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🗣In this episode of the Dropship Unlocked Podcast, hosts Lewis Smith and James Eardley welcome Daniel Little, Co-Founder & CEO of Link My Books, host of The eCommerce Profitability Show, and a former 7-figure Amazon seller. 

Daniel shares his extensive knowledge on bookkeeping, accounting, and tax for UK ecommerce businesses.

👉 Prefer to watch this on Youtube? Check it out here  ➡️ https://youtu.be/O_xGW2CiL5w

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Topics Discussed:

★ Financial Literacy Terms for Ecommerce Business Owners: Explanation of gross profit, net profit, and their importance. Definition and significance of EBITDA and cash flow.

★ Understanding P&L in Business: Overview of a Profit and Loss (P&L) statement and its components. How to interpret and use a P&L statement for informed decision-making.

★ The E-commerce Financial Model: Differences in revenue recognition and cost structures. Importance of tracking inventory and Cost of Goods Sold (COGS). 

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Links and Resources Mentioned:

Pick up a copy of Lewis’ book: https://htabook.com 

Get Shopify for £1 a month for 3 months: https://www.dropshipunlocked.com/shopify 

Get a free trial with a professional phone line: https://www.dropshipunlocked.com/circle 

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Key Takeaways:

★ P&L Statements: Regular review of P&L statements helps in making informed business decisions.

Avoid common mistakes like misinterpreting revenue and profit margins.

★ Chart of Accounts: A tailored Chart of Accounts specific to ecommerce is vital for detailed financial tracking and analysis.

★ Financial Model Differences: Recognize the unique financial model of dropshipping and its impact on cash flow and profitability.

★ Avoiding Common Mistakes: Regular financial reviews and updates, effective cash flow management, and integration of financial data are key to avoiding common pitfalls.

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★★★Dropship Unlocked - Lewis Smith★★★

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