The good news is that your ECommerce business has finally taken off, and now you're making really good sales. The not-so-good news is that despite this, for some reason, you're still having difficulty with distributing profits and even taking on wages. Perhaps you've got profit being made by your Amazon fulfilment business, but the business itself is still largely cash poor. Alternatively, you could have a lot of cash because your business is a success, but you've just been hit with a huge tax bill, stemming from your business being incorrectly structured.
If any of that somehow applies to you, or you're in a situation that sounds eerily similar, you need an accountant for ECommerce immediately.
ECommerce Accountant
Put simply, if your business is digital or if you're the business as an influencer, ECommerce accountants specialise in assistance with online businesses. Whatever market you're competing in, they're sure to have a full understanding of it. This, paired with multinational tax strategies, will help your business make the most out of all its earning down to the cents.
Everything you end up saving with their help can then be directly reinvested for the sake of growth. It also means that you have someone with you who can help your business thrive by doing analysis, having certain systems implemented as they see fit and making informed recommendations.
50% of businesses don't make it past their first 5 years, according to a recent study from Xero. On the other hand, businesses who had an accountant that they employed on a regular basis alongside accounting software enjoy a survival rate of 85%.
In-Depth Understanding
One of the things that ECommerce businesses rely on the most are the effectivity of digital marketing and their supply chain. It is key for the accountant you hire to have a clear understanding of this. In order to break even from every purchase acquired, dropshipping businesses usually need an average of around 200% return on investment (ROI).
Being unaware of your Break Even Return On Advertising (BEROAS) can be disastrous for your business, since it tells you how much you need to earn back against what you spent for ads so that your business can still make a profit.
Top Tax Strategies
Did you know that there is a perfectly legal way to pay 0% of what you make for taxes? Bet you didn't, but your ECommerce accountant has known this whole time. The secret lies in properly structuring your business and tax planning on an international scale. There are huge opportunities for savings on your tax, depending on what business model you use coupled with your supply chain. Of course, there are other rather specific criteria involved, which an ECommerce accountant can assist you with every step of the way.
Conclusion
Employing an accountant is a default requirement in the formula for a business' success. However, if your business is online, it will do you a world of good to hire an accountant who is well-versed in the ins and outs of your ECommerce business. Your business will gain a huge advantage as soon as you get an ECommerce accountant on board.
Do you need accountant services online? Contact The ECommerce Accountant today! We are business advisors for influencers and online stores alike that can’t wait to help you grow.