1. Do you have in-house eCommerce accounting expertise?
Transactions move much faster in eCommerce than in traditional retail, and you need to keep pace with that speed. There are also rapidly evolving service changes on marketplaces to comply with international tax liabilities. Depending on your business size, you may be equipped to handle this. Therefore, it is essential to consider your in-house expertise and hire an accountant to manage your finances.
2. Are you in touch with associated costs and tax laws?
a. Handling returns
Most eCommerce businesses let their customers return goods that arrive damaged, do not fit, or do not work for some reason. Do you have the processes in place to manage costs associated with handling returns?
b. Manual data entry
Every sale has several items to track: seller fees, shipping costs, local sales tax, inventory quantity sold, and more. Manual data entry can become a massive pain for you as your eCommerce business grows.
c. Sales tax liability
Ecommerce businesses have to remit taxes in almost every location where they make sales. Are you up-to-date with various sales tax liabilities? Or are these being handled by specialist eCommerce accountants?
d. Inventory management
No eCommerce business can be successful if they do not have a proper inventory management system. Keeping stock of goods is the backbone of your cash flow. Do you have that under control? With a real-time store performance tracker, you can see how quickly inventory is moving and which marketing channels are the most significant revenue drivers.
e. Tracking vendor charges
If you struggle to control such components of your eCommerce business, it might be worth hiring an accountant who can guide you accordingly.
3. Do you have a grasp of supply chain management?
4. Are you equipped to take care of VAT-related complications?
Based on the new guidelines that kicked in on 1st July 2022, VAT must be paid on all goods imported into the EU from British sellers. This also means that, in many cases, an intermediary will need to be appointed to serve the supplier and the authority. The checks and security measures will also be much stricter in the future. You need to know all these changes and rope in specialist eCommerce accountants for help.
5. Do you have the right tools in place for receiving payments?
Today’s shoppers expect to be able to pay online safely and quickly. Integrations with payment portals like Stripe or PayPal will thus become the norm. Ask your accountant if it is a good idea to take this one step forward and use a cloud-based platform to track all transactions and financial data. Many of these can also sync with other tools like sales management platforms to ensure that records are always up to date.