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Tired of late and inaccurate accounting?
It’s time for a change. It’s time to get smarter.
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Finaloop
1,580 posts
Finaloop
@FinaloopTeam
Flawless DTC/ecomm real-time bookkeeping & tax using Finaloop
- 1/Call it supply chain, call it value loop - one thing's for sure: today we announce a $35M Series A funding led by @lightspeedvp thanks to the ecosystem’s belief in our mission to help DTC founders become financially savvy, profitable, and FINALLY trust their numbers.
- We manage bookkeeping for hundreds of DTC brands. These 6 common accounting mistakes may be costing you millions:
- You might know Matt Kelly (@Matthucius) as the founder of @Spacegoods. But before Spacegoods, he scaled another brand to €10m+ in just 18 months. Then he lost it all. The mistake? Not understanding cash management. Here’s the story and 6 of his hard-earned lessons:
- We’ve reviewed 200+ ecommerce brands’ bookkeeping. We’ve seen the good, the bad, and the ones that should be sued for negligence. Here’s a real-life example from a brand we audited:
- If your business is an LLC or LP, you can save tens or hundreds of thousands of $$ by converting to an S corp. Made $500k in net income? → You can save about $50k/yr Made $1m in net income? → You can save over $100k+/yr Here’s what you need to know:
- Your P&L is crucial to knowing how well your business is doing. We’ve seen the structure behind the brands that scale to 8 figures and beyond. They all include a well-defined Chart of Accounts. Here’s how the best structure theirs:
- Replying to @FinaloopTeamLet's recap. How to avoid losing money through accounting errors: 1. Focus on net revenue 2. Track your variable costs 3. Properly calculate inventory costs 4. Understand the cost of financing 5. Simplify sales tax compliance 6. Use a Chart of Accounts specific for ecommerce
- How fast can you turn your inventory into sales? Your cash conversion cycle (CCC) says more about your brand’s health than the $XX millions you made in sales. Here’s why: 🧵
- This mistake costs brands MULTI-MILLIONS in taxes: Brands that operate using the wrong entity type.
- GoDaddy Bookkeeping discontinued...Finaloop is a great, affordable alternative: software + FULL accounting service 100% for ecommerce brands Never deal with bookkeeping again!🚀#ecommerce #Shopify #dtc #amazonseller #ebayseller #ecommercebusiness Here 👇
- If you’re an S corp and don’t want to be audited by the IRS, read this 🚨: One of the TOP causes of IRS audits for S corps is not paying yourself a high enough salary. Here is what you need to know to stay off the IRS’💩list. A thread 🧵
