the item sold.
If you provide Seller Ledger with this level of detail, we do a few things for you automatically when an item sells (matching first based on SKU first, then by name):
We reduce the stock level for that item in your inventory
We calculate and generate the cost of goods for that item
You do not. If you would prefer to just categorize inventory purchases as “cost of goods sold,” you are free to do so. But, you might want to make sure you understand the risks with that approach. We’ll be writing another post about that option soon.
How do I try this out?
Just discovering Seller Ledger? Start a 30 day free trial right now – no credit card required.
For existing customers, just log into Seller Ledger, and you will see two new changes to the website. First, on the left of your Dashboard, we have added and made visible a new “Inventory” asset account. Second, there is a new top-level navigation link for Inventory. For those who previously categorized inventory purchases as “cost of goods sold,” you can elect to switch to properly tracking inventory. We explain more about how that works here.
Is there an additional charge for tracking inventory in Seller Ledger?
No – this feature is available to all customers at no additional charge. Unlike other accounting/bookkeeping platforms, we think even the smallest sellers should be able to see how much money they make on each item and keep on top of their inventory stock levels.
Please tell us what you think
This is a pretty big release, and represents weeks of work and planning. It’s also something we never got to tackle with Outright/GoDaddy Bookkeeping. As such, we’d love to hear from you as you try this new functionality – the good, the bad and the ugly.
Another one of the most frequently requested enhancements has arrived: the ability to split transactions into multiple categories.
Do you have charges on your credit card for multiple items that belong in different categories? Do you have deposits in your bank account from marketplace payouts that represent net amounts, after combining sales, shipping and subtracting fees. Well, you no longer need to choose a single category for each of those. Now, when you click the button to “Categorize” a transaction, you will see a new option to “Split” that transaction:
Now, click on the “Split Transaction” to break that transaction into multiple categories:
Notice that as you enter an amount in each row, the remaining difference is updated, to let you know how much of the original transaction you still need to account for. As you can see, you also have the ability to “Add Splits” to provide more detail.
For those of you selling on platforms like Poshmark, Mercari and others, who don’t provide APIs, this feature should help you get your numbers more accurate (in order to better match any 1099-k’s you may received.) Though feel free to contact those platforms and tell them to “get with the times”:)
As always, please let us know what you think of this change by emailing us at [email protected].
