They say necessity is the mother of invention. The inception story of MarginDriver further corroborates this statement. In 2011, three entrepreneurs—Patrick McGreevy, Ben Smith, and Eric Schroeder—had just started their family-owned multi-channel ecommerce business. Since it was a startup with no dedicated teams, the co-founders had to assume multiple roles—including making sense out of the reams of financial data they received from multiple ecommerce platforms, marketplaces, and payment solutions—which took their focus away from the more crucial mission of executive decision-making.
After using the popular standardized accounting systems, the young company decided it needed an ecommerce-specific solution to not only process all of this complex financial data but also as a means to transform it into a meaningful business intelligence that could guide their strategic decision-making in real time. Not finding any existing software with the necessary integrations and functionality on both fronts, , the co-founders decided to create their own solution with the help of John McGreevy, a former CPA with extensive experience in private equity startups and related financial modeling. The new solution performed beyond expectations. Inspired by this success, they named it MarginDriver and made it available to other growing ecommerce businesses in need of an automated subsidiary accounting system designed to serve the unique needs of ecommerce sellers. Today, equipped with MarginDriver, small and large ecommerce businesses are getting their financials in order and driving up their profit margins. MarginDriver does the heavy lifting of integrating with leading ecommerce solutions, generating meaningful business intelligence and gross profit financial statements, and reconciling such against third party payment accounts. The resulting summarized monthly gross profit journal entries are sent off to leading general ledger accounting solutions with the click of a button. Whereas most competing software only performs a fraction of one of these functions, MarginDriver is an end-to-end financial solution for ecommerce businesses looking to grow in today’s competitive market.
The profitability analytics enable clients to drill down to the exact factors that are impacting the bottom line of each of each order, product, and individual sales channel. This makes it easy for clients to locate any orders that aren’t reaching their minimum margins and discontinue them, while increasing their focus on those that contribute more to the bottom line.
“Making use of the analytics tools, the clients can also track their crucial KPI trends over broader time frames and product volume,” adds John McGreevy, now a partner at MarginDriver.
Interestingly, all these insights are presented in a way that puts profits and margins front and center. The previous day’s order volume, revenue, gross profit and average margin are prominently displayed atop the Dashboard and compared to previous the date’s data so every operator knows the company’s current trajectory. The same metrics can even be tracked in real-time using the ‘So Far Today’ tab. “Even beyond the real-time analytics, MarginDriver automatically converts currency rates, collates accounting information into monthly accounting reports, reconciles the accounts receivables, and posts it to the general ledger,” says Patrick McGreevy, president of MarginDriver.
Such competencies are empowering ecommerce businesses to tighten any accounting loose ends and reenergize their growth. Patrick sheds light on a recent instance, where an ecommerce seller sought to increase their gross profit per order. After integrating the MarginDriver software with their ecommerce sales channels, it did not take long for the company to recognize that their order performance was uneven. Some orders made good money while others were being fulfilled at a loss. MarginDriver revealed the low-margin products, including whether they were properly priced or had high shipping costs. Based on these actionable insights, the client quickly adjusted their prices and eliminated unprofitable products, facilitating a 35 percent increase in profits while fulfilling fewer orders. More money, less work.
Margindriver Is A Best Understood As A Subsidiary Ecommerce Accounting System Fronted By A Real-Time Profitability Dashboard And A Suite Of Analytics Tools. The One-Size-Fits-All Approach Of Most General Ledger Accounting Solutions Just Doesn’t Cut It For The Ecommerce Business That Really Needs To Be Financially Savvy. Unlike Our Competitors, We’re Not Just Pushing Data From One Place To Another. We’re Delivering Value On A Whole Different Level
To further increase such benefits for clients, MarginDriver is already working on adding new functionalities to the software suite and further streamlining the accounting workflows. The next step for the company is to conquer the ecommerce accounting niche, and judging by its initial successes, there is no doubt that MarginDriver will end up becoming a popular ecommerce accounting platform for businesses of all sizes worldwide.