In this episode of The eCommerce Profitability Show, host Dan Little is joined by Chloe Fallon, Director of Lodestar Accounting.

Join them as they discuss:

The strategic impact of a virtual financial director (FD)
Financial planning insights for business success
How tech integration transforms accounting
Why new entrepreneurs should hire an accountant from day one

Chloe is an experienced chartered accountant with vast experience in the industry. She possesses expertise in Xero, Receipt Bank, bookkeeping, VAT returns, personal tax return preparation, cash flow forecasting, payroll, and general accounting. Previously, she held the role of Cloud Accounting Manager at Inform Accounting.

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Episode Highlights:

03:22 - 06:05 - Strategic Financial Planning for Business Success: While Lodestar doesn't exclusively serve eCommerce clients, the challenges and questions they face are common to all businesses, with cash flow concerns at the forefront. Most clients wonder whether they have sufficient funds to sustain their business and comply with regulations to avoid failure within the first year. When it comes to addressing these issues, Chloe highlights the importance of accurate bookkeeping, using software like Xero to establish a clear financial baseline, allowing for effective cash flow forecasting and strategic planning to manage funds and secure additional financing through partnerships.

06:10 - 09:11 - How Tech Maximises Business Efficiency: Chloe highlights the practical approach Lodestar takes towards technology integration, using specific tools to enhance business efficiency and address core needs rather than chasing the latest tech trends. Key components of their tech stack include Dext for purchase invoice processing, Link My Books for sales, and AccountingFly for cash flow forecasting, budgeting, and reporting.

10:35 - 13:49 - How a Virtual FD Can Transform Your Business: A virtual finance director (FD) helps businesses during growth phases by providing essential financial oversight and insights without the overhead of a full-time role. This service emerged from client needs, especially for those who find themselves managing complex financial data daily and require strategic guidance to stay focused on long-term goals. It involves preparing monthly reports, analysing data to ensure alignment with business goals, and offering regular consultation to maintain accountability. For eCommerce businesses, the added perspective of an external financial advisor can be valuable in making informed decisions and optimising expenses like digital advertising.

17:18 - 20:02 - Hire an Accountant from Day One: Many new entrepreneurs try to manage their startup's accounting on their own to save money, but this often leads to costly mistakes. Common pitfalls include mismanaging inventory accounting, misunderstanding revenue as it appears in bank statements, and misaligning sales with their actual occurrence. Starting with an accountant from the beginning helps avoid these mistakes and provides financial insights that can help decision-making, which is crucial, given that a significant number of startups fail within their first year.

For Accurate eCommerce Accounting, request a demo today: https://calendly.com/d/z79-vmh-y25

This podcast is created by our friends at fame.so

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