With a drop shipping business, you set-up a digital storefront, process orders, and have a supplier ship the goods directly to your customers. With a drop shipping business, you don't need to manage a physical inventory; however, you do have to keep on top of your booking right from the start.
#1 Keep Track of All Expenses
First, you need to keep track of all of your expenses. With a digital business, there is a high likelihood that a lot of your receipts are digital.
As a small business owner, the thought of an audit from the Canada Revenue Agency (CRA) may leave you feeling quite anxious. The good news is that an audit isn't the end of the world. With the help of an accountant, like Tony Tiani & Co Inc Prince George, your business can get through the audit without it leading to the demise of your business. Ideally, though, you will avoid the hassle and expense of an audit in the first place.
If your bank reconciliation is off at the end of the month, you may be getting a little frustrated. Depending on the volume of transactions you do, it can be extremely difficult to find a single error. But it's still important to track down any issues. Even a seemingly minor problem, such as being off a few cents, could actually signify a larger accounting problem.
1. Transposition Errors
A transposition error is very simple.