Updated: Dec 12, 2019
E-commerce is one of the fastest-growing industries today, driven by the wide use of the internet and changing customer preferences. As your e-commerce business grows, it is essential to have effective accounting to ensure sound financial health.
An e-commerce accountant doesn’t only know how to crunch the numbers. Instead, he understands how to generate reports quickly and appreciates the evolution of the business. But while online stores yield massive potential in a digital-driven world, people often start from meagre finances and cannot afford to hire full-time accountants.
As such, you end up doing the books yourself to stretch your budget. However, you may end up loathing the task as it eats up much of your time for other important matters like finding products to sell or promoting online. Worst, there are mistakes in your bookkeeping, which have significant consequences.
Avoid this problem by hiring an accountant who can work when you need them. You can leave them the books to be balanced, and ask them how they came up with the number. They also know what taxes to pay and what can be written off. At the same time, e-commerce accountants will give you advice on details, such as receipts to keep, to avoid trouble with the Australian Taxation Office.
They are also aware of the sales tax that you must add to every product sold on your Amazon FBA page or your website. However, take note that you pay them only for the services they rendered without the typical benefits that full-time employees get.
While this set-up is cost-efficient, it will not work once you have expanded the business significantly. By that time, you will need a full-time CPA who will not only ensure that you comply with ATO regulations but also show you ways to make more money with less effort.
But until then, here are the considerations in looking for an e-commerce accountant:
How’s their personality and work ethic?
Aside from attaining an individual license from the AASB, the CPA you will hire must be professional enough to answer your question, return phone calls, and meet up with you whether in person or online. Communication is key to this kind of setup, and it won’t work if they don’t relay problems or concerns regarding your numbers. It’s just easier to work with someone approachable any time you need to clarify something with them.
How do they bill and market themselves?
Updated accountants charge a set fee for the monthly services they render and ask for a partial advanced payment. This value pricing approach works better rather than per-hour rates that can accrue over time. A fixed monthly fee also allows you to manage your budget better because anything above that amount can be saved or used for something else.
Check how they promote their services, too. E-commerce is a vast field, and you want an accountant that understands how online stores work. They should also have a sufficient understanding of the industry as a whole. Moreover, they have something to offer more than the typical tax accountants.
Hire a dependable e-commerce accountant now
If you are looking to outsource your online store’s accounting needs, get an e-commerce accountant now to keep track of every bit of money that flows through your business. Having an accurate view of the cash flow will help you make intelligent business decisions, such as whether to hire more people or cut costs without compromising quality.
Get in touch with us to help you find e-commerce accounting services for your online store.