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Writer's pictureReuben Bergola

Why Do You Need An Accountant If You're An Amazon Seller?

International consumers now have a new opportunity to expand their e-commerce operations into other nations thanks to Amazon's official launch in Australia.


In general, businesses should be aware of the standard Australian company registration procedures and any unique standards set by Amazon business in Australia.


Australians, in particular, have already spent more than $620 million on Amazon in the US. According to a survey, three out of four Australians believe they are "more interested" in purchasing from Amazon Australia than from any other e-commerce vendor.


This is a great opportunity for retailers to learn more about Amazon's platform because the company has already started serving the Australian market.


Selling on Amazon is a fantastic way to expand your online business, but if you're just getting started, you might be looking for Amazon seller money-saving tips. It will be easier for you to stay out of trouble with ATO if you build your Amazon business on a solid financial basis.


Due to this, we have put together the following financial advice for Amazon sellers. Observe them during tax season to avoid spending money and encountering problems afterward.


Employ A Qualified Accountant


If your business is still in its early stages, you might want to think twice before investing in professional accounting services immediately. But in all seriousness, this is among the best financial tips for Amazon sellers.


A qualified Amazon accountant in Australia may help you save money on taxes by assisting you in building your business properly from the beginning.


Doing your accounting could take a lot of time, even if you know what needs to be recorded. You may free up time by working with an expert in e-commerce accounting, so you can focus on expanding your business. Tax deductions are available for accounting services.


Think About the Selling Costs On Amazon


Another financial advice for Amazon sellers is to factor seller fees into your profit and loss computation. As an Amazon FBA (Fulfilled by Amazon) business operator, you will be charged for each sale you make.


For its storage and fulfillment services, Amazon charges each seller a fee known as FBA. Fees are subtracted from your revenue based on the dimensions and weight of your goods.


In terms of finances, it's critical to maintain track of your gross sales, which are fewer merchant fees and other expenses, and to keep merchant fees distinct from operating expenditures.


Pay Close Attention To Recording All of Your Expenses


Amazon Sellers have the same tax benefits for business expenses as any other internet business. As another piece of financial advice for Amazon sellers, keep your receipts!


Here are some examples of potential deductible expenses:


  • Amazon levies fees

  • Inventory and stock

  • Home office expenses for branding and marketing, as well as for sponsored social media posts

  • Accounting fees


Accept Refunds


Although they are never pleasant, refund requests do happen from time to time. When a consumer cancels an order before it is dispatched, these refunds may be issued in response to damaged or returned goods.


Therefore, another financial tip for Amazon Sellers is to register your sales as soon as you complete a customer order, whether or not a refund request comes through later. Any returns or refunds should be tracked separately.


Because refunds will ultimately result in decreased gross revenue, it will be simpler to reconcile your Amazon profit and loss account.


Conclusion


If you are an Amazon seller, a few financial tips can help you run your business more effectively and efficiently. First, keeping track of your expenses and income is important to stay organized and on top of your finances. Second, keep your inventory levels low, so you don't lose too much of your capital in stock. Finally, don't be afraid to reinvest your profits into your business to help it grow. By following these tips and hiring an accountant in Australia, you can ensure that your Amazon business is successful and profitable.


An Amazon accountant in Australia will undoubtedly simplify your life and save you time and money. To learn how to begin outsourcing your Amazon accounting immediately, get in touch with The ECommerce Accountant.

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