How to Read and Analyze Your eCommerce Income Statement

Understanding how to read and analyze your eCommerce income statement is so important in helping you make important business decisions. This video is the second in our series of eCommerce financial statement videos:
1. "An Intro to Financial Statements | For eCommerce Businesses": • An Intro to Financial ...
2. "How to Read and Analyze Your eCommerce Income Statement": • How to Read and Analyz...
3. "How to Read and Analyze Your eCommerce Balance Sheet": • How to Read and Analyz...
4. "How to Understand Your eCommerce Cash Flow Statement": • How to Understand Your...
This video covers the parts of the income statement, specifically in the context of a typical product-based eCommerce business:
- Revenue
- Cost of Goods Sold (COGS)
- Gross Profit Margin (GPM)
- Expenses and Overhead
- Net Income
During the video, our eCommerce accounting guru walks you through an income statement example in QuickBooks Online.
Your income statement is only as good as the information and data that it reflects. Therefore, this video dives into the details of of not only understanding your eCommerce income statement, but how to make it accurate. We cover some of the most common mistakes we see from eCommerce owners and bookkeepers, and ways you can setup your books to understand performance across multiple channels and products.
Download our "Five Signs of Bookkeeping Trouble with an Ecommerce Business" - ledgergurus.co...
For help with your eCommerce accounting, you can view our services here: ledgergurus.co...
Other related content:
"An Intro to Financial Statements | For eCommerce Businesses" - ledgergurus.co...
"E-commerce Income Statement; Accounts That Need Some Extra Love" - ledgergurus.co...
"How to Build a Budget for Your Ecommerce Business" - ledgergurus.co...
"E-commerce Balance Sheet; The Most Important Accounts to Get Right" - ledgergurus.co...
"Cost of Goods Sold - A key Number for Ecommerce Businesses" - ledgergurus.co...
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[@geraldp.2281]

Amazing videos.

[@natedonovan3030]

"Ballers manage net income" lol this video was like EXACTLY what I needed. I had LedgerGuru setup our QB last week & am now going through all of your guys KZbin content. So so so good... can't wait to hire y'all as our book keepers one day :)

[@LedgerGurus]

Yay! So glad! We are excited to work with you also in the future!

[@Michael-te6tb]

This is amazing information. Thank you

[@muhammadtariqkhan6467]

Great teacher . showing the difference b/w conventional Accounting and e-commerce Accounting

[@LedgerGurus]

Thank you.

[@LedgerGurus]

Please comment with your questions. For *help with your eCommerce accounting* , view our services here: ledgergurus.com/services/

[@jackturner5736]

Great Video. Just wondered where your actual product cost are against sales. I like to add run a report for items sold and calculate the cost of those goods, then add this in as a stock expense entry, to give a true profit for the month.

[@LedgerGurus]

We usually maintain a separate cost product catelogue outside of QBO.

[@jakesilverstein1]

Your videos are excellent. You're a great teacher. Can you create a video on %'s to target for the e-commerce specific KPI's. I recognize this is subjective to an extent and the ambition of the business owner plays a key part, but maybe there are specific numbers an acquirer would look for when considering whether the business is successful and worthy of investment.

[@LedgerGurus]

Jake, great suggestion. We cover some important ecommerce KPI's in the end of this PDF download on Preparing Early for an Ecommerce Exit: ledgergurus.com/resources/downloads-2/preparing-early-for-an-ecommerce-exit-a-checklist-of-what-to-do-now/ We also have it on our content schedule to dive in deeper on ecommerce KPI's in some videos

[@jakesilverstein1]

@@LedgerGurus Awesome!

[@joeanntorricer835]

♥️💯💕💜✅

[@mariabenjumea8403]

Hi, do you recommend to record our sales on Amazon by product type?

[@LedgerGurus]

That creates an awful lot of extra work, so only if there's value to you by doing it that way.