Feb 19, 2024
In this episode of "What's Working in E-commerce", Eagan Heath talks with Wayne Richard, CEO of Bean Ninjas, about the accounting challenges faced by ecommerce businesses.
Richard emphasizes the importance of understanding cash flow, profitability, and financial literacy. He introduces the concept of accrual accounting and a tool called the cash conversion cycle to help sellers analyze their cash flow.
Richard also presents the Margin Calculator Plus, a tool for analyzing expenses and identifying cost-saving opportunities.
The conversation concludes with Richard explaining how Bean Ninjas can assist ecommerce businesses in achieving their financial goals.
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You can find Wayne Richard from Bean Ninjas here:
https://www.linkedin.com/in/waynedrichard/
Timestamps:
00:00 - Wayne Richard on ecommerce profitability and calculation.
01:38 - Eagan Heath asks about accounting challenges in ecommerce.
04:55 - Wayne Richard on financial reports and literacy importance.
14:48 - Understanding profit and expense identification with spreadsheets.
15:56 - Efficiency and cost savings in ecommerce businesses.
17:31 - Impact of changing marketing efficiency ratio on profitability.
25:18 - Break-even units and forecasted units for informed decisions.
26:20 - Unit economics for identifying areas needing attention.
29:50 - Baseline understanding and challenging assumptions for measurable changes.