Client Type: E-commerce Seller (Multi-Marketplace)
Jurisdiction: United States
Period Covered: 2023–2024
Consultant: Prosperlytics Consultants
Client Background
A fast-growing e-commerce business selling across Amazon US, Shopify, and wholesale channels was struggling with strategic decision-making due to inconsistent and incomplete financial statements. Reports prepared by their previous bookkeeper lacked clarity, leading to confusion around profitability and cost allocation.
Engagement with Prosperlytics
The client approached Prosperlytics for comprehensive bookkeeping and financial reporting services. They needed reliable and investor-ready financial statements that could support key decisions such as expansion into new marketplaces, pricing adjustments, and capital allocation.
Our Approach & Solutio
Prosperlytics restructured the client’s accounting framework and implemented monthly accrual-based financial statements with detailed reporting across sales channels.
Our process included:
- Rebuilding the chart of accounts to segregate revenue and expenses by channel (Amazon, Shopify, wholesale).
- Conducting detailed COGS calculations with FIFO landed cost methodology.
- Reconciling all marketplace reports with banking transactions.
- Preparing customized dashboards to highlight channel-wise profitability, expense trends, and working capital cycles.
This enabled management to easily track revenue, costs, margins, and operational KPIs.
Result
- Delivered accurate and actionable financial statements every month.
- Helped management identify underperforming channels and optimize ad spending.
- Enabled strategic decisions such as expanding into new marketplaces and renegotiating supplier contracts.
- Built investor-ready financials that supported fundraising conversations.
Conclusion:
By shifting to accurate, accrual-based reporting, Prosperlytics empowered the client with clear financial insights. This transformed their decision-making, ensuring they could grow strategically while staying profitable.