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Accounting for your Ecommerce Business

  • Monday, September 23, 2019

Why you need an accountant for your ecommerce business 

What is an ecommerce business? An ecommerce business is essentially any business that is conducted electronically on the Internet.

There’s ecommerce for one-off sellers who want to sell their new and used products online like Gumtree and Facebook marketplace. Then there’s your more niche ecommerce businesses who sell specific items, catering to specific needs. For example, horse-owners who want to buy saddles from an online horse retailer, or brides-to-be purchasing wedding favours online.

Now that you know what an ecommerce business entails, you may be wondering why an accountant needs to be involved in one.

Read on for reasons why hiring an accountant is one of the best decisions you could make for your ecommerce business.

More than just tax returns

What’s the role of an accountant in an ecommerce anyway?

Accountants specialise in more than just tax returns, so you’ll definitely need them on more than a once-a-year basis.

It’s the duty of an accountant to identify and maintain the financial health of a business. Think of them as your doctor…but for finances. These behind-the-scenes specialists make sure your business runs smoothly in a financial and legal framework.

Understanding, maintaining and improving

1.Understanding your ecommerce - We’ll gather market trends, discrepancies, end-of-year statements and go over your deductions and credits with you. 

2.Cash flow and income tracking – A higher marginal cost is involved as your business sells physical goods. Don’t lose track of the company cash flow. Hire a professional to keep on it. 

3.Inventory and expenses – Similarly, you’ll need to stay on top of your online shop’s inventory. Ensuring complete and accurate financial data requires every expense on record, from big to small and business to business or business to consumer. 

4.Tax preparation – One simple mistake in your online shop’s tax preparation could be costly with the Australian Taxation Office (ATO). You’ll need someone to stay on top of documents, financial records and receipts. 

Working with you

It’s okay to ask for help for your online business when you need it. Many small businesses run as ecommerce, and we all know the blood, sweat and tears that go into a small business for it to succeed.

Remember that an ecommerce accountant will work with you, and isn’t a threat to you or your business.

By hiring an accountant for your ecommerce, you can focus more on what makes your business unique. There’ll be more time for you to focus on your product offerings, marketing efforts and further expansion. Now you can finally spend Friday nights with your loved ones rather than slumped over your kitchen table doing bookwork.

Your local Gold Coast Accountant - Crest Accountants love helping people with business projects. By letting go of your business responsibilities just a little, you can reap great rewards, and free up your time to focus on other aspects of your business.

Knowing is achieving – so let us show you what we know about business and help you achieve financial success in yours.

Need some help with your ecommerce business? Contact Crest Accountants today to find out how we can assist you with your business finances.

 

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