We'll consistently provide bookkeeping updates for your electronics store. Urgent queries that need immediate attention? Expect our response within one business day or even less.
Bench Accounting's platform is designed to automate data inputs from prominent providers, greatly reducing the risk of errors. We team up with leading merchants such as Gusto, Stripe, Shopify, and Square, ensuring that your electronics store's financial records are consistently precise.
Bid adieu to heaps of invoices and tedious manual record-keeping—we automate inputs directly from your connected accounts. Gain insights from one unified dashboard so you can effortlessly comprehend the financial status of your electronics store and make strategic decisions.
DR. BUKKY KOLAWOLE
Accounting for electronics stores takes into consideration unique aspects such as product depreciation and warranty costs. Here's how it works:
Product Depreciation: This is the reduction in value of an electronic product over time due to factors like wear and tear or obsolescence. The rate of depreciation often adheres to a predetermined schedule based on the product's estimated useful life. Electronics stores write off this depreciation as a business expense over a specified period. This practice decreases the store's taxable income, hence reducing its tax liability.
Warranty Costs: Electronics stores often offer their customers warranties on products sold. These warranties are considered as potential liabilities because if a product fails, it can cost the store to repair or replace it. As such, an allowance for warranty costs is usually set aside as an expense in the accounting period when the sales were made. This helps in matching this expense with related revenue, which aligns with the matching principle in accounting.
If you still have questions about accounting for your electronics store or need a professional bookkeeper, Bench Accounting is here to help!
The correct way to manage and track inventory for an electronics store using bookkeeping practices involves multiple steps:
- Consistent Documentation: Maintain consistent invoices, receipts, purchase orders, and more. This helps in tracking when new inventory comes in and when it goes out.
- Periodic Inventory System: This is a system where store stock is physically counted on a regular basis. The figures are then updated in the bookkeeping system.
- Perpetual Inventory System: This is an approach where an inventory management software immediately updates your accounting system whenever a sale is made.
- Valuation: Use FIFO (First-In, First-Out) or LIFO (Last-In, First-Out) principles to value inventory. This impacts reported profit and tax burdens.
The best practices also involve reconciling any discrepancies between your documented inventory and actual stock, and having regular audits. With careful tracking and management, you can ensure a more accurate financial picture of your business.
Sales tax for multiple-state online sales in the electronics retail industry can be complex because tax laws vary from state to state and special rules may apply for different types of electronics. Generally, you should calculate sales tax based on the buyer's location if your business has nexus in that state. Nexus means you have sufficient physical presence, and it can be a physical location, employees, or even certain sales volumes.
After identifying which states you have nexus in, you can calculate the sales tax using the tax rate for each specific state. Keep in mind that some states have different tax rates for different types of electronics. If this is the case, you need to apply the correct rate for each item in your inventory.
Ideally, to avoid errors and maintain accurate financial records, you should use an automated sales tax solution integrated with your bookkeeping software. This will record and calculate sales taxes on each sale transaction, based on the provided shipping details.
Remember, rules might vary, so it's always best to consult with a tax professional or a knowledgeable bookkeeper familiar with multi-state sales tax laws in the electronics retail industry.
Nope! All bookkeeping is completed in-house.
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.
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.