September 2022 - Learn & Grow Financial LLC

Bring to the table win-win survival strategies to ensure proactive domination. At the end of the day, going forward, a new normal that has evolved from generation.
by learnandgrow
September 27, 2022
BookkeepingKey Performance Metrics (KPIs)

The key performance metrics (KPI’s) you should understand as an e-commerce company

There are several key performance metrics (KPIs) that are important for ecommerce companies to track. Some of the most important ones include:

  1. Revenue: This is a crucial metric for any business, and ecommerce companies are no exception. Tracking revenue helps businesses understand how much money they are bringing in and whether their sales are increasing or decreasing over time.
  2. Conversion rate: The conversion rate is the percentage of visitors to a website who make a purchase. It’s an important metric for ecommerce companies because it helps them understand how effective their sales and marketing efforts are at turning visitors into customers.
  3. Average order value (AOV): The average order value is the average amount of money that a customer spends per purchase. It’s important for ecommerce companies to track this metric because it can help them understand how to increase customer spending and improve profitability.
  4. Customer acquisition cost (CAC): CAC is the cost of acquiring a new customer, and it’s important for ecommerce companies to track this metric to understand the efficiency of their marketing and sales efforts.
  5. Customer lifetime value (CLV): CLV is an estimate of the total value that a customer will bring to a business over their lifetime. It’s important for ecommerce companies to track this metric because it helps them understand the long-term value of their customer base and how to maximize it.
  6. Return on investment (ROI): ROI is a measure of the profitability of an investment or business activity. It’s important for ecommerce companies to track this metric to understand the efficiency of their marketing and sales efforts and to identify areas where they can improve.
  7. Traffic: Ecommerce companies should track the number of visitors to their website, as well as the sources of that traffic (e.g. organic search, paid advertising, referrals). This helps them understand how well their website is performing and where they should focus their efforts to drive more traffic.
  8. Customer satisfaction: Ecommerce companies should track customer satisfaction to understand how well they are meeting the needs and expectations of their customers. This can be done through surveys, customer reviews, and other methods.
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by learnandgrow
September 27, 2022
Management

Why is it important to higher a quality Chief Financial Officer?

A chief financial officer (CFO) plays a critical role in any organization, as they are responsible for overseeing and managing the financial operations of the company. Hiring a quality CFO is essential for the long-term success of your business, as they can help ensure that your financial strategies are sound and that your company is financially stable.

There are several reasons why it is important to hire a quality CFO:

  1. Financial expertise: A quality CFO brings a wealth of financial knowledge and expertise to the table. They are able to analyze financial data, create financial projections, and develop financial strategies that will help your business grow and succeed.
  2. Risk management: A CFO can help identify and mitigate financial risks that may impact your business. They can develop contingency plans to protect your company’s financial interests in the event of unforeseen circumstances.
  3. Strategic planning: A CFO can help develop long-term financial plans and goals for your business. They can also help allocate resources and make financial decisions that align with your company’s strategic objectives.
  4. Regulatory compliance: A CFO is responsible for ensuring that your company is compliant with all relevant financial regulations. This includes preparing and filing financial reports, adhering to tax laws, and following accounting standards.
  5. Investor relations: A CFO is often the point of contact for investors and shareholders. They can provide financial information and updates, and help build and maintain relationships with these important stakeholders.

In summary, hiring a quality CFO is essential for the financial health and stability of your business. They bring a wealth of financial expertise, can help manage risks, and play a key role in strategic planning and regulatory compliance. By investing in a quality CFO, you can set your business up for long-term success.

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by learnandgrow
September 1, 2022
Uncategorized

Why deferred revenue is important in ecommerce accounting & accrual based accounting

Deferred revenue is an important concept in e-commerce accounting, as it refers to revenue that has been earned but has not yet been recognized. In accrual-based accounting, revenue is typically recognized when products are shipped, rather than when payment is received. As a result, it is important for e-commerce businesses to understand deferred revenue in order to accurately track and report their financial performance.

There are several reasons why understanding deferred revenue is important in e-commerce accounting:

  1. It helps businesses accurately track and report their financial performance: By recognizing deferred revenue, businesses can accurately track and report their financial performance, as they are not recognizing revenue until it has been earned. This is important for providing a clear and accurate picture of the business’s financial position.
  2. It helps businesses manage their cash flow: Deferred revenue can have an impact on a business’s cash flow, as it represents revenue that has been earned but not yet received. By understanding deferred revenue, businesses can better manage their cash flow and plan for future expenses.
  3. It helps businesses comply with accounting standards: Deferred revenue is a key concept in accrual-based accounting, and understanding it is important for complying with accounting standards such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
  4. It helps businesses make informed business decisions: By understanding deferred revenue, businesses can make informed business decisions that are aligned with their financial goals. For example, deferred revenue can be used as a measure of future demand for a business’s products or services, which can be useful for forecasting and budgeting purposes.

In summary, understanding deferred revenue is important in e-commerce accounting, as it helps businesses accurately track and report their financial performance, manage their cash flow, comply with accounting standards, and make informed business decisions. Deferred revenue is a key concept in accrual-based accounting and represents revenue that has been earned but not yet recognized.

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