Website builders like Squarespace make it easy to launch a beautiful online store, but behind the scenes, it’s the financial setup that determines whether you’re just making sales or actually building a profitable business.
At JBS, we specialize in helping small businesses understand the numbers behind their store, so you’re not just winging it when it comes to taxes, pricing, or profit margins. Here are a few essential things every Squarespace store owner should be thinking about from a financial perspective.
TL;DR: Squarespace makes it easy to launch a store, but to stay profitable, you need to understand the financial side – like shipping costs, sales tax obligations, and your true profit margins.
Are You Charging Enough for Shipping?
Undercharging Adds Up Fast
If you’re offering flat-rate shipping without knowing your actual costs, you might be losing money on every order. Even carrier-calculated rates can eat into your profit if you’re not factoring in packaging costs, labor, or fulfillment fees.
What to Do
- Review average shipping costs across product types
- Build those costs into your product pricing or charge appropriately at checkout
- Don’t forget to account for packaging, labels, and handling time
Financial Tip: Shipping is not just an operational task; it directly affects your gross profit margin.
Sales Tax: Know Where You Owe
Squarespace Doesn’t Handle Everything
Squarespace can automatically calculate U.S. sales tax on eligible plans, but it doesn’t file those taxes for you or alert you to where you’ve triggered tax obligations.
If you sell across state lines, you may owe tax in other states due to economic nexus laws. This can happen faster than you think (usually after $100K in sales or 200+ transactions in a state).
What to Do
- Review your sales by state quarterly
- Consider using a tool like TaxJar to automate filings
- Don’t ignore state-specific rules for collecting tax on shipping or digital goods
Pro Tip: Mismanaging sales tax can lead to penalties later. Staying compliant now keeps things clean. If you’re looking to work with a team of tax experts, contact us today!
Are You Tracking the Right Metrics?
Squarespace shows you sales but not profit, cash flow, or cost of goods sold (COGS). Without knowing these numbers, it’s impossible to answer: Am I actually making money?
This is where accounting software like Xero becomes essential. When your Squarespace store is connected to a proper accounting system, you can track profit, expenses, and cash flow in one place instead of guessing based on revenue alone.
What to Track
- Gross profit per order (sales – COGS – shipping)
- Net profit after operating expenses
- Refund rate and how it affects margins
- Monthly tax liabilities
Finance First Tip: Make time each month to review your real profit, not just your revenue.
Get a Free Financial Health Assessment
At JBS Corp, we help ecommerce store owners take control of their business finances. Whether you need to understand your true margins, get clear on sales tax compliance, or plan for sustainable growth, we’re here to help.
👉 Check out our FREE FINANCIAL HEALTH ASSESSMENT and we’ll assess your store’s financial health, so you can move forward with confidence.
Let’s turn your beautiful website into a thriving, profitable business.
Contact us today to book a consultation.
