Dec 6, 2017
The four pillars that add value
to an internet business are:
- Growth Opportunities
- Documentation / Financials.
Documentation is completely
under an entrepreneur’s control, and is arguably the most important
of the four pillars for web based business owners. Having good
documentation and clean financials will bring more value to an
online business, instill more confidence in website buyers and help
you get a better deal structure if and when you decide to
Simply put, Excel is not
accounting software and we’ve experienced buyer blow-back
from multi-million dollar website listings that only use Excel for
their accounting. If you want to have a good transaction for
maximum value, with as few headaches as possible you have to have
good financial records and documentation.
Getting there can be a challenge
though, if accounting is not your forte. Expert bookkeeper Matt
Remuzzi from CapForge is an eCommerce expert and manages the books
for hundreds of online businesses.
In this podcast, Matt shares
some tips to make your web based business bookkeeping easy, have
your write-offs maximized without flagging an IRS audit, and have
your 1099s from Amazon and other 3rd party platforms match your tax
returns. He even shares tips on when to start collecting sales
taxes and the right accounting method to bring maximum value if you
ever decide to sell your online business.
- Matt’s background. An MBA and entrepreneur
himself, he now runs a bookkeeping firm focused on helping online
business owners keep clean financials.
- Clients are FBA sellers, Multichannel sellers,
and SaaS business owners. They look at each project and customize
it and then put it into Quickbooks.
can hire a professional online bookkeeper for $100-$400 a
financials help you set the right source for your
- Tracking and measuring results help you adjust
and pivot when required.
- Accounting software makes your website business
value higher and you more flexible when required.
- Lenders such as the SBA require tax returns to
tie out to P&Ls exported from Quickbooks. With improper
accounting files good deals fall apart.
- Capforge can do 100% of the bookkeeping without
the entrepreneur getting involved. They can take the admin task off
of their plate. Plus it is done by professionals.
website business clients are brought on and records go back to the
day the day the business launched. They want to work from the
source material or statements to reconcile everything.
- Matt’s team makes sure there is a trail of
expenses you claim in the event you are ever audited.
process starts with a simple client instruction sheets.
entrepreneur still owns the QB files / account and has 100% access
to the files.
the correct way to log the Amazon income in Quickbooks so the tax
returns matches your Amazon 1099 the IRS receives.
Quickbooks financial statements should match what Amazon sends the
IRS on the 1099s.
the difference between cash and accrual accounting, and why it
matters so much to total value when selling or buying an online
did a valuation on a cash based business and adjusted it to accrual
and found $250,000 in value.
why accrual based accounting is the right way to manage the books
and how it can bring more value when selling an online
- Capforge will do all of the bookkeeping for a
web based business owner and allow them to focus on running the
business. The cost is MUCH LOWER than hiring a bookkeeper in
- Regarding sales taxes, consider collecting in
your home state until you are big enough to have it “makes sense”
financially. And go with what you are comfortable with.
sure the cost of sales tax compliance makes financial sense for
your small business. If it is 10x what you are collecting/paying in
sales tax, then it may not make sense to collect.
what you can write off and what write offs are red flags to the
and entertainment are not a big piece of an online business.
Writing off multiple vehicles is a hard to swallow number. Matt’s
team will go through every client and try to find
home office deduction is completely legitimate.
- CapForge takes on startups to large online
businesses. They love to help people start out on the right
can range from $100 to $400 a month. And all clients have 100%
access to their account.