Accounting Services
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Outsourced Accounting

Expertly trained accountants with a deep understanding of the software and your industry,

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Family Office Accounting

High-touch technology family office accounting services that ensure security and privacy.

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Bill Pay

Outsourced bill pay solution with cash flow reporting and tracked expenses.

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What Are Outsourced Accounting Services and Do I Need Them?

If you are asking yourself these two questions, you've come to the right place.

What’s the Difference Between CFO and a Controller - and What Do I Need?

Although these two important roles are sometimes viewed as interchangeable there are important differences between them.

Industry Expertise
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Our Key Industries

Expert knowledge and high-quality software solutions for our 5 key industries.

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Construction & Real Estate

Real-time financial data and integrated job costing to generate reports and improve accountability.

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Manufacturing & Distribution

Track billing of materials, implement inventory control systems, manage supplier base, and reduce unnecessary costs.

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E-Commerce

Our team has the expertise needed to navigate deposits, refunds, chargebacks, and processing fees to maximize efficiency.

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Professional Services

Streamline financial operation and increase overall profitability to enable faster and smarter decisions.

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Family Office Accounting

High-touch technology family office accounting services that ensure security and privacy.

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Why does industry expertise matter?

Industry focus allows us to be experts in the accounting needs of the companies that operate within these industries.

Why Plumb Works With These Industries

This is another one of our favorite questions. The answer is easy: we know these industries.

Software Expertise
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Sage Software

Innovative software to manage your accounting, people, payroll, payments, and more.

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NetSuite Software

Integrated cloud business software suite, including business accounting, ERP, CRM and ecommerce software.

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QuickBooks Software

Scalable solutions for reporting, transactions, month-end close, analysis, and more.

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QuickBooks to NetSuite Migration: A Comprehensive Guide

Migrating from one accounting software platform to another is a critical undertaking for businesses. This is especially true when considering a transition from QuickBooks to NetSuite.

How do I know which Software is right for my company?

Selecting the "right" software for your company might seem like an overwhelming task, but we'd like to help make this process easier for you.

Sage
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Sage Software

Innovative software to manage your accounting, people, payroll, payments, and more.

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Sage Intacct

Automate the critical processes, reduce the spreadsheet headaches, and get greater visibility into real-time business performance.

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Sage 300 CRE

Sage 300 Construction & Real Estate connects finances and operations to help ensure maximum profit.

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Sage 100 Contractor

The all-in-one construction software that goes beyond basic accounting to put you in total command of your projects.

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Sage Estimating

Build bids quickly and precisely, plus integrate with other Sage software solutions to streamline operations.

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Sage Paperless

Easily store, retrieve, and route documents for accounting and operations.

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Sage Service

Streamline service calls and construction projects from start to finish with web-based real-time information.

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Additional Solutions

Add-on these services to improve workflow and enhance data and analytics.

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How and When to Choose Construction Accounting Software?

The right tools can help you manage your construction projects efficiently, provide clarity of your finances, and ultimately help improve profitability and job success.

5 Types of Visibility Every Construction Firm Should Have.

Here we list 5 key elements to help capture insights that are pivotal to running an efficient and lucrative constriction firm.

ABOUT
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About Plumb

Plumb seeks to empower business owners and leaders to gain clarity about their financials to grow their business.

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Case Studies

Learn more about our work with clients in a variety of different industries.

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Meet the Team

Learn more about the Plumb leadership team.

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The Plumb Promise

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Careers

Want to join us? Check out our current open positions and apply today.

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What can Plumb Do for Your Business?

At Plumb we pride ourselves on providing "clarity in accounting and stewardship in service." But what does that actually mean?

What's the Plumb Promise and What's in it for You?

We're on a continuous journey to go above and beyond for our clients. Here's how we do that.

6 Ways Ecommerce Companies Should Prep for Financial Audits

Posted on April 21, 2023 at 2:05 PM
Written by Plumb

Ecommerce companies have experienced rapid growth in recent years, which is why it's important to be prepared for financial audits. Financial audits can provide insights into the company's financial health and help detect any discrepancies in the financial records.

Here are some ways ecommerce companies can prepare for a financial audit:

  1. Organize financial records: Ensure that financial records are accurate, up-to-date, and well organized. This will make it easier for the auditor to review the information and avoid any potential errors.

For e-commerce companies, areas that are often overlooked and can cause headaches and trouble down the road, are reconciling your Shopify, Venmo, Zelle, Amazon, eBay, and PayPal accounts. If you don’t know how to do this correctly, it is well worth your time and your money to hire an expert to do so for you. We often see transactions hiding in certain clearing accounts in the balance sheet, which means non-accurate financials are being provided at year end. This has major tax implications. Another common issue is the incorrect implementation of sales tax systems. It’s very important to ensure that your sales tax system is working properly to ensure no issues arise during audit.

  1. Review internal controls: Companies should review their internal controls to ensure that they are functioning effectively. This includes checks and balances, such as segregation of duties, to prevent fraud and ensure accurate financial reporting.

We’ve said it before, and we’ll say it again: with e-commerce companies, permissions are EVERYTHING. You’ll want to have a trained expert review all your ERPs to set strict parameters around who is allowed to do what. We’ve seen some “creative” ways that people have used their access improperly. You want to get ahead of this and set-up the appropriate processes and permissions.

  1. Ensure compliance with tax laws: Tax laws change frequently, so it's important for companies to stay informed and ensure that they are compliant with current tax laws.

In the e-commerce arena, the biggest tax laws that we see causing trouble is sales tax and nexus law and payroll. You must ensure you are compliant when hiring outside your headquartered state, and you need to work with a consultant to establish your proper sales tax compliance.

  1. Maintain accurate inventory records: Accurate inventory records are essential for an e-commerce company. An auditor will want to review the company's inventory to ensure that it is accurately reflected on the balance sheet.

This tip applies to some e-commerce as well as some Manufacturing & Distribution businesses. I always tell my clients not to hold on to inventory they won’t sell, and to make sure to have a system in place to do an inventory count. You do not need a fancy barcode scanner if that’s something that’s out of the budget. Get out of your seat and go do a manual count. You want to make sure you are managing shrink while also cleaning out old inventory that’s taking a) shelf space, and b) that’s actually a write off sitting there on your shelf! If you don’t do it, the auditor will 100% make you do a full count and ask these questions.

  1. Prepare for questions: It's important to be prepared to answer any questions the auditor may have. This includes questions about financial statements, business practices, and internal controls.
  1. Engage an experienced auditor: An experienced auditor will be able to provide valuable insights into the company's financial health and help identify areas for improvement.

Ecommerce companies should be proactive in preparing for financial audits. By organizing financial records and reconciling accounts correctly, reviewing internal controls and setting proper permissions, ensuring compliance with tax laws, maintaining accurate inventory records, preparing for questions, and engaging an experienced auditor, e-commerce companies can ensure a successful financial audit. And when in doubt, seek the assistance of experienced accounting professionals to help guide you through the process seamlessly.

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