You sell digital stuff.
Maybe you're selling a subscription for content you develop, a paid-for blog, videos, music, training content, ebooks, or 3D printer images. Or maybe you're selling your coaching or training services. You are different from other ecommerce sellers because you do not have a physical product to ship or inventory to maintain. Although many accountants may understand the nature of your business, they can't handle managing the flow of data. But we can.
Here are your challenges:
- Security - you need to make sure that customers can only access the information they've paid for and not share it for free across the internet. You also need to ensure that subscribers only access their own information.
- Managing Site and Content - you want your site to be fresh and relevant by continually developing and posting new content. You also spend time managing reviews, adjusting pricing, and providing discounts and special deals. All of this takes time, and you need to monitor how pricing and discounts impact your bottom line.
- Customer Service - keeping the customers happy is mission critical, so you need to stay on top of providing good customer support, providing feedback, answering questions, issuing refunds, and dealing with chargebacks.
- Affiliates and Partners - most digital goods businesses derive sales from marketing through bloggers, other peers, and others who drive content to your site. In many cases you provide commissions, and if this isn't set up right, it can be insanely time-consuming and make you want to pull your hair out.
- Cash Flow - it's challenging to know when you should be paying yourself more, increasing your marketing or affiliate base, or setting money aside for future needs. You need guidance on managing multiple credit cards, handling expired credit cards, acquiring alternative financing (i.e., Kabbage or PayPal loans), or getting a bank loan.
- Accounting - you may know if you're making a profit on what you sell, but you don't know if that's enough to support your overhead or the growing needs of your business. You don't know if you're profitable overall, and you don't know which of your products is making the most money.
- Sales Tax - you have to collect sales tax for sales in states where you have "nexus," and of course, you then need to remit it to the government. But guess what? Digital products are taxed in some states and have a crazy mix of rules based on the type of content, where you are, and where your servers are. (Have you checked lately in which state "the cloud" is located?) Yeah... it's just one more headache you don't have time to deal with.
Digital Accounting Services
Catching Clouds provides a complete outsourced ecommerce accounting service for your digital goods business.
Ecommerce consulting - ongoing business, technical, and process optimization guidance
Setup of integrated cloud accounting, cloud inventory, sales tax, and supporting tools
Virtual controller service
We're like no accountants you've ever met.