E-commerce accounting can be a complicated task, but it’s essential to any business’s success. It includes managing multiple financial tasks such as tracking income and expenses, preparing financial statements, invoicing customers, and payment processing. While there are many different steps involved in eCommerce accounting, here are nine that are essential for businesses to follow:

1. Identify the Different Types of Transactions: Every purchase or sale needs to be identified in order to accurately track income and expenses. Businesses must also categorize their transactions in order to properly reconcile accounts at the end of each period.
2. Set up Accounting Software: Investing in an accounting software solution makes handling finances easier and more efficient. Make sure your system is user-friendly and has features that make it easy to record transactions and generate reports.
3. Track Income & Expenses Regularly: Keeping track of all financial activity is the most important part of accounting for eCommerce businesses. All income received must be recorded regularly so that it is reported correctly on tax returns and other financial documents; similarly, all expenses should be tracked for both cost savings opportunities as well as filing deductions when applicable.
4. Monitor Your Cash Flow: Knowing how much money you have coming in and going out is key to staying on top of payments owed (and collecting money due). Monitoring cash flow also helps spot trends within your business that could help increase profits over time.
5. Reconcile Accounts Periodically: Recalculating account balances throughout the year helps identify potential discrepancies early on before they become major issues down the line (such as unpaid invoices or incorrect tax filings).
6. Prepare Financial Statements & Reports: This step involves summarizing data from prior periods into easy-to-read charts and graphs that provide an overview of overall financial performance in an organized way – great for reviewing trends with stakeholders or providing information to lenders or investors if needed.
7. File Taxes Accurately & On Time: Tax laws change often so it’s essential to stay up-to-date with current regulations when submitting taxes each year; make sure all necessary forms are completed correctly as well as submitted by the due date in order to avoid unwanted penalties or delays with refunds due back from previous quarters/years being filed simultaneously..
8. Generate Invoices: Invoicing customers ensures timely payment while also keeping track of outstanding balances; automated solutions like Quickbooks Online make this process simple by generating invoices directly from sales records imported into the system
9. Review Performance Metrics Regularly: Lastly, but certainly not least importantly – review performance metrics at least once a quarter (ideally more often than that) which helps identify areas where you may need additional resources or strategies for improvement going forward! Additionally, you can use this data to compare results against competitors or industry averages in order to better understand your place within the market as a whole.