Work with an expert eCommerce team.

From CFOs to books, we’ve got you covered.

Vanessa Kruze, CPA Kruze Consulting

Vanessa Kruze, CPA 
Kruze Consulting Founder
Former Startup Controller

AFFORDABLE STARTUP BOOKKEEPING AND ACCOUNTING

Check out Kruze's affordable monthly bookkeeping options. 

Monthly Company Expenses

Monthly costs vary based on your needs and company expenses.

$5,000
monthly startup expenses
Basic Bookkeeping

Ideal for angel funded companies

Starting at $275 per month

  • Dedicated Bookkeeper
  • Operations in 1 State
  • No HR Services
  • No State Tax Compliance
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Founder Timesaver

Great for busy founders

Starting at $375 per month

  • Dedicated Accountant
  • Operations in 2 States
  • HR Services Available
  • State and Local Tax Compliance
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Premium

Ideal for high-growth, well-funded businesses

  • Controller or Fractional CFO
  • Multiple States, International
  • HR Services Available
  • State and Local Tax Compliance
  • Complex Revenue Recognition
  • Custom Reporting

eCommerce Accounting - All you need to know

Why does good accounting matter for eCommerce companies?

Of all the online business models, eCommerce is perhaps the most complicated. From inventory management to understanding the relationship between marketing spend and shopping cart size, eCommerce business founders have a ton on their plates.

And the numbers behind the business are critically important, helping founders avoid cash crunches, unwanted excess inventory, unexpected return ratios and more.

Here are some of the reasons an eCommerce business needs great accounting:

  • The right numbers help founders understand how the business is doing financially
  • Executives make better decisions when they use credible data
  • Projecting working capital changes helps keep the business from going “upside down” - even profitable companies can go bankrupt if the timing of their cash flows are incorrectly managed!
  • Sales taxes and state and federal taxes require correct numbers

When does a funded startup need to start worrying about doing bookkeeping?

If you haven’t been keeping track of your books by the time you raise your first outside money, you need to get your books in order.

We generally recommend that businesses move away from spreadsheets and into an accounting software as soon as possible.

  • Day one you start the company and start a bank account.
  • Connect that bank account to QuickBooks.
  • Start getting the bank feed going into QuickBooks and actually characterize the transactions inside of QuickBooks.

What financial statements do eCommerce companies need?

We recommend that eCommerce companies produce three major financial statements - every month. These are the Income Statement, Cash Flow Statement and Balance Sheet.

And the numbers behind the business are critically important, helping founders avoid cash crunches, unwanted excess inventory, unexpected return ratios and more.

income statement

The income statement shows the company’s:

  • Revenue
  • Cost of Goods Sold (COGS or COS)
  • Gross Profit (Revenue - COGS)
  • Operating Expenses
  • Net Profit
cash flow statement

The cash flow statement shows the company’s:

  • Changes in Inventory
  • Other working capital changes (like changes in payables)
  • Operating income
  • Investments in equipment
  • Capital raises and loan paydowns
  • Net cash flow / change in cash position
balance sheet

The balance sheet shows:

  • Assets
    • Cash
    • Inventory
    • Accounts Receivable
    • Other assets like equipment, buildings, etc.
  • Liabilities
    • Accounts Payable
    • Sales Tax
    • Credit Card liabilities
    • Loans
  • Equity
    • Invested equity
    • Retained earnings

5 things that make eCommerce accounting difficult

  • Sales tax
  • Inventory
  • Start Gross vs net revenue and accounting for returns
  • Start Understanding gross profit - fulfillment, shipping costs; other costs by 3rd party manufactures or fulfillment; tying inventory to sales to understand COGS; customer service costs
  • Start High transaction volume can make doing accounting difficult and complex
  • Start BONUS: Advertising costs and ROI on investments

What to look for in an eCommerce accountant

Startup, early-stage and fast growth eCommerce businesses need more than just a “bot” bookkeeper - they need a real accountant who understands their working capital needs and growth plans. High-growth online retailers and DTC companies often have thousands of transactions. Little errors can grow into big problems if not caught early.

Kruze's accounting and bookkeeping team combines experienced eCommerce accountants with industry leading - and custom built - accounting software. Kruze’s team automates everything that makes sense, but each of our clients gets an experienced, US-based accountant to look over the financials every month and catch any issues as they arise.

We believe that it's our team's job to help save our CEOs time and take care of the basic bookkeeping tasks that other services dump onto their clients. Unlike other startup bookkeeping services, our team deals with the complexities of online business’ financials, and sets you up with clean financials that you can use to make ROI decisions and raise outside venture capital.

Ready to work with experts?

eCommerce Sales Tax

Sales tax has always been a really important revenue stream for states, but eCommerce companies were more or less exempt for the most part. However, a couple of years ago, the Supreme Court made a decision that changed all that - and today, many smaller ecommerce companies will now owe sales tax in multiple jurisdictions.

The big thing is to be aware, and in order to do that D2C companies will want to do what's called a “nexus study” in each state, and typically, all that requires is again that asset, people, property test. But also, you want to break out your revenue by state and basically show your accountant so they can help you decide if your company will owe tax.

At Kruze we do this, at Kruze, we have a dedicated sales tax team that this is just what they do. So they're pretty good at it. And they'll look and see and look at the laws in different states and the thresholds and figure out if you have to file and pay taxes in those states.

Each jurisdiction has different thresholds to determine if any sales tax is owed. Because this can get pretty complicated quickly, we usually recommend choosing a sales tax software to help make the recordkeeping and threshold monitoring easier. Currently, the top sales tax software companies are Avalara and TaxJar.

Another important reason to work with a good ecommerce accounting service provider is that you want someone who knows your business (and taxes) well enough to alert you if the software is producing strange results. For example, Kruze recently noticed one of the software packages was understating what a company's revenue was in a certain state - so the tax was going to be lower. But, because we know the client so well and because we know the books so well, we were actually able to figure that out and correct the amount.

And that's one of those things that if it's incorrect, it can come back and bite you a couple of years down the road because the states will actually audit your company and audit your records. And there are penalties for underpayment that you want to avoid.

Another thing you need to think about if you're selling through Amazon, you're an e-commerce provider and you're doing the fulfillment by Amazon, Amazon actually will give the records of the states showing what they sold and who the vendors were, like your e-commerce company if you're using Amazon fulfillment. Even though the sales tax will be withheld at the checkout level with Amazon. So Amazon is submitting these records and also submitting the sales tax. You as an e-commerce company fulfilling through Amazon should also let the states know about that revenue. You don't actually make the payment because the payment has already been made, but you do need to just let the states know otherwise the states are going to see what Amazon reported and they're going to see what you reported and see they're different numbers and they will actually come after you, do an audit and try to get to the bottom of it. So that's really important. A lot of companies think if they're fulfilling via Amazon, they don't have to submit anything but you actually do. Again, a good accounting partner can help your eCommerce company avoid these issues.

How to Breakout Shopify Fees for Accurate Financials

Shopify is the e-commerce software platform of choice. Everyone's flocking to Shopify to host their store and make all their transactions easy. In the past, you would have to hack together a website to try to sell products or would have to pay a million dollars for a piece of software to do e-commerce. Nowadays, because Shopify has an accessible price point, and it is really easy to use, there are hundreds of thousands of stores on Shopify. Perhaps, your business is one of them.

It makes a difference to know how to treat the information you are getting from Shopify in your accounting system.

And so let's walk through it here.

For the vendor, the person that owns the e-commerce site, Shopify is amazing. However, there are a couple of fees businesses have to pay when they use Shopify:

  1. Platform Fee - It is just the cost of using Shopify.
  2. Shipping Fee - When you are doing e-commerce, this is the cost to ship your goods.

Both of these technically should be in cost of goods sold, but the way it automatically comes into QuickBooks, it is just like one big bundle of fees. You can't split them out natively or easily in QuickBooks. You need some more information.

Luckily, Shopify provides an invoice, so you can see the itemized platform fees and shipping fees in your account for every month. What a good accountant would do, like us at Kruze, is we go into that invoice and we break out the platform fees. That is one line item in the cost of goods sold. It is like the software cost to host your store. And then we break out the second line item, which is shipping fees.

Now, those two different sets of fees are going to go in totally different ways. That is why you want to break them out.

This is important so you will have a better view of your gross margin. You will know if you should someday, start using a new shopping platform because it is cheaper, easier or if the shipping fees are just eating into your profits so badly that you are going to have to find another shipping option.

Having visibility on gross margin is important. And we are very thankful that Shopify does provide that invoice because it allows the Kruze Consulting accountants to deliver accurate financials for the e-commerce customers.

About Us

A CPA Firm Specialized in Startup Accounting & Finance

A CPA Firm Specialized in Startup Accounting & Finance

Startups are our niche, and our passion. Our clients have raised over $3.5 billion in venture capital financing. We are one of only a few outsourced accounting firms that specialize in funded early-stage companies - we only offer financial and tax services to fast growing startups in the Seed, Series A, Series B and Series C stages.

The Right Accounting Partner for Your Startup’s Next Round

The Right Accounting Partner for Your Startup’s Next Round

We know how to de-risk your startup’s next venture capital round. Our team makes sure you are ready to fly through your next VC’s accounting, HR and tax due diligence. And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising.

A Leader in Cloud Accounting Software

A Leader in Cloud Accounting Software

Our practice is built on best of breed cloud accounting software like QuickBooks, Xero, Netsuite, Gusto, Zenefits, Expensify, Avalara, Brex iand Bill.com. Technology makes us more efficient, saving our clients money and letting us offer higher value services like FP&A modeling, 409A valuation and venture debt consulting. Startups deserve to work with CPAs using modern software.

Trusted by Top Venture Investors

Trusted by Top Venture Investors

Top angel investors and VCs refer Kruze because they trust us to give the right advice. Our clients are portfolio companies of top technology and Silicon Valley investors, including Y-Combinator, Kleiner, Sequoia, Khsola, Launch, Techstars and more. With us, your books and taxes are in order when it’s time to raise another round of venture financing.

What types of startups does Kruze Consulting usually work with?

What types of startups does Kruze Consulting usually work with?

Kruze Consulting works with a variety of funded Delaware C-Corps, but the majority of our companies have secured Seed, Series A, Series B and Series C. We look to partner with our clients, going beyond the typical outsourced accounting relationship and seeking to provide a higher level advisory role. We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.

Accounting, Finance, Taxes, & Payroll all in one solution

Accounting, Finance, Taxes, & Payroll all in one solution

Startup CFO services, startup accounting and bookkeeping services, startup annual taxes, expense reports, payroll, benefits: we've got you covered. Our software provides custom tailored dashboards that can be provided weekly or monthly, depending on your preference and plan. Founders are often so busy building their company that they don’t have time to take care of their finances. Traditionally, these companies have had to work with a basket of people to get their work done, including bookkeepers, accountants, AP clerks, CFOs, consultants, and tax accountants. At Kruze Consulting, our founders have one point person, saving time and money.

Client testimonials

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We're huge fans of Vanessa and the folks at Kruze Consulting. They set up our books, finances, and other operations, and are constantly organized and on top of things. As a startup, you have to focus on your product and customers, and Kruze takes care of everything else (which is a massive sigh of relief). I highly highly highly recommend working with Vanessa and her team.

Vivek Sodera

Vivek Sodera

Co-Founder @ Superhuman

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As a startup, moving quickly is a top priority for us and we just needed to get our tax return done. After we uploaded our docs, we got our tax return in 3 days! E-filing was confirmed by Day 4. Super responsive and helpful!

Casey McKerchie

Casey McKerchie

VP, Operations of Calm.com

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Avochato has been growing rapidly in the past year – in fact, too quickly for us to keep up with books, taxes, and budgeting for growth. Partnering with Kruze Consulting has been fantastic to manage, track, and analyze our finances while we continue focusing on building our customer base. Kruze’s team knows what startups need.

Alex De Simone

Alex De Simone

CEO @ Avochato

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I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup’s books and finances. If you are going to raise venture capital, you need experts like Kruze.

Chris Mansi

Chris Mansi

CEO @ Viz.ai

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Kruze Consulting is the perfect Accounting, Finance and Tax partner for Los Angeles Startups. Kruze delivers exceptional monthly reporting and financial projections. When we need help with benefits or payroll, Kruze solves our problems. Kruze does our taxes for a fraction of what previous accountants have charged. Thank you Kruze for being a great partner.

Brett O'Brien

Brett O'Brien

CEO @ FLYR

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Being a repeat tech entrepreneur, I know how challenging it is to find the ideal CFO - not only is it often expensive to find the right one, but CFOs who combine expertise with scrappiness, market vision and perspective with detail orientation and 'roll up your sleeves' execution is near impossible for an early stage company. So I've been thrilled to work with Kruze Consulting, who not only provide all the ideal characteristics of a top-tier tech CFO, but also live and breathe entrepreneurship themselves. I've known Scott and Vanessa for many years and their deep personal integrity and strong reputation in the industry and made it an easy decision to work with them again.

Tina Fitch

Tina Fitch

CEO @ HobNob

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NIH, NSF, and SBIR grant compliance can add a lot of overhead for a start-up. The Kruze team makes it easy, so we can spend our time growing the business instead of shoveling paperwork.

Charlie Silver

Charlie Silver

CEO @ Mission Bio

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As a startup, it’s incredibly important to keep track of where our money is coming from and where it’s being spent. Kruze Consulting really helps keep our books and taxes in order so that we can focus on the core business. Extremely responsive and very professional, the accountants at Kruze Consulting are a pleasure to work with. We’d highly recommend their services.

Peter Lai

Peter Lai

CEO @ Emburse

Consulting, Tax and Valuation Prices

Competitively priced for high-growth companies

See our monthly pricing plans

Financial Consulting

Staff Accountant $85
Senior Staff Accountant $110
Controller $140
Financial Modeling $300
Venture Debt $300
CFO $300
Tax Advisory $395

Startup 409A Valuation

Seed $2,000
Seed A $2,500
Seed B $3,000
Seed C $3,500

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