Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
If you have started a business before, you may have some advantages and knowledge when it comes to managing and running your current business. But when it comes to the online market, accounting works differently. An online marketing platform is an ever-changing place, and it's full of competition. You don’t just need an accountant—you need someone who specializes in how the industry works.
In this article, we'll learn more about an expert eCommerce accountant’s roles, why you should consider hiring one, and what makes an accountant a good one so you know if they’re worth hiring.
Ecommerce Accountants: Who Are They?
You'll encounter bookkeeping and accounting services when you decide to hire accounting services. These services may sound the same if you're new to the business. But their roles are very distinct, and both of these services are equally important for your business’s success.
To put it plainly, an expert bookkeeper keeps all the records of your business transactions; your inventory expenses, shipping, payrolls, and all financial transactions. You can see it as keeping notes for your business expenses and income.
On the other hand, accountants use your data for analysis. All the data from your bookkeeping can assess the current status for your industry. Accountants can tell you if you are earning a profit or losing money. Based on your records, they can forecast your potential income in the coming months or years, which can help you strategize to improve your business further.
What Do They Do?
There are several vital tasks accountants can do for your small business. Let's take a closer look at these tasks to see the advantages expert accountants can provide you.
Preparing and adjusting book entries
It's an accountant's job to make sense of your financial records. Your initial records only show all your transactions, but you don't know what happens from there. Your accountants can balance your transactions, so you know your income and your expenses. They can also help you see the accurate date and time when you used the money.
Furthermore, in some businesses, there are scheduled financial transactions. If you're inexperienced, you might interpret this as lost money. Accountants can help with these issues and keep your books clean and organized.
Accountants can answer to your business’s auditors
Many new sellers think that small businesses are exempted from auditing. Most tax collection agencies allocate the resources to audit small businesses because the small ones often get filing taxes wrong.
Audits are done by an independent auditor who thoroughly examines all of your books. They make sure all the data of your financial statements go to where it's intended to as recorded in your books. Accountants can answer to the auditor, especially when potential issues arise.
Furthermore, when your audit reports come out good, it opens you to loan opportunities and even sponsor partners that can help you expand your business.
Handling all tax-related matters
Taxes are very confusing. From collecting them to filing them, you'll burn through your profit by paying more than what is needed or incurring fees if you don't know how taxes work. Ecommerce tax accountants make sure of smooth tax handling. For example, when you sell, at times you must pay sales taxes.
Your accountants can help you price your products to collect the proper sales tax and pay them on time to avoid issues. Furthermore, your accountants can handle the filing to ensure it is accurate and always on time. Accountants can also find a way for you to get discounts on your taxes and even find ways to make you eligible for exemptions.
Forecasting and risk analysis
The data in your books are not only valid for your present situation. Your accountants can use it to forecast your future income. The recorded data creates a pattern that experts can interpret to see how much you will earn in the coming months. This forecasting is helpful so you can assess your next move.
Furthermore, the trends of the online marketplace are fast changing. You can't have the same strategy for the whole year, or it will be hard to stay on top of your competitors. You can plan with your accountants about changing prices, maximizing your inventories, and even what goods you should sell.
Are They Worth Hiring?
Hiring external services may seem an unnecessary expense to you, but they will be beneficial as your business grows in the long run. Of course, choosing the correct expert to trust is essential. If you are to invest in external services, you might as well get the best one.
If you are doubtful about the services, some situations can tell you your accountants are effective. Here’s some things to take note of:
- All your financial records are organized. When your accountants do their job correctly, you are not kept in the dark. You should be able to access your documents at any given time. This will enable you to stay on track with all your expenses, from inventory to payroll.
- The roles are designated to the correct people. When hiring accounting services, don't expect one person to manage all your transactions. You should at least have one bookkeeper and one accountant to help you with your finances.
- You have a stable strategy for your fund allocation. As we've mentioned, trends in the marketplace change, and your expenses may vary. Your resources should catch up with these changes. Accountants that do the proper forecasting can help navigate your business through these trend changes.
Final Thoughts
Are you now convinced that eCommerce accountants can help you with your business? Then, maybe it’s a wise move to hire eCommerce accounting services. Don’t go wasting hard-earned money on mediocre service. At Unloop, we can give the best service to your eCommerce business.
We have bookkeeping, income, and sales tax services perfect for small businesses. Our experts are experienced in handling eCommerce businesses, so you know you are in good hands from day one.
Contact us now and see how we can help pave your way to success.