Here’s why you need an accountant if you're selling online
Going online is a great opportunity for small businesses. It can help expand their offering and grow their customer base (including their international reach). However, setting up a successful ecommerce platform comes with its own challenges.
With many businesses still closed and everyone spending more time online, it’s no surprise that there’s been an explosion in demand for online shopping.
It’s essential to have your financial house in order before you start expanding into new areas. It’s also vital to implement best practices from the beginning of your ecommerce journey to avoid headaches down the line. Fortunately, accountants can offer expert guidance through the world of digital sales.
Breaking down reports
If you don’t know your numbers, you’re flying blind – but Amazon, Etsy, eBay, and other online sales platforms all use vastly different reporting methods. If you’re using multiple platforms, this can quickly become tricky to manage. Fortunately, accountants can interpret the various reports and ensure nothing slips through the cracks.
It’s vital that ecommerce businesses understand the options available for reporting provided by the various selling platforms to obtain correct information. For example, there are so many different Amazon reports. An accountant specialising in ecommerce can make sure that you’re using the right one.
Management reporting is essential for any business launching in a new industry. Financial reporting allows you to view the areas of your business that are profitable and make relevant business decisions. eCommerce is fast-moving and requires sellers to quickly adapt to remain profitable. Entrepreneurs require transparency and easy access to their accounts so they can make quick business decisions.
Juggling tax regulations and legislative changes
eCommerce business leaders have the luxury of storing and sending goods from wherever they like. That can mean keeping costs down, faster delivery times or boosting supplier relationships. However, there are hidden tax implications to where you choose to store your stock if you’re selling in multiple countries.
Choosing an accountant with a sound knowledge of currency, import and export rules, and the compliance issues around that are vital for ecommerce businesses.
One significant benefit of ecommerce is the ability to sell globally. However, this means that foreign income needs to be considered. While losing amounts to currency transactions can seem minor at the time, these losses can quickly add up. Accountants are in the best position to advise on ways to minimise exchange losses.
Setting up a currency account will enable you to hold funds in a certain currency and then make relevant payments in that currency also, meaning no exchange into your domestic currency needs to take place.
Bring on an accountant
Expanding your business onto an ecommerce platform is a great opportunity. It’s important to work with accountants like Flor-Hanly who understand online sales and cross-border tax implications to help you avoid any pitfalls along the way. Call our team in Mackay on 07 4963 4800.