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Bringing Financial Clarity to a Fast-Growing Online Retail Brand

Industry: E-commerce & Retail

Background

A fast-growing e-commerce company selling eco-friendly home products had built a loyal customer base through its online store, third-party marketplaces like Amazon, and international shipping channels. To keep up, the team expanded operations, hired more staff, and added tools for marketing, inventory, and fulfillment. On the surface, everything was going well. But under the hood, the financial systems were lagging behind the pace of growth.

The accounting setup that worked well initially was now inadequate. Reports were incomplete, cost tracking across channels was poor, and revenue and expenses for each product were not clearly understood. Facing tighter cash flow and pressure from suppliers and investors, the company realized it needed a smarter financial setup to maintain control and continue growing.

The Challenge

Disconnected Systems

The business used five different tools for inventory, order processing, shipping, accounting, and customer service. None of them talked to each other, leading to duplicate data entry, inconsistent figures, and month-end financials that were always behind schedule or missing key numbers.

Overstock and Stockouts

Without a working forecasting model, inventory decisions were often based on instinct. Some SKUs were overstocked for months, while bestsellers ran out repeatedly. The lack of balance led to missed revenue, excess storage fees, and fulfillment costs due to last-minute shipping workarounds.

Untracked Marketing Spend

The brand had grown thanks to paid ads, influencer deals, and seasonal campaigns, but nobody had a clear sense of how much was being spent or which channels were profitable. With no budget in place, spending often spiked without notice, affecting cash flow and returns.

Inaccurate Financial Reporting

Their books were cash-based while operations ran on accrual terms, creating mismatches between revenue and actual profitability. Refunds, returns, and chargebacks weren’t properly recorded in monthly reports. Investors had asked for accurate P&Ls, but the current reports couldn’t be trusted.

Tax Exposure

Operating in four states and shipping to all 50 meant they were on the hook for various sales taxes. The in-house team hadn’t filed in every required jurisdiction or registered in several new states where nexus had been triggered due to volume.

Our Approach

Big 4 Accountants stepped in with a full-scope cleanup and control plan. We began by consolidating their reporting tools and building a centralized dashboard that synced with inventory, payment processors, and ad platforms. After standardizing their chart of accounts and correcting months of mismatched entries, we transitioned the business to an accrual-based reporting model.

We mapped sales data across the platform (Shopify) to streamline revenue tracking and built a margin analysis by SKU to identify product-level profitability. Tax compliance was reassessed from scratch, and we registered them in seven additional states while setting up automated sales tax filings. A budgeting system was introduced, starting with marketing and gradually covering all expense areas.

The Results

Cleaner Numbers, Better Decisions

With a working accrual setup and reconciled records, the company receives a reliable monthly P&L and cash flow statement. Reports show revenue by channel, costs per category, and ad spend performance. Leadership can now compare profits by product line and allocate spending accordingly.

Inventory Efficiency

The new forecasting system, built using 12-month sales history and lead time data, helped reduce overstock by 28% and improved order fill rates by 33%. They’re now reordering based on real trends rather than guesswork.

Smarter Marketing Spend

Paid ad reports were integrated into their financial dashboard, allowing them to see real-time return on ad spend. Within 3 months, they reallocated $12,000/month away from underperforming channels and invested in higher-performing ones, increasing average monthly revenue by 17%.

Accurate Multi-State Tax Compliance

We helped them avoid $42,000 in potential back taxes and penalties by identifying missing filings and registering in the necessary jurisdictions. Sales tax is now automatically calculated and remitted across all platforms.

Prepared for Growth

With a new budgeting system and fully reconciled books, the company is in a position to pitch investors with confidence. A recent seed funding round was closed faster, backed by clean financials and a clear growth model.

In Nutshell

This wasn’t just a matter of cleaning up reports, it was about giving a fast-growing business the foundation to grow without financial guesswork. With hands-on support from experts who understand the realities of e-commerce, Big 4 Accountants provided more than accounting, we delivered visibility, accountability, and smarter growth planning. Whether you're scaling for the first time or gearing up for your next round, this partnership helps you stay sharp and steady.