Bookkeeping and Accounting for Dropshippers

Looking for a bookkeeper and accountant tailored to your dropshipping business? At Bench Accounting, we handle your books, so you gain more time to optimize your ecommerce strategy. Kickstart your financial growth with our free trial.

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How Bench works with dropshippers

Get your bookkeeping, income tax prep, and filing done by experts who understand the intricacies of your dropshipping business—backed by one powerful platform. Bench is the ideal partner for dropshippers.

We get you set up

Our team dedicates time to thoroughly comprehend your dropshipping business, answer any queries, assist you in connecting your accounts, and guide you on how Bench functions.

We do your bookkeeping

Each month, your dedicated bookkeeper categorizes your dropshipping transactions and compiles meticulous financial reports. If they require any additional information from you, they'll reach out promptly.

We deliver tax-ready financials

Our Bench Accounting experts understand the complexities of tax rules relevant to dropshipping. They will tailor their approach to fit the unique needs of your dropshipping business.

Here’s why dropshippers like you trust Bench with their bookkeeping and accounting

Get fast, unlimited support from our expert advisors

At Bench Accounting, we understand that real-time bookkeeping is critical for thriving dropshipping businesses. That's why we ensure constant communication with regular updates on your books. Got burning queries that need immediate attention? We're committed to responding within one business day or less. Trust us to prioritize your bookkeeping needs, so you can focus on expanding your dropshipping endeavors.

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screenshot of Bench support app

Guaranteed accuracy in every detail

Our platform is designed to streamline data inputs from leading providers to eliminate common errors. We've partnered with popular platforms used by dropshippers such as Shopify, Stripe, and Square. This ensures your financials are always accurate - a necessity in the rapidly moving world of dropshipping.

See where you’re spending. Make smart decisions

Say goodbye to spreadsheets and hours spent manually monitoring transactions—our software automates inputs directly from your dropshipping accounts. With Bench Accounting, gain essential insights from one unified dashboard to easily assess the health of your dropshipping business and form strategic plans effectively.

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Bench integrates with your favorite small business tools

We sync seamlessly with your financial accounts and tools to keep your books up-to-date and save you the time and effort of manually uploading documents.

Trusted by 25,000+ American small business owners

“Bench helped me replace QuickBooks, and save about 6 hours per month of horrible accounting work, which is priceless.”

CHRIS RONZIO

CEO, TRAINUAL
“This is the first year where it’s tax season and I don’t feel anxious one bit.”

DR. BUKKY KOLAWOLE

FOUNDER/EXECUTIVE DIRECTOR, RELATIONSHIP HQ
“Bench has lifted a giant weight off my shoulders and freed up my time so I can focus on earning money and working with clients, meetings and calls.”

HEATHER SHOLL

FOUNDER, THE VILLAGES GYM
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We know bookkeeping for dropshippers

In the ever-evolving dropshipping space, maintaining your books isn't just important, it's imperative for your business' health and growth. Dropshipping businesses constantly deal with complex tax laws, varying across different regions and countries. Along with these diverse laws, tracking of inventory, revenue, and expense can be overwhelming. This is where Bench steps in. Our service is designed to keep up with the constantly changing tax landscape and complications of cross-border transactions. Our technology and real human bookkeepers will ensure that your books are accurate, up to date, and reflective of all industry-specific tax laws and requirements.

Moreover, the common bookkeeping issues that plague dropshippers, such as sketchy inventory records and complications managing returns, refunds, and exchanges, can all be expertly handled by Bench. Our intuitive software keeps track of every transaction and every product, ensuring that every cost is accounted for, and every revenue stream is captured. This not only simplifies the revenue recognition process, but also provides a clear and transparent financial picture of your business. With Bench handling your bookkeeping and tax, you can focus on what truly matters - growing your dropshipping business. We're rewriting the playbook on bookkeeping, offering a fresh take that's perfectly tailored to the unique needs and challenges of the dropshipping industry.

Simple, straightforward pricing for everything your business needs.

Get bookkeeping, tax prep, advisory, and filing with Bench's powerful, easy-to-use platform.

Choose Plan

Essential

Best for those looking for peace of mind and accurate financials done by professional bookkeepers.
$249/mo

billed annually

Dedicated bookkeeping experts
Accurate monthly books and year-end tax-ready financial packages
P&L, balance sheet and 1099 reporting
Unlimited communication with your bookkeeping team

Premium

Best for those looking for an all-in-one bookkeeping, tax advisory and income tax filing service.
$399/mo

billed annually

Everything in Essential plan
Dedicated team of licensed tax professionals to file your income tax return on time
Annual income tax filing for businesses (partnerships, S corps, C corps)
Annual income tax filing for individuals (sole proprietors, contractors)

Essential

Best for those looking for peace of mind and accurate financials done by professional bookkeepers.
$299/mo

billed monthly

Dedicated bookkeeping experts
Accurate monthly books and year-end tax-ready financial packages
P&L, balance sheet and 1099 reporting
Unlimited communication with your bookkeeping team

Premium

Best for those looking for an all-in-one bookkeeping, tax advisory and income tax filing service.
$499/mo

billed monthly

Everything in Essential plan
Dedicated team of licensed tax professionals to file your income tax return on time
Annual income tax filing for businesses (partnerships, S corps, C corps)
Annual income tax filing for individuals (sole proprietors, contractors)

Frequently Asked Questions

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How is bookkeeping for dropshipping businesses different from traditional retail businesses?

Bookkeeping for dropshipping businesses is markedly different from traditional retail businesses. The key differences arise in areas such as inventory management, sales tax, and overhead costs.

In a traditional retail business, entries for inventory management involve monitoring inventory levels, purchases, sales, and cost of goods sold, which requires an extensive bookkeeping process.

On the other hand, dropshipping businesses do not handle physical inventory, hence entries related to purchase and storage of goods do not exist. The cost of goods sold is directly recorded upon the sales transaction.

Secondly, sales tax varies significantly between traditional and dropshipping businesses. Traditional businesses are subject to sales tax regulations of their geographic location. Whereas, dropshipping businesses may engage with multiple suppliers from various locations, which may alter the complexity of their sales tax obligation.

Lastly, overhead costs in the dropshipping model are typically lower. There are fewer entries for expenses like rent, utilities, and storage, due to the virtual nature of the inventory. This results in its own unique bookkeeping considerations.

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What specific accounting challenges should I be prepared for in a dropshipping business?

Accounting in a dropshipping business comes with a set of unique challenges that you should be prepared for:

  • Inventory Management: Despite not having physical control over your stock, correct and up-to-date tracking of goods is vital for accurate financial reporting.
  • Managing Supplier Invoices: Juggling multiple vendors may cause complexities as you need to cross-check received goods with billed amounts and identify discrepancies.
  • Hidden Costs: Costs like customs duties and shipping fees may not always be clearly outlined by suppliers and could considerably impact your financial projections.
  • International Transactions: If you work with overseas suppliers, exchange rate fluctuations and related charges should be factored into your financials.
  • Sales Tax: Determining the applicable sales tax can be complicated as it depends on the location of your supplier, your customer, and your own business.

Given these challenges, engaging the services of a designated bookkeeper can be greatly beneficial. They can help ensure accurate financial records, monitor cash flow, and aid in strategic business planning.

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How can I efficiently manage sales tax compliance for multiple jurisdictions in dropshipping?

Managing sales tax compliance for multiple jurisdictions in dropshipping can be challenging but it's entirely manageable through proper strategies and tools. First, it's important to understand your tax obligations in each jurisdiction you operate in. This includes knowing the tax rates and rules in each of these jurisdictions. Once you have a clear understanding, you can use accounting software specifically designed for multi-jurisdictional tax compliance, like Bench. This software can automate the process of calculating, collecting, reporting, and remitting sales tax for all your transactions. Fourthly, you should conduct regular audits to ensure your compliance efforts are effective. Lastly, consider seeking advice from a tax professional well-versed in multi-jurisdictional sales tax compliance to help you stay in line with changing regulations.

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Does Bench outsource bookkeeping?

Nope! All bookkeeping is completed in-house.

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Will I have one point of contact?

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

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How much time each month will I have to spend managing my Bench account?

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.

Bookkeeping Services for Dropshippers

Sign up for a Bench trial, and get one month free. If you decide to go with us, we’ll take bookkeeping off your plate—for good.

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