Understanding Accounting Operations for Clients

Introduction

This guide aims to help clients understand the role of accounting operations in managing their financial accounts. Our goal is to ensure that your financial data remains accurate and up-to-date without requiring you to handle technical accounting issues.

What We Do

Our accounting operations team is responsible for setting up and maintaining various financial accounts, such as Shopify and Amazon clearing accounts, inventory, and undeposited funds. Here are the primary tasks we handle:

Account Setup

• Initial Verification: When setting up a new account, we verify if the necessary rules for clearing accounts (like Shopify and Amazon) are in place.
• Routing Rules: We ensure that payouts from platforms like Shopify are correctly routed to the appropriate clearing accounts.

Monthly CPA Checking

• Balance Investigation: During monthly checks, we investigate any anomalies, such as ever-increasing Shopify clearing account balances.
• Payment Gateway Identification: We identify the payment gateway used (e.g., Stripe, PayPal) and set up rules to ensure accurate categorization of inflows.
• Client Review: After making adjustments, we explain the changes to you and ask for your review.

Inventory Management

• Balance Issues: We investigate and correct negative or continuously increasing inventory balances.
  • Increasing Balance: If the inventory balance is increasing, we adjust the Cost of Goods Sold (COGS) percentage based on historical data.
  • Negative Balance: If the inventory balance is negative, we check for missing opening balances or insufficient transactions categorized as Inventory Assets.
• Client Review: After making adjustments, we explain the changes to you and ask for your review.

Undeposited Funds and Expenses

• Issue Investigation: We investigate issues with undeposited funds or expenses.
• Rule Creation: We create appropriate rules to resolve these issues.
• Client Verification: We ask you to review and verify the changes.

Documentation

• We document common data integrity issues and the troubleshooting tactics we use to resolve them, such as:
  • Shopify clearing account balance issues
  • Inventory balance issues
  • Undeposited funds or expense issues

Responsibilities

• Accounting Operations/CPA: Our team is responsible for identifying, investigating, and resolving any financial issues.
• Client: Your role is to review and verify the changes made by our accounting team.

Key Points

• No Technical Burden: You are not required to solve technical accounting issues.
• Clear Communication: We ensure clear communication regarding any changes made to your accounts.

Conclusion

Our objective is to streamline accounting operations and maintain data integrity while minimizing your involvement in technical issues. If you have any questions or need further clarification, please do not hesitate to reach out to us.

We are here to help manage and optimize your financial data effectively.