Selling online? Why you need a clued-up e-commerce accountant

There are accountants and then there are accountants. Or so you might think. But if you run an online store or e-commerce website, you really need a clued up e-commerce accountant who understands the ins and outs of your business model.

Someone who talks your language

For the best service, you need an accountant who actually understands what your business does and how it all works. E-commerce is not the same as traditional retailing, so you need an expert who understands the difference.

By choosing an e-commerce accounting specialist, you will also have access to someone who can provide guidance on properly managing the additional tax burdens and red tape that trading online attracts. You should be able to ‘pick their brain’ periodically to help you plan out your financial strategy.

Someone who properly understands VAT in the digital space

How does VAT apply online? How do you collect and reclaim VAT? What are the international implications of VAT? You need a specialist accountant who not only understands the issues themselves, but who can also explain your obligations so that you can streamline your processes accordingly.

Someone who grasps distance selling limits

In 2009 the EU imposed ‘distance selling limits’ that govern sales to customers living or trading in member states. If you sell more than €35,000 worth of goods to customers in Ireland for instance, you will also need to register for VAT in that country too. The more your international market increases, the more complex your VAT obligations become. And the more important an e-commerce accountant becomes.

Someone who uses technology effectively

Trading on the Internet, you and your employees are used to systems that make trading as simple and easy as possible. An e-commerce accountant is not only aware of these efficiencies, but will also leverage similar tools to help streamline and simplify the accountancy process for you too. Your ideal e-commerce accountant will use online systems like Xero to help both of you keep track of company finances.

Someone who can sort out your year-end

As well as managing the complexity of your finances during the financial year, you need a specialist who can pull everything back together in time for your annual tax return. Using a good online accounts tool, your e-commerce accountant should already have most of the details in order, but you need to be sure that they can properly manage your liabilities, paying just the right amount of tax – no more, no less.

E-commerce may be a rapidly growing industry, but many traditional accountants have yet to catch up. Choose a specialist e-commerce accountant to ensure your business receives the advice and guidance needed to plan properly for the future.