What Revenue to Hire an eCommerce Accountant (Or Keep DIY)

Remember your first cavity? That moment at the dentist when they found it, and you thought "but I brush my teeth every day!"

Turns out, regular brushing isn't the whole story. And neither is DIY bookkeeping.

Here's the thing - you're probably doing fine managing your own books right now. 

Your business isn't going to implode because you're tracking expenses in a spreadsheet. Just like your teeth won't fall out if you skip one dentist appointment.

But beneath the surface...

Things build up. Slowly. Quietly. Until one day you're staring at:

• A mountain of unreconciled transactions
• Profit margins that don't make sense
• Cash flow that keeps you up at night
• Tax season turning into your personal horror movie

It's like that moment when you run your tongue over your teeth and think "something's not quite right here..."

The tricky part? 

By the time most founders feel the pain, they're already months (or years) past the point where they should have brought in professional help.

The Three Layers of Financial Health

Before we dive in, let's get something straight - ecommerce accounting isn't just one thing. 

It's like dental care: there's what you do at home, what the hygienist does, and what the specialized dentist handles.

In ecommerce, it breaks down into three distinct layers:

1. Basic Bookkeeping: Your daily maintenance. Like brushing your teeth, it's the foundation everything else builds on.
2. Financial Reporting: Your regular checkups. This is where you actually see what's happening beneath the surface.
3. Strategic Planning: The specialized care. When you need more than just maintenance - you need someone who can spot problems before they happen and guide your growth.

Each layer builds on the one before it. 

You can't have meaningful reporting without solid bookkeeping, just like you can't get a good cleaning if you never brush.

Let's break down each layer, starting with the basics - and more importantly, figure out when you need to level up from DIY to professional help.

Layer 1: The Daily Brush (Basic Bookkeeping)

In the early days, you probably know every transaction by heart. 

You're the one making the purchases, paying the bills, and watching those Shopify sales roll in. Basic bookkeeping feels manageable - maybe even easy.

Here's what this layer actually involves:

• Recording every transaction (not just checking your bank balance)
• Categorizing expenses (no, "misc" isn't a proper category)
• Creating purchase orders for inventory
• Tracking bills and invoices
• Filing documentation (because future-you will need it)

Think of it like flossing - you know you should do it properly, but sometimes you just... don't.

When DIY Starts to Crack

You might be reaching your DIY limit when:

• Your "quick" monthly reconciliation takes three weekends
• You've got more uncategorized transactions than categorized ones
• Your tax accountant keeps sending "urgent" emails
• You can't immediately tell if that big supplier invoice was paid

The Reality Check

Here's where most founders get it wrong: They wait until something breaks.

But just like oral hygiene, by the time something hurts, you're already in trouble. The smart move is to level up before you hit crisis mode.

The sweet spot for getting help with bookkeeping? It's usually around:

• 50-100K monthly revenue
• 100+ monthly transactions
• When you start losing sleep over tax season
• When you catch yourself saying "I'll sort it out later" more than once a week

Layer 2: The Regular Checkup (Financial Reporting)

This is where you start getting real value from all that bookkeeping groundwork. 

Think of reporting as your financial X-ray - it shows what's happening beneath the surface.

At its core, you're looking at three main financial statements:

• Profit and loss
• Balance sheet
• Cash flow statement

But here's where it gets juicy - there's so much more you can (and should) track:

• Contribution margins between DTC and Amazon
• Gross margin by product category
• Inventory levels across different locations
• Marketing attribution across different channels
• Real COGS breakdown

Just like you wouldn't pump money into Facebook ads without checking ROAS, you can't make solid business decisions without understanding your financial performance.

When Basic Reports Aren't Enough

In the early days, you can probably keep most numbers in your head. When you're doing $10K a month and handling everything yourself, you know the score.

• But then things start to blur:
• Transaction volume increases
• Multiple sales channels kick in
• SKU count grows
• Inventory gets more complex

Suddenly, those basic reports from your accounting software aren't cutting it anymore. 

They're too generic, too limited, and not giving you the insights you need to make decisions.

The truth is, good reporting isn't just about looking at what happened - it's about understanding why it happened and what to do next.

Layer 3: The Long Game (Strategic Planning)

This is where things get serious. We're not just looking in the rearview mirror anymore - we're planning the road ahead.

Think of it as the difference between asking "How much did we make last month?" and "How much cash do we need for next year's expansion?"

What Strategic Financial Planning Really Means

At this level, your financial data starts driving your entire business strategy. 

Good forecasting isn't just about extrapolating historical data - it's about blending your numbers with market knowledge and growth plans.

The magic happens when financial insights start informing every major business decision - from new product launches to hiring plans.

You'll be tackling questions like:

• When should we launch that new product line?
• Can we afford to expand into wholesale?
• Should we take on debt or raise equity?
• How much inventory do we need six months from now?

Watch me break down how to create your first basic ecommerce forecast - even if you've never looked at a spreadsheet before.

When Do You Need Each Layer?

As an accountant, I'd love to tell you that you need all three layers from day one - but that's not practical. It's about balancing the benefit against the cost of implementation.

Do you really need bookkeeping?

From day one, you need some form of bookkeeping - even if it's just for tax purposes. 

But that doesn't mean hiring someone immediately.

In the early days, when you have more time than cash, doing it yourself makes sense. 

Transaction volume is low, everything's fresh in your mind, and basic bookkeeping shouldn't eat up too much time.

But there's a tipping point where every hour spent categorizing transactions is an hour not spent growing your brand.

Do you really need reporting?

You might not need sophisticated reporting on day one. 

When you're doing everything yourself and transaction volume is low, you probably have a decent mental picture of your performance.

But as complexity grows, that mental math stops working. 

Basic Shopify reports and accounting software dashboards won't tell the whole story anymore. 

You need deeper insights to make informed decisions.

Do you really need strategic planning?

This is usually the last piece to implement, but timing depends entirely on your growth ambitions. 

Growing steadily? Historical data might be enough. 

Planning to scale aggressively? You'll need this layer sooner rather than later.

When is the right time to hire an accountant?

So how do you know when to pull the trigger? It comes down to three key factors:

1. Complexity

Think about your business structure. Are you:

• Selling across multiple channels?
• Managing various SKUs and inventory locations?
• Handling your own manufacturing?
• Dealing with wholesale accounts and receivables?

The more complex your operation, the sooner you need professional help with bookkeeping and reporting. 

Because let's face it - juggling all these pieces with a DIY system is asking for trouble.

2. Speed of Growth

This is huge. If you're scaling fast, you need information fast. 

You can't be looking at data from three months ago when you're doubling revenue every quarter.

Fast growth usually means:

• Tighter margins
• More careful cash flow management
• Quick decision-making needs
• Future-focused planning

When you're growing rapidly, you need to see problems coming before they hit you. 

Rear-view mirror accounting won't cut it.

3. Size

If you want the simplest rule of thumb - hitting 50-100K in monthly revenue is usually when you should consider professional help. 

But here's the thing: it's not just about revenue numbers.

It all comes down to what you're actually going to do with the data. 

Having perfect books and sophisticated forecasting models means nothing if you never use them to make decisions.

Think about it like working out. 

You can plan the perfect routine, schedule every set, calculate your macros - but if you never hit the gym, what's the point?

If you're never going to look at your financial performance, then sure, stick with basic bookkeeping. 

But if you're serious about scaling? You need to understand your numbers.

Any serious entrepreneur knows this truth: you can't make smart scaling decisions without a clear picture of your financial health. 

DIY or hire an eCommerce accountant? A Tale of Two Sellers

Let's put everything we've discussed into perspective with two real-world scenarios. 

Sometimes the best way to understand when you need professional help is to see it in action.

We'll look at two different sellers: one who can safely stick to DIY, and another who's approaching (but might not realize) the tipping point where professional help becomes crucial.

The Etsy Artist: Clear and Simple

Meet Sarah. She sells handmade jewelry on Etsy:

• $10K monthly revenue
• 3-4 core products
• Makes everything herself
• One sales channel
• Direct to customer

Sarah's financial world is straightforward:

She knows her costs, her margins, and her cash flow. A basic spreadsheet and some disciplined bookkeeping habits are all she needs right now.

The Growing Brand: Hidden Complexities

Meet Mike. He started a beverage company on Shopify:

• $80K monthly revenue
• Growing fast
• Planning Amazon expansion
• Eyeing wholesale opportunities

Mike thinks he's got it under control because:

"I can see all my sales in Shopify, and I track expenses in a spreadsheet. What's the big deal?"

But here's what's lurking around the corner:

• Different margin structures for each channel
• Inventory forecasting across platforms
• Payment terms with wholesale partners
• Channel-specific pricing strategies
• Cash flow implications of expansion
• Working capital needs for growth

Mike doesn't know what he doesn't know. 

He's like someone planning to run a marathon who's only ever jogged around the block. The skills that got him to $80K won't get him to $800K.

The complexity isn't visible yet, but it's coming. And by the time he feels the pain points, he'll be months behind where he should be financially.

What's Your Next Move?

If you're reading this and thinking:

• "My books are a mess"
• "I have no idea what my true margins are"
• "Tax season keeps me up at night"
• "I need help scaling this thing"

Then it might be time to talk to an ecommerce accountant. 

Someone who speaks your language and understands the unique challenges of running an ecommerce brand.

But even if you're not ready for professional help yet, start paying attention to your financial data now. 

Because by the time you feel the pain, you're usually months past when you should have acted.

Remember - just like that cavity, financial problems are always easier (and cheaper) to prevent than to fix.

If you're still looking at your financial information yourself, you might enjoy this video on how to read an ecommerce balance sheet.

‍