In eCommerce, we all need much more than a bookkeeper to make sound financial decisions. We need instant information on cash flow, inventory, projections, and other KPIs. It’s not easy, but Lio Pinchevski, CEO of Finaloop, has a solution. Izach Porter hosts this episode of Deal Closers, brought to you by WebsiteClosers.com, and is produced by Earfluence.
Managing your finances in real-time can unlock new opportunities. Finaloop’s CEO, Lio Pinchevski, experienced this firsthand as a DTC brand owner. He found that traditional keeping and accounting systems couldn’t keep up with the fast pace of eCommerce. After struggling to get accurate, reconciled books from various bookkeepers, he realized most accounting software wasn’t designed for eCommerce businesses.
This led to the creation of Finaloop, a platform that automates real-time accounting and financial management for eCommerce sellers. By eliminating the need for multiple software patches, Finaloop ensures that eCommerce businesses have immediate access to correct financial data, allowing owners to stay on top of their finances. From tracking cash flow to improving cash flow forecasting, the platform empowers business owners to make informed financial decisions quickly.
If you’re a small business owner looking to improve cash flow and stay on top of your finances, adopting automated accounting solutions like Finaloop can simplify financial management and help you scale. As Lio put it, “Finaloop creates perfect books that are always correct and available in real-time.” This gives you the confidence to make decisions that will boost your business’s financial health and set you up for long-term success.
When it comes to managing eCommerce finances, real-time tracking is essential. As Izach Porter from Website Closers highlighted, many eCommerce sellers struggle to provide accurate profit and loss statements and balance sheets, especially when they don’t have a bookkeeper or specialized accounting software. This is where Finaloop comes in, providing an automated solution that delivers reconciled financial statements within hours, not months.
The platform integrates with key eCommerce data sources like Amazon, Shopify, bank accounts, and credit cards to create accurate, real-time financial records. This allows sellers to stay on top of their cash flow, manage their business financials effectively, and prepare for big decisions like a business sale. What sets Finaloop apart is its ability to not only pull data from multiple sources but also reconcile that information before it hits the ledger—meaning everything is perfectly aligned and ready to use.
For those who sign up with Finaloop, it’s not just about real-time profit and loss. It offers balance sheets, cash flow statements, and detailed breakdowns of financial data, all tailored specifically for eCommerce businesses. Whether you’re looking to track your cash flow management daily, weekly, or monthly, Finaloop offers comprehensive insights that can help you make smarter financial decisions.
If you’re a small business owner wondering how to stay on top of your finances, Finaloop’s automated accounting software could be the game-changer you need. In addition to providing two years of reconciled financial data within 24 hours, the platform ensures you never miss a beat with real-time monitoring of every transaction so you can focus on growing your business.
Monitoring cash conversion cycles is essential, particularly for businesses that make large inventory purchases. A sudden dip in cash flow as a result of inventory procurement can be anticipated if businesses track these cycles. By understanding when negative cash flow occurs, businesses can better prepare financially for future expenses. Finaloop has introduced features such as real-time inventory tracking, which has been a game-changer for eCommerce brands, particularly those using Shopify and Amazon.
One of the most difficult aspects of managing an eCommerce business is understanding profitability at the SKU level. Many brands are unaware that certain products, despite high sales, might be loss-making. Without granular tracking of profitability, businesses can unknowingly operate at a loss. Real-time SKU-level profitability tracking allows brands to make informed decisions on which products to focus on and which to phase out. Finaloop’s introduction of real-time COGS tracking has helped many eCommerce brands achieve this level of detailed financial insight.
A key strength of Finaloop is its ability to track the most important KPIs for eCommerce brands. These include:
These KPIs are essential not just for operational efficiency but also for attracting investors and potential buyers who are more likely to focus on net revenue rather than gross sales figures.
For those wondering whether they still need QuickBooks or a CPA after switching to Finaloop, the answer is nuanced. Finaloop replaces many of the tedious bookkeeping tasks, significantly reducing the need for human bookkeepers. However, some businesses may still choose to maintain QuickBooks for tax purposes. Finaloop integrates smoothly with QuickBooks, making it possible for businesses to enjoy the best of both worlds.
One of the common issues seen in eCommerce bookkeeping is the failure to take full advantage of tax deductions. This can result in lost opportunities for savings. For instance, interest from eCommerce loans, such as merchant cash advances, often goes unrecorded as a deductible expense. Home office expenses are another overlooked area that can lead to significant deductions without any personal tax pickup. By working with Finaloop, eCommerce brands can better manage their finances and ensure they’re not leaving money on the table when it comes to taxes.
Finaloop offers a transformative approach to eCommerce bookkeeping, allowing brands to track critical financial data in real time, reduce bookkeeping costs, and better manage their profitability. With integration options for QuickBooks and a 40-day free trial, businesses can easily compare their current systems to Finaloop and see the benefits firsthand. Whether it’s accurate cash flow management, detailed SKU-level profitability, or tax deduction optimization, Finaloop helps brands scale efficiently and effectively.
Thanks, everyone, for listening to this episode of The Deal Closers Podcast, brought to you by WebsiteClosers.com. If you like the show, be sure to rate us, write a review, press the follow button, and share it with your network. Of course, if you’re looking for help selling your eCommerce business, be sure to visit websiteclosers.com. This episode was edited and produced by Earfluence. I’m Izach Porter. Follow me on LinkedIn, and we’ll see you next time on The Deal Closers Podcast.