Case Study: Financial Optimization for a US-Based E-commerce Company

Client name: US-Based Company 
Industry: E-Commerce

Executive Summary

A mid-sized e-commerce company based in Texas, USA, turned to Remote Financial Services (RFS) for expert accounting support. The company, which sells consumer electronics through its online store and marketplaces like Amazon and eBay, needed help managing inventory-related costs, multi-channel revenue recognition, and financial forecasting.

The Challenge

The company encountered several financial hurdles:
• Complex Inventory Management: Inaccurate tracking of Cost of Goods Sold (COGS) due to high SKU turnover.
• Multi-Platform Sales Reporting: Difficulty consolidating data from Shopify, Amazon, and eBay.
• Sales Tax Compliance: Managing varying tax rates across different US states.
• Forecasting Limitations: Lack of reliable forecasting tools to plan for seasonal spikes and restocking.

The Solution

RFS implemented a customized financial management system to enhance efficiency and ensure compliance:

  1. Inventory Cost Tracking: As part of our bookkeeping services, RFS implemented FIFO-based inventory accounting in QuickBooks Online to ensure precise cost of goods sold (COGS) tracking. This setup was integrated with the company’s inventory management system, enabling real-time updates of stock levels, accurate inventory valuation, and consistent financial records across all sales channels.
  2. Sales Channel Integration: RFS managed the bookkeeping across multiple platforms by consolidating financial data from Amazon, eBay, and Shopify into Xero. This eliminated manual reconciliations, ensured consistent revenue recognition, and supported a unified reporting structure that improved the accuracy and timeliness of monthly closes.
  3. Sales Tax Compliance & Filing: We handled the company’s multistate sales tax compliance by implementing automated tracking and filing workflows tailored to each state’s tax laws. RFS ensured timely filings, accurate tax liability calculations, and full documentation, minimizing audit risks and keeping the company in good standing with tax authorities.
  4. Cash Flow Forecasting: As part of our accounting support, RFS developed a rolling cash flow forecasting model based on historical sales, restocking cycles, and monthly burn rate. This empowered leadership to make proactive financial decisions, maintain adequate liquidity, and confidently manage seasonal cash demands.

The Results

The implementation of streamlined accounting solutions resulted in measurable improvements:

  • Accurate Inventory Valuation: Reduced cost misallocations, improving gross profit margin tracking by 15%.
  • Time-Saving Automations: Decreased monthly close time by 40% through system integrations.
  • Full Tax Compliance: Achieved 100% sales tax filing accuracy across all operating states.
  • Scalable Forecasting: Enabled data-driven restocking and promotional planning.

Conclusion

RFS empowered the e-commerce company to transition from reactive to proactive financial management, equipping leadership with real-time insights and compliance confidence for growth.