Do you trust your financial statements? Reconciliation tools for Online Retailers

Do you trust your financial statements? Does your cash account in Quickbooks match your bank statement? Would you like to reconcile costs with sales on an order/product levels and see how profitable your business really is?

Practically every company I work with desperately needs real time accurate financial data to make best pricing and marketing decisions and Quickbooks wasn`t simply designed to handle tens of thousands of transactions, follow a "reasonable proof of shipment" revenue recognition rule or accrue for cost of goods invoices due in 30-90 days. So, what`s the best way to do managerial accounting in the high velocity negative cash cycle online retail world?

Periodic audit is one way. This is the best solution if you are entering into a business deal and need an external verification of your numbers. Downsides are:
  • A $10-15K fee for something that was obsolete before it was completed;
  • High internal costs (e.g. having your accounting department paralyzed for 2-4 weeks);
  • You have to do everything all over again every time you need accurate financials.
A massive export of transactional and financial data to Excel is a better option. However manual and time consuming, you reconcile tens of thousands of orders with appropriate costs, get to the real margins and can identify the products that either have too much margin built in or too little. Downside - maintenance becomes an issue. Once the person who built the table moves on to other projects - the system becomes less and less accurate and you lose the temporary advantage over competitors.

The very best solution is a database connected to your Order Management, Quickbooks and shippers` billing systems. There are multiple buzzwords for something that stores the data and produces reports: Data Warehouse, Business Intelligence, Business Warehouse etc. For simplicity I will call it by it`s primary function - a reconciliation system.

Benefits of reconciliation system are numerous:
  • Verification of your company`s tax return numbers;
  • Practically real time vendor/ product margin analysis;
  • Easy way to compare accruals with actual expenses (COGS, Shipping, Marketing etc).
Having built such systems for two clients I highly recommend starting with a standalone solution, replicating your chart of accounts, fine-tuning allocation rules and check consistency of the data. Then test on a large amount of historical data (e.g. FY2008) and compare with your year-end results. Since we have replicated your chart of accounts - comparison is easy, just print P&L statements from QuickBooks and the reconciliation system and compare them account-by-account. I bet there will be a lot of interesting discoveries.

In addition to accurate historical statements such system gives you a real edge over the competitors. You become able to make pricing and investment decisions on the fly.

Let`s say you want to experiment with a free shipping - run it on a product category (or a store) for two weeks. Compare sales/ net margin with prior two weeks and see if free shipping is the right solution for this particular product set.

Or, throw in free gift-wrapping for one week and see if you should keep it for the rest of the holidays season.

Or, reduce your target margin from 30 % to 28 % and see what impact it has on your sales/ total net margin for the specific product line. Opportunities are endless.

I believe that systems should help people manage complex businesses through simple decisions such as Set target margin at X %, add free shipping or spend Y % of sales on PPC marketing. Therefore, every system I build addresses a specific need:
  • Reconciliation system to get accurate financials and identify products with excessive/ inadequate margin requirement;
  • Shipping script to calculate per product shipping costs using negotiated rates with the shippers;
  • Pricing script to automate retail price calculation based on actual costs and target margins; and
  • Product sourcing solution to enable retailers build "One Store A Day" and double their sales every three months.
If you have questions about one my solutions - please send me a note to or call at 650 209 6570. My clients win - I win.

Have fun growing your business and happy holiday season.

Labels: , , , , ,


Blogger Unknown said...

Nice! Really cool stuff and very inspiring. Thanks for sharing!
Web Designing Company In Chennai

March 27, 2015 at 6:28 AM  
Blogger Unknown said...

Very informative post! Quite interesting to read your blog.

April 12, 2015 at 11:29 PM  
Blogger Unknown said...

Very detailed article. Happened to learn some new things from this. So thanks.

Web Designing Training in Chennai

July 31, 2015 at 9:58 PM  
Blogger Abir said...


September 12, 2015 at 8:26 PM  
Blogger Unknown said...

Yes I trust financial statement. If this type of statement made correctly it can help find out business overall revenue and other expenses analyze. Glad to learn some effective ways to grow business and all! Part of the solution is making sure everyone on your team is on the same page in regards to business revenue and expenses. Collaboration via analytics tools such as Panxpan finance summary module can help with this.

September 13, 2015 at 9:19 PM  
Blogger Unknown said...

Great post. I really enjoyed reading it. So thanks.

school logo design

October 7, 2015 at 3:54 AM  
Blogger Unknown said...

You shared very useful post. Thanks for sharing.
Catering Services in West Mambalam

October 28, 2015 at 11:09 PM  
Blogger Unknown said...

Good post. very informative, Thanks for sharing this post.
SEO Training Certification

October 29, 2015 at 9:29 PM  
Blogger Unknown said...

world-wide-web development can be highly popular for the industry due for its various advantages. several companies tend to be looking for secure, speedy, compatible world-wide-web development website design services

March 23, 2016 at 11:50 PM  
Blogger Unknown said...

Superb i really enjoyed very much with this article here. Really its a amazing article i had ever read. I hope it will help a lot for all. Thank you so much for this amazing posts and please keep update like this excellent article.

SAP training in Chennai

April 6, 2016 at 3:43 AM  
Blogger Unknown said...

wow, great, I was wondering how to cure acne naturally. and found your site by google, learned a lot, now i’m a bit clear. I’ve bookmark your site and also add rss. keep us updated. flipkart offers & coupons

May 3, 2016 at 12:24 AM  
Blogger Unknown said...

The information shared is very useful for us, thanks for sharing Nebosh course in Chennai|
NEBOSH International Diploma|NEBOSH International General Certificate|IOSH Course in Chennai|Nebosh course in Dubai|NEBOSH International Diploma in Dubai|NVQ Diploma|NEBOSH IGC in Dubai

May 17, 2016 at 1:40 AM  
Blogger Unknown said...

Thanks for sharing this Post, Keep Updating such topics.

May 26, 2016 at 11:15 PM  
Blogger Unknown said...

Thanks for the post and keep posting more like this Nebosh courses in Chennai| Nebosh course in Chennai| Nebosh course in Dubai | BSS Safety Diploma

June 4, 2016 at 1:14 AM  
Blogger Unknown said...

web designing company in Hyderabad ,Web designing is nothing but creating a website. In 1990’s, World Wide Web came in to picture, in those days may be

web designing company in hyderabad

June 27, 2016 at 4:59 AM  
Blogger Unknown said...

Thanks for sharing such a nice article. It is really useful to me and all people. One think in my mind came while reading that it is not wasting of time.

July 5, 2016 at 1:58 AM  
Blogger deeksha said...

your economy articles are really good and thus it makes me to think , how to invest in many more ways and it is very much cumulative and eminent too.

Salesforce Training in Chennai Adyar

July 5, 2016 at 11:41 PM  
Blogger Unknown said...

thank you for the information here. It was much useful and please keep update like this.
Voice Over Agents

July 11, 2016 at 2:40 AM  
Blogger Angel said...

This is a wonderful article, Given so much info in it, These type of articles keeps the users interest in the website, and keep on sharing more ... good luck.granite supplier in india

August 3, 2016 at 11:13 PM  
Blogger Angel said...

Such a very useful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article.affordable luxury travel

August 3, 2016 at 11:13 PM  
Blogger Angel said...

I want you to thank for your time of this wonderful read!!! I definately enjoy every little bit of it and I have you bookmarked to check out new stuff of your blog a must read blog!!!! Angel investment in India

August 3, 2016 at 11:14 PM  
Blogger Anna Schafer said...

A debt of gratitude is in order for giving late reports with respect to the worry, I anticipate read more. Buy Dissertations

February 25, 2017 at 8:33 AM  
Blogger Unknown said...

I like it your blog. Thank you for Sharing the valuable information!
erp in chennai | erp providers in chennai

March 13, 2017 at 12:11 AM  
Blogger Unknown said...

Really Nice Blog. Thank you for Sharing. We are the best erp software providers in chennai. For more details call +91 9677025199 or email us on
ERP Providers Chennai | ERP in Chennai

March 13, 2017 at 1:42 AM  
Blogger Anna Schafer said...

It was good experience to read about dangerous punctuation. Informative for everyone looking on the subject.

June 15, 2017 at 4:38 AM  
Blogger Unknown said...

Finding a reputable payday loan company is important if, you find that you need to take out a payday loan. Check their reputation on the Better Business Bureau website, to see if they are rated well. When applying to an online company, make sure they use secure encryption technology to transfer your information.

prestamos economicos

July 6, 2017 at 5:06 AM  
Blogger ALINAAMEL said...

October 12, 2017 at 2:23 AM  
Blogger Unknown said...

The website is looking bit flashy and it catches the visitors eyes. A design is pretty simple .
office 2010 professional plus key deutsch

November 6, 2017 at 9:00 PM  
Blogger ALINAAMEL said...

Interesting post! This is really helpful for me. I like it! Thanks for sharing!
WebDesign Lüdenscheid

December 14, 2017 at 11:05 PM  
Blogger Unknown said...

Hello, Premium templates Wordpress of any subject here -

February 24, 2018 at 11:07 AM  
Blogger brunagari said...

really good
jobbörse südwestfalen

February 27, 2018 at 8:44 PM  
Blogger Unknown said...

Thanks for sharing a wonderful information.Its more useful and more helpful. Great doing. Keep sharing..
MCA Project Center in Chennai | MCA Project Center in Velachery

March 22, 2018 at 4:52 AM  
Anonymous Solusi atasi Sakit kepala Vertigo said...

This information is very useful. thank you for sharing. and I will also share information about health through the website

Cara Menyembuhkan Nyeri Punggung
Pengobatan Alami untuk Tipes
Cara Mengobati Kuku Cantengan
Cara Menyembuhkan Sakit Maag Kronis
Cara Menghilangkan Stretch mark
Cara Mengobati Epilepsi

March 24, 2018 at 12:30 AM  
Anonymous Obat Koreng Bernanah Alami said...

It is great to have visited your website. Thanks for sharing useful information. And also visit my website about health. God willing it will be useful too

Cara Mengobati Cacingan pada Anak
Cara Mengobati Usus Buntu
Obat Benjolan di Belakang Telinga
Obat Telinga Berkerak dan Berair
Cara Membersihkan flek di paru-paru
Obat Sakit perut melilit paling Ampuh

March 24, 2018 at 12:32 AM  
Anonymous Obat Penghilang Jerawat dan Bekasnya said...

It is great to have visited your website. Thanks for sharing useful information. And also visit my website about health. God willing it will be useful too

Pengobatan Scabies secara Alami
Obat Benjolan Di Ketiak
Cara Menghilangkan Bekas luka
Cara Cepat Mengatasi Iritasi Kulit
Khasiat dan manfaat QnC Jelly Gamat
Obat Sakit Dada
Obat Tumor Jinak diatas Bola Mata

March 24, 2018 at 12:32 AM  
Anonymous Dissertation Writing Services said...

I read this article. I think You put a lot of effort to create this article. I appreciate your work.
Dissertation Writing Services

April 20, 2018 at 2:10 AM  
Blogger brunagari said...

jobbörse Neunkirchen

May 20, 2018 at 11:44 PM  
Blogger Health Tips said...

affordable health insurance plans ky I have to show appreciation to this writer just for bailing me out of such a trouble.

September 12, 2018 at 6:00 AM  
Blogger Munir Commerce College said...

health tips and hacks

September 13, 2018 at 7:16 AM  
Blogger Unknown said...

Hey Very Nice Blog!!! Thanks For Sharing!!!!
clipping path
ghost mannequin
background removal
car photo editing

September 30, 2018 at 1:07 AM  
Blogger gowthunan said...

safety course in chennai

iosh course in chennai

nebosh course in chennai

fire and safety course in chennai

industrial course in chennai

best safety training in chennai

November 12, 2018 at 4:11 AM  
Blogger Sannihitha Technologies said...

Great place to learn new things and got the best
hardware and networking course in hyderabad

January 10, 2019 at 4:53 AM  
Blogger sheela rajesh said...

thank you so much for the effort you have made for this blog.I am awaiting for such kind of ideas like what you have shared with us.
iOS Training in Chennai
Big Data Training in Chennai
Hadoop Training in Chennai
Selenium Training in Chennai
Digital Marketing Training in Chennai
JAVA Training in Chennai
German Classes in chennai
Android Course in Chennai
Android Training in velachery

January 25, 2019 at 1:42 AM  
Anonymous Anonymous said...

It is very good and very informative. There is a useful information in it.Thanks for posting...

April 3, 2019 at 1:41 AM  
Blogger for ict 99 said...

Great Article
Project Centers in Chennai
Final Year Project Domains for CSE

JavaScript Training in Chennai
JavaScript Training in Chennai

May 4, 2019 at 3:41 AM  
Anonymous Tangki Fiber said...

I feel this is among the such a lot vital info for me. And i am satisfied studying your article. However wanna commentary on few general things, The website style is ideal, the articles is truly nice
Tangki Panel
Tangki Fiberglass
Jual Septic Tank

May 8, 2019 at 6:30 PM  
Blogger daphnemohara said...

Nice post. Thanks to sharing your information. Keep posting valuable post.
Safety Courses in Chennai
Safety Institute in Chennai
NEBOSH Safety Course in Chennai
NEBOSH Course in Chennai
ISO Consultants in Chennai
Electrical Safety Audit
IOSH Course in Chennai

May 17, 2019 at 11:12 PM  
Blogger Aparna said...

Truly well post...! I learn more ideas to read your great post and do well...
Oracle Training in Chennai
Oracle course in Chennai
Tableau Training in Chennai
Spark Training in Chennai
Excel Training in Chennai
Primavera Training in Chennai
Appium Training in Chennai
Power BI Training in Chennai
Pega Training in Chennai
Oracle Training in T Nagar
Oracle Training in Porur

July 5, 2019 at 4:29 AM  
Blogger Rigid Box said...

Excellent Blog. I really want to admire the quality of this post. I like the way of your presentation of ideas, views and valuable content. No doubt you are doing great work. I’ll be waiting for your next post. Thanks .Keep it up!
Kindly visit us @
Luxury Boxes
Premium Packaging
Luxury Candles Box
Earphone Packaging Box
Wireless Headphone Box
Innovative Packaging Boxes
Wedding gift box
Leather Bag Packaging Box
Cosmetics Packaging Box
Luxury Chocolate Boxes

August 6, 2019 at 12:07 AM  
Blogger KIT said...

Nice blog, it's so knowledgeable, informative, and good looking site. I appreciate your hard work. Good job. Thank you for this wonderful sharing with us. Keep Sharing.
Kindly visit us @
100% Job Placement
Best Colleges for Computer Engineering
Biomedical Engineering Colleges in Coimbatore
Best Biotechnology Colleges in Tamilnadu
Biotechnology Colleges in Coimbatore
Biotechnology Courses in Coimbatore
Best MCA Colleges in Tamilnadu
Best MBA Colleges in Coimbatore
Engineering Courses in Tamilnadu
Engg Colleges in Coimbatore

August 7, 2019 at 3:14 AM  
Blogger Online Shopping Lucky Draw Winner said...

Nice Post thanks for the information, good information & very helpful for others. flipkart lucky draw For more information about Online Shopping Lucky Winner, Flipkart, HomeShop18, Shopping Lucky, Draw, Contest, Winner, Prize, Result, 2018 - 2019 Flipkart Lucky Draw Winner

September 18, 2019 at 9:32 PM  
Blogger KIT said...

A very inspiring blog your article is so convincing that I never stop myself to say something about it.

October 4, 2019 at 12:03 AM  
Blogger KIT said...

A very interesting blog....

November 15, 2019 at 1:14 AM  
Blogger Malaivel Siddha Hospital said...

Wonderful post, This article have helped greatly continue writing ..

November 15, 2019 at 9:06 PM  
Blogger Malaivel Siddha Hospital said...

I´ve been thinking of starting a blog on this subject myself .....

November 15, 2019 at 9:10 PM  
Blogger Itools Mobile Service said...

Thanks for sharing information. I really appreciate it.

November 22, 2019 at 1:14 AM  
Blogger Chris Hemsworth said...

I have been reading for the past two days about your blogs and topics, still on fetching! Wondering about your words on each line was massively effective. Techno-based information has been fetched in each of your topics. Sure it will enhance and fill the queries of the public needs. Feeling so glad about your article. Thanks…!
magento training course in chennai
magento training institute in chennai
magento 2 training in chennai
magento development training
magento 2 course
magento developer training

November 26, 2019 at 2:31 AM  
Blogger zuan said...

Thanks for sharing an informative blog keep rocking bring more details.I like the helpful info you provide in your articles. I’ll bookmark your weblog and check again here regularly. I am quite sure I will learn much new stuff right here! Good luck for the next!
Web Designing Training Institute in Chennai | web design training class in chennai | web designing course in chennai with placement
Mobile Application Development Courses in chennai
Data Science Training in Chennai | Data Science courses in Chennai
Professional packers and movers in chennai | PDY Packers | Household Goods Shifting
Web Designing Training Institute in Chennai | Web Designing courses in Chennai
Google ads services | Google Ads Management agency
Web Designing Course in Chennai | Web Designing Training in Chennai

November 26, 2019 at 4:27 AM  
Blogger Naveen S said...

This is the first & best article to make me satisfied by presenting good content. I feel so happy and delighted. Thank you so much for this article.

Learn Best Digital Marketing Course in Chennai

Digital Marketing Course Training with Placement in Chennai

Learn Digital Marketing Course Training in Chennai

Digital Marketing Training with Placement Institute in Chennai

November 26, 2019 at 5:29 AM  
Blogger SS Vermicompost Industry said...

Thanks for sharing such a great blog
Vermicompost manufacturers in Tamilnadu | Vermicompost in Tamilnadu
Vermicompost Manufacturers | Vermicompost Suppliers
Vermicompost in Coimbatore | Vermicompost manufacturers in Chennai
Vermicompost in chennai | Best Vermicompost in chennai

June 18, 2020 at 1:03 AM  
Blogger tjproductstech said...

Hi, Very nice article. I hope you will publish again such type of post. Thank you!
Corporate gifts ideas | Corporate gifts
Corporate gifts singapore | Corporate gifts in singapore
Promotional gifts singapore | Corporate gifts wholesale Singapore
Business card holder singapore | T shirts supplier singapore
Thumb drive supplier singapore | Leather corporate gifts singapore

July 4, 2020 at 12:19 AM  
Blogger SS Vermicompost Industry said...

Thanks for sharing such a great blog
Vermicompost manufacturers in Tamilnadu | Vermicompost in Tamilnadu
Vermicompost Manufacturers | Vermicompost Suppliers
Vermicompost in Coimbatore | Vermicompost manufacturers in Chennai
Vermicompost in chennai | Best Vermicompost in chennai

July 21, 2020 at 12:18 AM  
Blogger tjproductstech said...

Hi, Very nice article. I hope you will publish again such type of post. Thank you!
Corporate gifts ideas | Corporate gifts
Corporate gifts singapore | Corporate gifts in singapore
Promotional gifts singapore | corporate gifts supplier

July 31, 2020 at 11:24 PM  
Anonymous kalyanam matrimony said...

nice information...Good blog. Keep it up. If you want want know more click here.

October 13, 2020 at 5:00 AM  
Blogger Itools Mobile Service said...

Thanks for sharing this information. I really appreciate it.
Iphone service center in tnagar | Iphone service center in chennai
Lenovo mobile service center in Tnagar | Lenovo Mobile service center in chennai
Moto service center in t nagar | Motorola service center in t nagar
Moto Service Center in Chennai | Motorola Service Center in chennai

October 23, 2020 at 2:25 AM  
Blogger prathyusha said...

Incredibly in general very intriguing post. I was looking for such an information and took pleasure in scrutinizing this one. Keep posting. An obligation of appreciation is all together for analytics course in Hyderabad

October 30, 2020 at 9:40 PM  
Blogger Pathway for German Language said...

This comment has been removed by the author.

December 16, 2020 at 11:33 PM  
Blogger Radley Co Tad said...

Machine Learning Projects for Final Year machine learning projects for final year

Deep Learning Projects assist final year students with improving your applied Deep Learning skills rapidly while allowing you to investigate an

intriguing point. Furthermore, you can include Deep Learning projects for final year into your portfolio, making it simpler to get a vocation,

discover cool profession openings, and Deep Learning Projects for Final Year even arrange a more significant


Python Training in Chennai
Python Training in Chennai

Angular Training Project Centers in Chennai

December 29, 2020 at 10:07 PM  
Blogger arshiya said...

Your post is very good and unique. I am eagerly waiting for your new post.
impact of social media marketing
artificial intelligence uses
artificial intelligence technology today
use of php language
rpa developer jobs
salesforce integration interview questions

January 8, 2021 at 11:27 PM  
Blogger Altaj Shoes said...

Interesting stuff to read. Keep it up.Adidas showroom in madurai
Woodland showroom in madurai | Skechers showroom in Madurai
Puma showroom in madurai

March 1, 2021 at 11:13 PM  
Blogger thomasjack said...

Great post I like it very much keep up the good work.
Cigarette packaging sleeves
colourful Cardboard boxes

April 27, 2021 at 11:47 AM  
Blogger nayar said...

Great post.Thanks for sharing such a worthy information...
Digital Marketing Courses in Bangalore
digital marketing course in pune
digital marketing course in hyderabad
digital marketing course in gurgaon

May 20, 2021 at 7:24 AM  
Blogger Serina johson said...

Such a great post I like it very much keep it up.
Handover box manufacturers USA
Lingerie box company

May 25, 2021 at 3:30 PM  
Anonymous vé máy bay đi Canada said...

Mua vé tại đại lý vé máy bay Aivivu, tham khảo

kinh nghiệm mua vé máy bay đi Mỹ giá rẻ

vé máy bay từ los angeles về việt nam

vé máy bay khứ hồi từ đức về việt nam

dịch vụ vé máy bay tại nga

chuyến bay từ anh về việt nam

các chuyến bay từ châu âu về việt nam

June 16, 2021 at 8:19 PM  
Blogger nayar said...

Awesome blog. Thanks for sharing such a worthy information....
Dot Net Training in Gurgaon
Dot Net Training in Mumbai
.net coaching in kolkata
Dot Net Training in Gurgaon

June 19, 2021 at 6:37 AM  
Blogger Aishwariya said...

Very professionally written blog. Regards to your hard work and effort. Looking forward to learn a lot more from you. Do share more.
Reactjs Training in Chennai |
Best Reactjs Training Institute in Chennai |
Reactjs course in Chennai |

June 20, 2021 at 1:04 AM  
Blogger Clipping Pacific said...

Nice blog. Thanks for sharing this post.
Clipping Path Photoshop

August 30, 2021 at 10:55 PM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home