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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.

Amazon is not just a regular online marketplace; it's a massive platform that facilitates countless transactions on a daily basis. And where there are transactions, there are taxes. Sellers must understand the tax obligations of selling on such a platform. The solution? Amazon seller tax software designed for e-commerce platforms. 

Taxes can pose business challenges due to the varying rates across jurisdictions. One wrong move can result in penalties, fines, and potential legal issues. By harnessing the power of tax software tools, you can automate sales tax filings while staying compliant with the ever-changing tax regulations of Amazon. 

Before we delve into the best tax software for Amazon sellers, let's ensure we're all on the same page about the fundamentals of sales tax in this online marketplace. 

Understanding Sales Tax Basics for Amazon Sellers

Sales tax is a transaction-based tax that varies by state and sometimes by local jurisdictions. As an Amazon seller, you must know whether you are responsible for collecting and remitting sales tax returns based on specific rules and regulations.

In many cases, Amazon takes care of the hassle of calculating, collecting, and remitting sales tax for orders shipped to certain states. Isn't that a relief? No more stressing about manually figuring out tax processes for every transaction in those states.

But what about the other states? Sadly, the landscape changes when it comes to other states where Amazon doesn't assume the role of a facilitator. In these jurisdictions, sellers are responsible for the entire sales tax process. They must fulfill their duty accordingly to avoid any legal issues.

You can refer to this table for more information to find out which countries are covered by Amazon's marketplace legislation.

What Makes FBA the Most Complex Aspect for Sales Tax?

Sales tax is a topic that affects every ecommerce retailer, regardless of their size. But when it comes to Amazon FBA, the realm of sales tax can become more intricate and demanding compared to other retailers.

Amazon FBA offers numerous advantages, such as storage, packaging, and shipping services, allowing you to focus on their products and customer experience. But the convenience of FBA also brings with it a complex web of sales tax obligations that businesses must unravel.

Let’s start with the concept of Nexus. It refers to an Amazon seller's connection or presence in a particular state. With FBA, sellers often store their inventory in Amazon’s fulfillment centers across various states. This physical presence in multiple states can trigger sales tax obligations in those jurisdictions, even if the seller is based in a different state.

Another one is the dynamic nature of inventory movement within Amazon’s FBA network. Inventory may be transferred between fulfillment centers to optimize storage and shipping efficiency. While this benefits sellers in terms of logistics, it adds intricacy to sales tax compliance since the movement can impact the specific jurisdictions where sales occur.

Regulatory changes can also indicate an ongoing challenge for FBA sellers. Sales tax laws and regulations are not static; they often undergo state, country, and local modifications. These changes encompass new tax rates, adjusted thresholds, or revised exemptions. Staying updated and ensuring compliance can be demanding.

Let's not forget about physical products or tangible personal property. Sales tax obligations typically apply to the sale of physical goods, which is true for many products sold through Amazon FBA. Determining the correct sales tax rates and taxability of each item can be a lot, mainly when exemptions or special rules apply to certain things.

Navigating these hurdles requires a proactive approach to streamline sales tax management. The question now is, how will you rise to the challenge and stay on top of your tax responsibilities?

4 Sales Tax Compliance Software for Amazon Sellers

Managing Amazon sales tax compliance can quickly become overwhelming and prone to errors. Fortunately, there are solutions available to simplify the process.

You can now leverage sales tax automation software that integrates with your Amazon account. These nifty solutions take the burden off your shoulders by automatically calculating the appropriate sales tax for each transaction based on the customer's location and applicable tax rules.

As promised, here are four tax software options for Amazon sellers like you:

1. TaxJar

One of the most challenging tasks in sales tax rate computation is the first step—knowing which jurisdiction's sales tax nexus you fall under. National and local tax regulations make sales tax more complicated. But you can skip these worries with Taxjar, as the software stores information from 11,000 states, provinces, and municipalities. 

Amazon also has the Marketplace Tax Collection, so even the tax acquisition and remittance are made for you. Meanwhile, Taxjar lets you export sales data in a CSV file to complete your sales taxes and have it ready for your financial reports.

2. Taxomate

Taxomate has you covered on your sales and income taxes. As your taxes are monitored, so is your inventory. You'll have data on best-selling products and when it is time for stock replenishment. 

Once you purchase from Amazon and other ecommerce sites like Shopify and eBay, the details are automatically sent to Taxomate. Given that you have expanded your customers abroad and use a different currency, the multicurrency function of Taxomate will make tax computation and remittance easier.

3. A2X

Another reliable software that can track your ecommerce business operations is A2X. Unlike other software that focuses on taxes, A2X's coverage is broader. It serves as automated bookkeeping for your business, which removes the need for manual input and the risk of data inaccuracy. 

Amazon FBA and sales tax assistance are made possible because the software monitors FBA inventory locations and the destination of orders. These two details are the basis of sales tax rates. Because of the historical data available on the software, you can also check trends on sales tax and your business as a whole. 

4. HelloTax

Your customers might be from countries that pay VAT, so it pays to know about it and how it is implemented. HelloTax helps you comply with requirements by offering features tailored to VAT calculations, reporting, and compliance. 

Various EU countries and some provinces in Canada can benefit from this tax information reporting software. Most have distinct VAT systems and regulations requiring careful attention.

Unloop: Your Trusted Partner in Sales Tax and Accounting

Navigating taxes, whether for local or international sales, can be a complex undertaking. You must understand how much tax is owed in each country or the recent changes in guidelines. But fear not; we're here to help!

At Unloop, we understand your challenges as an Amazon seller, so we've curated a list of exceptional software solutions to make your tax troubles a breeze. These innovative applications enable you to accurately calculate tax rates based on specific regions where your products are sold, simplifying the compliance process like never before.

But our support doesn’t stop here. We’re here to handle all your financial management needs through our reliable and efficient sales tax preparer services. You can focus on the bigger picture of your business while we handle the nitty-gritty of Amazon tax management.

Let us be your reliable partner in conquering the complexities of Amazon sales tax. Book a call now!

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.

As a small business owner in Alberta, you may be looking to start selling your products or services to your locality and eventually expand across Canada. However, it's essential to be aware of the local Alberta and Canadian sales taxes to know how they affect your business finances. Whether you have begun your business or are still thinking about what to put up, this article will be helpful for you!

We'll discuss some great business ideas in Alberta, Canada, and give you the sales tax knowledge you need to be a tax-compliant business. Let us also share a few tips to ensure your small business thrives.

Top Brick and Mortar Opportunities in Alberta

Alberta is home to more than 4.7 million people, and the province has various resources. Through market research, you'll know what products the population needs. The supplies easily found in Alberta can give you an idea of what products to sell. Here are some business ideas that may click in the region: 

Assistance to Busy Professionals

Alberta is a highly industrialized province. It is home to many professionals working 8-12 hours daily, so offering services that can assist them are great business opportunities. Here are some services you can explore:

• Pet daycare 
• Baby daycare center
• Home cleaning service
• Laundry service
• Lawn and garden service
• Snow removal service

Serving Beef and Dairy

Anything related to beef and dairy is an excellent business, as Alberta is rich in beef and dairy farms. Many individuals born and raised in the region manage their own fields. If you have recently bought or inherited land in Alberta, here are some ventures to take: 

• Beef and dairy delicacies
• A restaurant
• A catering business
• Supplying to huge names in the food industry

Anything Related to Construction

Next to food, you can utilize Alberta's prominence as a great source of construction materials. Construction businesses will never lose demand—buildings and establishments are continuously built as Canadian provinces industrialize and improve their local economies. As a small business, you can begin producing small supplies and slowly grow to become a supplier to construction businesses. 

Ecommerce Opportunities in Alberta

It is tempting to think that the sky's the limit when selling online, but this may not be true. There are individual considerations when selling on physical stores and eCommerce sites. 

Do market research, study what sells and where they sell best, manage your inventory, and learn how to deliver your sales. 

These tasks include your store launching, optimization, and product advertising and marketing. With millions of sellers on different eCommerce websites, the competition online is only getting more challenging. You need to be ahead or at par with your counterparts. For that to happen, you can do any of the following:

Go for the big eCommerce platforms: Know which platforms to launch your store in. The top eCommerce sites in Canada are: 

• Amazon, 
• Walmart, 
• eBay, 
• Costco, 
• and Home Depot. 

Expanding internationally also becomes easier when you start selling on these sites. 

Know what to sell: You can rely on numbers when deciding. Numbers will tell you which products are in demand. 

Manage your inventory: Once you have decided what to sell, you need to plan when you'll store your products and how you will deliver them. Many eCommerce sites also offer warehousing and fulfillment, like Fulfillment By Amazon.

Alberta Sales Tax and Countrywide Charges

Your tax obligations should go hand-in-hand with your objective and creative business plans. With every sale you make, you need to charge sales taxes. You are also obliged to file your personal income tax and corporate income taxes yearly. What are these? Let's learn about them one by one. 

Alberta Sales Tax Rates

Alberta follows the charging of General Sales Tax (GST), a federal tax charged to almost all products sold in Canada. Alberta's sales tax rate is 5%, so you have to multiply this value by the product's total price to determine how much sales tax you will add to the buyer's total cost. 

Provincial Sales Tax Across Canada

Across Canada's 13 provinces, sales tax current rates differ as some charge Goods and Services Tax (GST), while others charge Provincial Sales Tax (PST), Harmonized Sales Tax (HST), or Quebec Sales Tax (QST).

Alberta, Northwest Territories, Nunavut, and Yukon charge GST only. Saskatchewan, British Columbia, and Manitoba Charge both GST and PST. Quebec has GST and QST(Quebec is the only province with QST), and the other provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island have HST.

Knowing these different taxes is necessary once you open your business to buyers nationwide and in different provinces. 

Corporate and Personal Income Tax

You also need to know your personal and corporate income tax returns. The two are computed similarly: You must check to which tax bracket your income belongs to know how much you need to pay. Income tax in Canada is paid either monthly, quarterly, or annually. 

Tips for a Successful Small Business

Now, you already have some ideas about what type of business you can launch in Alberta and the taxes you should know. Before we let you go, here are some tips to ensure your small business thrives and succeeds

• Build a company you care about. Getting up and running every day is easier because you are working on something meaningful and close to your heart. 
• Be objective with your business plan. Set realistic and measurable goals, and strategize how to reach each target. 
• Have a solid support team. Delegate the technical tasks to experts to ensure they are done correctly and get frequent reports. 
• Be honest with your strengths and weaknesses. Knowing your business strengths allows you to invest in them more and duplicate them. These weaknesses will enable you to be more competent in strategizing. 
• Know your target audience. The lifeblood of your business is your customers. Always get to know them, what they want, how they respond to your services and offers, and what more you can offer. 
• Keep an eye on your company finances. Know your KPIs and have weekly, monthly, quarterly, and annual reports. The smaller your business, the more often reports should be. Knowing your financial status can help you adjust game plans right away. 
• Always pay GST/PST/HST/QST accordingly. Always comply with the tax requirements to ensure the Canada Revenue Agency will not run after you for unpaid taxes.
• Know when tax exemptions apply. After knowing how to comply with sales taxes, check which transactions and goods, like basic groceries, are classified by the government as tax-exempt. This way, you can recognize the rights of tax-exempted groups and individuals.

Alberta Sales Tax Assistance From Unloop

And that’s it. We hope we have enlightened you with enough information on sales taxes in Alberta and other Canadian provinces. With this knowledge, you can save money by paying the right sales tax amount for your products or services sold across Canada. 

If you need bookkeeping, accounting, and tax computation assistance, Unloop can be your partner. We began as a small eCommerce business, so we know the exact assistance a small business owner needs. 

Give us a call now at 877-421-7270. We'd love to discuss our offers with you!

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.

Nearly every business owner knows QuickBooks. Only three years ago, Intuit announced QuickBooks Amazon integration for small businesses to enjoy seamless payment processing and reconciliation on Amazon Business. The productivity rate has exponentially increased since this launch. 

Still haven't connected your Amazon Business and QuickBooks Online accounts? We’ll show you how an Amazon-QuickBooks integration can help you achieve new levels of accounting efficiency and success. 

Upsides of QuickBooks Amazon Integration  

Two is better than one, they say. So imagine the capabilities of the most powerful online market platform and the most comprehensive accounting software combined. The possibilities are endless. 

QuickBooks organizes your bank accounts' order and purchase transactions into categories and links. Thus, having Amazon-QuickBooks integration is a great way to save time and keep track of your books to revisit wherever and whenever you need them. 

In addition, accounting automation and reconciliation have never been easier. You can easily locate a transaction and get a complete breakdown. 

Imagine your business flow if you had this kind of integration. 

• Has an easy-to-understand dashboard: Users can access information about their business activities, like monthly sales and top-selling Amazon orders, through an easy-to-read graph. They can filter and drill them down based on the date range, product category, or individual stock-keeping units.
• Seamlessly links with your bank: Your bank account balance will be in-sync with QuickBooks's records affected by your day-to-day business operations. As a result, you'll have an easier time reconciling your business's bank account balance. 
• Manages your inventory: You can sync inventory replenishment and completed sales to your QuickBooks account. Get an accurate inventory valuation, positively affecting your income statement (COGS) and balance sheet (inventory account) reports.
• Automates your transactions: The integration saves you time and ensures that everything in the books is accurate with automation. Important documents like income declarations and tax payments will also be accurate, saving you from penalties.
• Calculates your sales and income taxes: You can view your sales tax obligation in each state with one click. Because it’s automated, it takes the hassle out of tax time. All you need is to put your product information and let the software do the rest.
• Provides comprehensive reports: With all the data in one place, you can run different reports using a single software. You can also customize reports to see your company’s key performance indicators. 
• Stores and secures your data in the cloud: The integration also ensures data security by storing all the data in the cloud, protecting all confidential financial data from hacking and corruption.

Do you know how to integrate Amazon with Quickbooks Online? How about your Amazon Seller account and QuickBooks Desktop? Let's help you set things up!  

QuickBooks-Amazon Seller Integration

Currently, QuickBooks Online cannot be synced directly to your Amazon account. But you can do this through a third-party technology or an accounting and bookkeeping agency. 

One of the ways to link your Amazon account and QuickBooks Online account is through Intuit’s own Amazon Marketplace Connector.

What You'll Need 

• Active QuickBooks Online account 
• Log-in credentials as the master administrator
• Active Amazon seller account

Procedure

Step 1: Connect. 

To start, go to Apps. Then, search Amazon Marketplace Connector by Intuit, click Get App Now, and follow the instructions. You'll then be directed to the log-in page of QuickBooks.

Step 2: Configure. 

You'll need to set up the following Synchronization Options: 

• Account Timezone
• Integrations Starting Date 
• Email Sync Report Options 

Step 3: Organize Your Workflow.

Now, you can begin selecting and deselecting the details you want to be part of your workflow. QuickBooks offers several useful workflow options.

• Invoice Creation Workflow: To manage your Amazon sales data as invoices on QuickBooks. 
• Financial Event Workflow: To make deposits on QuickBooks Online and pay your employees automatically in the Amazon marketplace. 

Step 4: Sync. 

Your QuickBooks account is ready to sync once you have mixed and matched your workflow options. First, choose between auto-sync (which syncs your account every hour) and manual sync, and then on your Synchronization Options, click Sync Now. 

FAQs 

Is Amazon Marketplace Connector by Intuit free? 

• Yes, and it has unlimited users. 

Will my data be safe and secure? 

• Yes, your data will be safe and sound.

Is there customer support available? 

• Yes, a dedicated team will help you set up or deal with any issues you may have. 

QuickBooks-Amazon Business Integration 

Fortunately, Amazon Business account owners have the Amazon Business Purchases app, which makes the integration process even easier for their QuickBooks Online account. 

What You'll Need 

• Active QuickBooks Online account 
• Log-in credentials as the master administrator
• An existing account for Amazon Business

Procedure

Step 1: Connect. 

Go to Apps; this time, search for the Amazon Business Purchases app and download it.

Step 2: Sync. 

Next, choose how far back you want QuickBooks to go when it downloads transactions from Amazon: a week, a month, a year, or two years. Whatever you choose, you still control which downloaded transactions will be added to your books and shown on your reports. 

Once you have decided, select Agree. A pop-up tab will appear, and you must enter your Amazon Business account credentials. Boom—done! 

Step 3: Configure. 

Your new Amazon Business purchases will appear on QuickBooks automatically. However, you must confirm them before they appear in your books.

Purchases on Amazon appear in QuickBooks, the same as your connected bank and credit card accounts. 

Transactions listed under the For Review tab are up for approval. They won't appear on your reports or financial statements until you confirm them. Once you've confirmed a purchase from Amazon, you'll find it in the Review tab. It will stay there unless you undo your approval and make a change. 

If you download something you don't want to add to your QuickBooks, you can exclude it. 

Step 4: Manage Your Purchases. 

The Source or Payee column displays the bank or credit card account used when you make a purchase. 

Since you can use multiple bank accounts for these purchases, it is important to confirm what you see here to the bank accounts in your QuickBooks.  

If you need to manage your bank or credit card accounts on QuickBooks, select the Account drop-down menu of each account. Don't forget to save afterward.

Select one under the For Review tab to take a closer look at a purchase transaction. With this, you'll see the products you purchased and an Amazon order link. 

For each product purchased, select a category that best describes the product you bought. Once done, click Add. That transaction will automatically go to the Reviewed tab. If you want to see the transaction details again, just select them. 

If you also download from your bank or credit card records, you'll also download the purchases from them. Make sure to match them at the For Review tab after you've added them from Amazon Business Purchases. Why? 

• It confirms that the transaction is correct. 
• It prevents duplicate transactions.

FAQs 

Is the Amazon Business Purchases App free? 

• Yes, unless you are using an Amazon Business Prime account. 

Can you use your personal Amazon.com account with QuickBooks? 

• Unfortunately, you can't connect your QuickBooks Online with your personal Amazon account. It only works with Amazon Business accounts. 

Can you use Amazon Business to connect to your client's account through your QuickBooks Online account? 

• You can't. Amazon and QuickBooks only allow the same administrator of both accounts to connect for the safety and security of your books and reports. 

QuickBooks Desktop Amazon Integration

Like the Amazon Seller Central-QBO integration, QuickBooks Desktop doesn't directly integrate with Amazon. For now, third-party apps in the market offer this integration for QuickBooks Desktop Pro, Premier, and Enterprise, such as:

• A2X — Best-received Amazon ecommerce accounting app that uses Google's cloud platform; you can make up to 10,000 transactions per month 
• Connex — Powered by Intuit and the priciest one with 24,000 transactions annually if you get the Gold subscription
• Synder — Most reasonably priced among the three; its third-tier plan offers multi-channel businesses 1,000 plus transactions per month 

Note that these three are paid apps. A2X and Synder offer a week's worth of free trial, but Connex doesn't.

Despite using a third-party app and spending excess expenses, connecting QuickBooks Desktop and Amazon is easier than you might think. Just go through the configuration wizard, select Amazon (or any platform you prefer), and click Connect. Easy! 

E-Commerce Integration with Webgility

Intuit has decided to make life easier for Amazon sellers with the recent release of QuickBooks Desktop 2022. 

The product’s new features include its swift and seamless e-commerce integration with Webgility, enabling users to track their transactions on Amazon, Shopify, and other e-commerce platforms easily and streamline other business processes.

Step 1: Sign up.

Simply register and purchase a package in Webgility to get started.

Step 2: Initiate.

In your QuickBooks Desktop interface, head to Company and click My Company. You will see an option to Get E-commerce Integration. Click this option.

Step 3: Connect.

Select and activate your preferred Webgility package. With your QuickBooks Desktop 2022 account signed in, your QuickBooks account will promptly link with Webgility.

Get Financial Advice from Unloop's Experts 

QuickBooks Amazon integration saves up time on manual data entry and eliminates switching between QuickBooks and Amazon over and over. Time is money, as we say. 

Moreover, it gives you an overview of how your business is doing. Integrating your Amazon to QuickBooks Online or Desktop is a great financial decision if you have a growing Amazon business and increasing business partners. The QuickBooks Desktop version may have some drawbacks in terms of pricing, but it's worth the money for hassle-free bookkeeping!

If you're unsure about this hip and new integration by Intuit and Amazon, you can always contact Unloop's financial experts for all your accounting needs. We're here to offer our insights and our high-quality ecommerce accounting service. Call us at 877-421-7270, and talk about the future of your Amazon business with us today.

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.

Are you running an ecommerce business? If yes, you know the online marketing platform is dynamic and highly competitive. Financial management can be especially tricky due to the unique characteristics and challenges associated with the businesses it caters to. You don't just need an accountant—you need an ecommerce accountant specializing in online businesses.

If you have started a business before, you may have gained some knowledge in managing and running your current venture. But when it comes to the online market, accounting works differently. 

In this article, we'll learn more about the role of an expert in ecommerce accounting, why you should consider hiring one, and what makes a good accountant.

Ecommerce Accountants: Who Are They? 

As an ecommerce business owner, many things must be done before your profit starts rolling into your bank account. Some of the most crucial processes are accounting and bookkeeping services, which are a must for your small company's financial management needs. 

Bookkeepers vs. Accountants

These services may sound the same if you're new to the business. But their roles are distinct, and both services are equally important for your business's success. 

You can see it as keeping notes for your business expenses and income. Here are some tasks a bookkeeper does:

• Financial statement preparation. A bookkeeper is responsible for recording financial transactions and organizing and maintaining financial records. 
• Inventory management. They record and track inventory transactions and update inventory documents. 
• Managing payroll. A bookkeeper helps with processing employee wages and deductions. 
• Producing invoices. Bookkeepers help in producing invoices, entering bills, and sending payments. 

All the financial data from your bookkeeping can assess the current status of your ecommerce business. Here are some tasks an accountant can help you with:

• Monitor cash flow management and provide metrics to see your cash position.
• Generate and prepare financial reports (balance sheet, tax returns, etc.) to show your business's financial standing.
• Tax planning. Identify tax-saving opportunities, and share advice on minimizing tax liabilities.
• Share advice and recommendations on your business's financial health and inventory management.
• Forecast your potential income in the coming months or years to help you with major business decisions.

How Do Accountants Help In Ecommerce Accounting?

Aside from those we mentioned above, accountants can do several vital tasks for your ecommerce business. Let's take a closer look at these tasks to see the advantages these experts in ecommerce accounting can provide you. 

1. Preparing and Adjusting Book Entries 

An accountant's job is to make sense of your business's financial records. Your initial financial records only show transactions, so the full picture remains unclear. Your accountants balance these transactions so you understand the flow of your income and expenses. 

They also help track the accurate dates and times of your financial activities. In some businesses, there are scheduled financial transactions. But if you're inexperienced, you might interpret this as lost money. Accountants can help with these issues and keep your books clean and organized. 

2. Collaborating With Your Business's Auditors 

Many new sellers think that small businesses are exempted from auditing. But in reality, most tax collection agencies allocate resources to audit small businesses because these enterprises often file taxes incorrectly. 

Accountants help ensure you have accurate financial information, and they can work with the auditor to address any potential issues. Additionally, when your audit reports come out well, it opens you to loan opportunities and even sponsor partners that can help expand your business. 

3. Handling All Tax-Related Matters 

Collecting and filing taxes can be very confusing, especially sales tax in the ecommerce market. You'll burn through your profit by paying more than needed or incur fees if you don't know how the taxing system works. Ecommerce tax accountants ensure you avoid this and maintain smooth and compliant tax handling.

Your accountants can help you

• price your products to collect the proper sales tax,
• pay taxes on time to avoid issues,
• ensure timely and accurate sales tax compliance,
• get discounts on your taxes; and even 
• find ways to make you eligible for exemptions.

4. Precise Forecasting and Risk Analysis 

The data in your books are not only helpful for your past and present situation. Your accountants can also use it to forecast your future income. Recorded data creates a pattern that experts in ecommerce accounting interpret to see how much you will earn in the coming months. 

Ecommerce trends also change rapidly. Ecommerce sellers like you can't have the same strategy for the whole year; doing so will make it difficult to stay on top of your competitors. Forecasting is essential in detecting these details, enabling you to assess your next move and achieve optimal results.

You can plan with your partner e commerce accountants about

• changing prices,
• identifying unique challenges on ecommerce platforms,
• maximizing your inventories, and even 
• the types of goods you should sell.

What to Look for When Hiring an Ecommerce Accountant

Hiring external accounting and other services may seem unnecessary and not-so-secure to you, but they will benefit your business in the long run. Of course, choosing the correct expert to trust is essential. If you are to invest in external services, you should get the right one. 

Here are the top things to consider when hiring an ecommerce accountant: 

1. Relevant Ecommerce Experience

Look for an accountant with specialized experience in ecommerce businesses. The systems in sales channel platforms such as Amazon or Shopify differ, so managing your expenses may vary. Accountants with relevant experience in ecommerce know how to properly navigate and elevate your business through these dynamic, competitive environments. 

2. Proficiency with Accounting Tools 

Competent ecommerce accountants are well-versed in popular platforms like QuickBooks Online, Xero, or other accounting software. Their proficiency with such tools streamlines the accounting processes and boosts work efficiency. 

3. Understanding of Tax Implications for Ecommerce

Ecommerce businesses face unique tax considerations, especially when dealing with sales tax, international transactions, and nexus laws. Your chosen accountant should have a thorough understanding of tax regulations and be able to ensure compliance with relevant tax laws. 

4. Proactive Financial Analysis and Planning

Exceptional ecommerce accountants proactively analyze financial data, identify trends, and provide strategic insights for a business's growth. Look for an accountant who offers detailed financial forecasts, cash flow analysis, and budgeting guidance. 

With their support, you can make informed decisions, allocate resources effectively, and navigate online marketplace fluctuations more confidently. 

Final Thoughts

Are you convinced that ecommerce accountants can help you with your business needs? Then, it's a wise move to hire ecommerce accounting services. Don't go wasting hard-earned money on mediocre service. At Unloop, we give the best service to ecommerce companies.

We have bookkeeping, income, and sales tax services perfect for small businesses. We also use the best accounting software to automate our processes. Our experts are experienced in handling ecommerce businesses, so you know you are in good hands from day one. 
Book a call with us today, and let's accomplish all your ecommerce accounting needs!

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.

Did you know that we are currently experiencing an ecommerce boom? When brick and mortar stores shut down in 2019, the ecommerce industry reported record-breaking sales. As retail stores continue to open and resume normal business operations, ecommerce sales continue to enjoy a surge in growth. No wonder everyone is jumping on the commerce bandwagon!

Unless you have been living under a rock, you’ve probably made at least a single Amazon purchase. Almost every product you can imagine, you can buy on Amazon. Many people grew accustomed to how easy and fast it is to order products online and deliver them to their homes. If you wish to start a small business, an Amazon store would not be a bad place to start.

If you have ever asked how much does Amazon charge to sell products, and other similar questions, then you’ve come to the right place. Scroll down and read to learn more about being an Amazon seller!

Why Choose Amazon?

Are you still unconvinced about starting an Amazon store? The Amazon marketplace unlocks many opportunities for a new seller like you. Understandably, you may be anxious about stepping foot on the Amazon marketplace without prior research about its good and bad sides. Below, we share some convincing reasons why it may be worth it to become an Amazon seller.

You Can Start Small

Starting a business doesn't mean you have to go all out and exhaust your savings as capital. The Amazon marketplace hosts hundreds to thousands of sellers with used and refurbished items for sale. You don't even have to source newly manufactured products from a supplier to begin selling! It's not so different from starting a garage sale, albeit with a global reach.

Access a Global Clientele

If you ask an Amazon seller what they like the best about selling on the Amazon marketplace, they would most likely say that their store and their products gained more exposure since they hopped on the ecommerce platform. The Amazon marketplace can be accessed by anyone (almost) anywhere, thereby widening your client base. With Amazon, your store becomes a global store.

Gain Customers’ Trust

Before ecommerce platforms like Amazon became popular, small business owners took their business online by building their websites. Today, people would easily dismiss such websites as too obscure and untrustworthy. However, by starting a business on Amazon, you share the reputable image that Amazon has maintained, making your potential clients and Amazon Prime customers trust your brand.

Let Amazon Do the Work

Fulfilling orders by yourself is tough work. For instance, you have to pack and ship your parcels individually while doing inventory management yourself. Fortunately, Amazon offers a service called Fulfillment by Amazon (FBA). Amazon FBA takes advantage of the company's extensive logistic network and their fulfillment center system, making shipping and fulfilling orders much faster.

Frequently Asked Questions (FAQs)

Do you have more questions about doing business on Amazon? It's a wise move to do your due diligence and weigh the risks and benefits of being an Amazon seller before taking the plunge. We have collected some of the most often asked questions about selling on Amazon. Read the following section and let your mind be at ease as you step foot in the world of ecommerce.

How Do I Become a Seller on Amazon?

Before you hop on Amazon, you should browse Amazon's different selling plans. Mainly, Amazon provides two tiers of selling plans: Individual Seller and Professional. Under the Individual Seller plan, you will have to pay $0.99 for every item you sell. Meanwhile, Amazon charges a monthly fee of $39.99 under the Professional plan. The choice depends on how large your business is.

If you have settled on which selling plan is the most appropriate for your needs, then you can proceed by creating a seller account on the platform.

What Products Should I Sell on Amazon?

If you haven't figured out a product to sell, looking at the top-selling products on Amazon may be a good place to start. Based on long-term observations, some products enjoy consistent sales throughout the year, year after year. For instance, books, clothing, shoes, jewelry, electronics, toys, and games always make it to the top of the list. So pick any of these product categories and craft a selling strategy.

You should also be wary of things like inventory management and storage fees. Stocking up and shipping your products would be much easier if you let Amazon do it for you through their fulfillment center. Shipping from an Amazon warehouse would be faster and more efficient when moving large quantities of products across the country.

Is it Profitable to Sell on Amazon?

Starting a business means taking risks, whether in a brick-and-mortar store or an online marketplace like Amazon. Some business owners even use their life savings as capital to launch small businesses. That's why you need to ask yourself whether attempting such an endeavour would be worth it in the long run. 

According to an estimate, being an Amazon seller is highly profitable. For example, 44% or almost half of Amazon sellers make anywhere from $12,000 to $300,000 annually. In addition, around 20% of Amazon sellers enjoy profit margins of 16% to 20%.

Is It Worth It to Be an Amazon FBA Seller?

If you want to grow your business to another stage, the answer would be a resounding yes. Instead of confining yourself to a physical store, you can take advantage of Amazon's international client base and fast logistics solutions. Becoming an Amazon FBA seller isn't as hard and capital intensive as starting a business from scratch.

How Much Does Amazon Charge to Sell?

If you ever Googled "what does Amazon charge to sell," it may no longer surprise you that there isn't a straightforward answer. Aside from the Amazon fee based on the selling plan you choose, they also charge a referral fee, a fulfillment fee, and other additional Amazon fees (such as storage fees). So there are layers of fees that may bite into your profit margins.

As mentioned before, Amazon sellers on the Individual Seller plan will be charged per item sold, while those on the Professional plan will be charged a fixed monthly Amazon seller fee. Meanwhile, Amazon also charges a minimum referral fee for every item bought and can range from 8% to 15%, depending on the product category. Lastly, if you opt to be an Amazon FBA seller, Amazon will also charge you an Amazon FBA fee for their fulfillment service.

Final Thoughts

Being an Amazon seller is no joke. Handling your inventory management and finances and fulfilling orders will be overwhelming as your business grows. How about letting a team of professional bookkeepers and accountants take over your books?

With Unloop you no longer have to be frustrated about sales tax, income tax and bookkeeping. So you can give your time and attention to running your business.

Get started with Unloop today, and see what it's like to run your business on autopilot.

Deciding to invest in bookkeeping software for your small business is already tough enough. Add choosing the right bookkeeping software for your business to the mix, and you can quickly become overwhelmed, especially with the countless choices available. 

In this article, we'll have Xero vs. Quickbooks vs. Freshbooks to help you decide which one is best for your business. We'll look at the similarities and differences in the accounting features of each program. So whether you're just starting or looking to switch to new software, read on for all the information you need to make the right choice!

Xero vs. Freshbooks vs. Quickbooks: Similarities

The three accounting software have plenty of similarities in the features they offer that you might ask yourself if there is a need for a discussion on Quickbooks vs. Xero vs. Freshbooks. When you sign-up for a plan on one these three, you can enjoy all these benefits:

Freshbooks vs. Quickbooks vs. Xero: What Set Each Apart

If the three have many similarities, these distinct features will be the deciding factors on which one you will pick. You’ll see that the three small business accounting software only have a few differences, but they will be enough for you to know which shines brighter than the rest. 

Freshbooks: Beginner’s Champion

If you want something straightforward and complete with everything a beginner in bookkeeping and accounting needs, Freshbooks is the perfect accounting software for you. The software has a simple interface and no complicated features that will make first-time users have a difficult time. Yet, despite the simplicity, it still has all the features you need to start and keep your business’s bookkeeping and accounting running.

Freshbooks pricing is also excellent for a startup or small business, freelancer, and a self-employed individual. The three plans don’t cost more than $15. Nevertheless, if Freshbooks doesn’t include the accounting services you need within the plan, Freshbooks has customized pricing plans. 

Quickbooks Live Bookkeeping and Priority Circle

One of the offers of Quickbooks Online is Live Bookkeeping which includes live bookkeeper customer support who will rummage through all your financial data for cleanup, storage, and categorization. So, if you ever sign-up for a plan for them in the middle of the year, you do not have to worry about the data from the first half of the year. They will take care of it.

You will also find Quickbooks Online’s payroll management feature helpful if you have employees. You can integrate a payroll software you are using on Quickbooks or use Quickbooks Payroll itself. 

Quickbooks doesn’t fall short with customer service too. After signing up for the plans, you will be added to the Priority Circle, where you can access resources on utilizing Quickbooks to manage your business’s accounting. 

Xero Analytics and Sales Taxes

Meanwhile, Xero takes data analysis to the next level through its Xero Analytics which you can upgrade to Analytics Plus. These features will allow you to produce a financial forecast from seven to 90 days in the future. You can also easily glimpse your business's financial health through a data dashboard projecting essential details about your business. 

Customize the reports you see by using your business's key performance indicators and metrics, so you can easily see where your business is doing good and which the areas of improvement are. 

Like Quickbooks, Xero takes over payroll management through Gusto Payroll integration. Xero also tracks sales taxes, one of the most difficult ones to track because of its sensitivity to change.

Bookkeeping Assistance from Unloop

Freshbooks, Quickbooks, and Xero are some of the best accounting software available, and they have many similarities. They are all cloud-based, double-entry accounting systems that allow you to manage your inventory, invoices, taxes, track your projects and time, and reconcile your bank’s information. Additionally, they each offer a free trial and various payment gateways. 

However, there are some key differences between the three programs. For example, Freshbooks is a beginner's champion because it is easy to use. Quickbooks’ Live Bookkeeping and Priority Circle can help you with bookkeeping tasks. While Xero Analytics and Sales Taxes can help keep your numbers on track if you sell products taxable in multiple states.

If you choose Quickbooks or Xero, we at Unloop can be your partner in running the tools. We have experienced bookkeepers and accountants who are well-versed in various accounting software. Give us a call today, and let us help you with your business’s bookkeeping.

Every business needs a reliable bookkeeping system. This system is meant to help owners make critical decisions that can eventually lead to business growth. Unfortunately, many entrepreneurs don’t know the bookkeeping basics for small businesses, leading to their business’s early demise. 

Proper record-keeping is essential in running a business. But, if you’re not well-versed in finances, navigating the different bookkeeping tasks may be difficult. 

To help you understand, we’ve prepared a guide that every small business owner should know. So take notes!

Essential Bookkeeping Basics for Small Business 

For small business owners, even basic bookkeeping can be overwhelming. But the more you stay on top of managing your business finances, the easier it gets. Below is the list of things you must know to get better at managing your finances.

1. The Difference Between Accounting and Bookkeeping

First things first, you should understand that bookkeeping and accounting are two different things. Many people confuse these two things. And although bookkeeping and accounting are separate tasks, they work together.

Bookkeeping is the backbone of an excellent accounting process. If you do the bookkeeping process properly, you can expect the result from accounting to be accurate and true, which will help scale your business.

Without bookkeeping, businesses won’t be able to make sense of their numbers. To help you further understand bookkeeping, here is a table of how it differs from accounting.

2. Types of Bookkeeping Systems

Small businesses can put two main types of bookkeeping systems in place. Business entities have the option of using one system exclusively or combining both. Here is a more detailed look at each type of bookkeeping system.

Single-Entry Bookkeeping

Most small businesses start with single-entry bookkeeping. With this method, every business transaction or activity only has one entry in the bookkeeping record. Only sales, purchases, receipts, and payments can be maintained using this manner. 

This bookkeeping method can keep your finances organized if your business handles minimal transactions.

Double-Entry Bookkeeping

The double-entry accounting system records business transactions in two entries. It offers checks and balances since it records a credit entry to match every debit entry. Transactions are recorded when money is received or lent—it is not a cash-based system.

Most professional bookkeepers use this method since this is universally adopted and gives the most accurate recording of financial transactions.

3. Using One Accounting Method

Maintaining track of your business finances is simpler if you record everything properly. You can do various things to ensure you are maintaining your records. First, use the same accounting method for all your bookkeeping entries. But before that, here are the two accounting methods.

Cash Accounting Method

This is done by recording financial transactions when you receive or spend money. This is much simpler to do.

Accrual Accounting Method

This is where you record your accounts receivable and accounts payable before you physically receive or pay the cash. This means that you can already record the transactions even if the money does not reach your accounts yet. 

4. Managing Financial Documents

After knowing the types of bookkeeping systems and accounting methods, you should also understand how to manage financial records through ledgers. Your ledgers are the heart of bookkeeping. 

Without them, you won’t have proof of the transactions that happen in your business. Regular updates will give a clear view of your cash flow and help with your accounting. 

Prepare Ledger Accounts

The success of bookkeeping is in organizing and categorizing your accounts. Your business’s finances come from many financial transactions. One can start small by generalizing records for sales or records in inventory tracking as long as it gives you a full and clear view of the money that goes around inside your business. 

As your business grows, here are some of types of accounts that would be included in your ledger: 

• Assets, like accounts receivable, prepaid expenses, and cash 
• Liabilities, like accounts payable, debt, and lines of credit
• Revenue
• Expenses
• Equity 
• Profit and loss

Post and Analyze Ledgers Regularly

Updating your ledgers depends on the volume of your transactions. You can update ledgers daily, weekly, and monthly. Regardless of how often you post on your ledgers, you must be consistent to avoid getting overwhelmed when the accounting period comes. 

After all these updates, consult an accountant to create financial reports for your small business. From here, you can see if your business is growing positively, if you need to enact strategies to improve further, or if you need to change any processes that aren’t working.

5. Investing in Accounting and Bookkeeping Software

Manual data entry is the old way. There are small business accounting software that can do more than bookkeeping for your business. Investing in software streamlines all accounting tasks, not just bookkeeping, for your business to help you manage your finances.

Here are some factors to consider for small business accounting software:

• User-Friendliness: Not all business owners can use advanced features. Look for an easy bookkeeping system so even beginners in your team can use it.

• Payroll Services: Most accounting software nowadays help employers handle their employee’s wages. Some also have a time tracking feature, which can be helpful when your employee’s wages are based on the hour.

• Inventory Management: If you have a product-based business, it is likely you have suppliers. Inventory tracking helps determine which supplies are still in stock and which need refilling. Some software can manage inventories across numerous warehouses.

• Mobile-Friendliness: By being mobile-ready, business owners can easily access financial information anytime and anywhere. Software with a mobile app allows you to manage your finances in real time, in the palm of your hand.

• Report Generation: Out of all the accounting features, generating reports may be the most important. There are accounting software options that can instantaneously generate different reports for businesses. Using financial data from these reports, you can better comprehend your company’s financial performance.

• Cloud-Based: Online accounting software makes it easier for business owners to access their accounting data. They only need a stable internet connection and a device to access the software—no need to download and install programs.

Why Proper Bookkeeping Matters for Small Businesses

Whether operating a small or vast enterprise, bookkeeping is essential to build a successful business. Understanding your cash flow, tracking expenses, monitoring accounts payable, and even tracking your sales tax starts with bookkeeping.

Here are reasons why you should have a bookkeeping system.

1. Traces the Source of Financial Transactions

You keep records of your business expenses, but isn’t it also nice to know the source of your transactions? Instead of looking at raw numbers and wondering where they came from or where they’ve gone, bookkeeping can tell precisely whether the entry is an expense or a sale.

In double-entry accounting reports, you can even record the type of business expenses in your books. There are several business expenses, such as meals, traveling costs, and accommodation. The details will help you plan your finances for more efficient spending.

Additionally, you can be sure that all of your financial transactions are in one place. So, when you need to pull your records for accounting or for references, you know where to look.

2. Aids in Financial Reporting

If you have proper bookkeeping, you have complete and organized data. Accurate financial data is crucial for your financial reports. Bookkeeping can summarize your business’s expenses, income, and ledger categories.

There are three primary financial statements that businesses need to evaluate their performance:

• Balance sheet
• Income statement
• Cash flow statement

Bookkeeping also provides more detailed reports such as expense reports, sales reports, and other statements showing key performance indicators. These reports are then used as communication for the business administrators and stakeholders.

Also, accurate financial reporting can be used to attract business investors. Information on how much profit your business generates and how you handle your expenses can be leveraged to attract inventors to your business.

3. Helps Manage Cash Flow

Income and expense tracking is vital in every business. There is more to running a business than merely making money. You also have expenses to pay that will keep your business running. 

It is critical to understand whether the flow of funds into and out of your company is balanced. If your expenses are through the roof, you’ll need to make more money or cut down on expenses.

Likewise, you can create a budget to improve your business if you have a healthy profit. 

4. For Tax Compliance

In running a business, one thing is for sure—you have to fulfill your tax obligations. The government requires different forms of tax payables from businesses. Bookkeeping records will help businesses calculate the exact amount of taxes they must pay.

Failure to pay your taxes can lead to severe consequences. Bookkeeping is crucial in ensuring you won’t be fined for getting your taxes wrong.

Get Professional Bookkeeping Services at Unloop

Bookkeeping and accounting are two essential parts of running a business, but most business owners only see accounting as essential. Bookkeeping seems like a menial task that’s only around for keeping records of financial transactions. However, bookkeeping is also important as it serves as the basis of accounting and keeps your business balanced.

Looking for professionals who are well-versed in bookkeeping? Unloop can help you with your needs. We offer services on bookkeeping, forecasting, payroll, and taxes. 

Book a call with us now and talk to our experts to see what we can do for your business!

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.

No matter how small your ecommerce business is, you still have a tax liability. If you live in Canada and sell a few items online, you must still pay taxes on your earnings. There are several different types of taxes that you may be responsible for, but let’s explore the essentials of filing income tax in Canada. 

This blog post will break everything down about filing your income taxes. Keep reading to learn more! 

Income Tax Basics in Canada 

Running an ecommerce business in Canada involves understanding and navigating the Canadian income tax system. It’s also important to note that the same tax laws apply whether you’re operating a brick-and-mortar or web-based business. 

So, as a business owner, you are responsible for calculating and reporting your income and paying the required taxes to the Canada Revenue Agency (CRA).

Here are some of the basics of filing income taxes in Canada: 

1. Determine Your Business Structure

How you’re taxed and the forms you must fill out during tax time depends on your business structure. Since you’re managing an ecommerce business, it falls into one of these business structures: 

• Sole proprietorship. An individual owns and operates the business. 
• Partnership. Two or more individuals operate and share ownership of the business. 
• Incorporation. The company is considered a separate legal entity from its owners. 

Sole proprietorships and partnerships report their income on a personal tax return, while corporations file a separate corporate tax return. In some cases, a Canadian-controlled private corporation (CCPC) may be eligible for a reduced tax rate of 9%.

2. Consider Territorial Rates

When calculating income tax, consider both federal and provincial or territorial rates. The federal income tax brackets for individuals range from 15% to 33%, whereas corporations pay a net tax rate of 15% with a basic rate of 38%, reduced to 28% after federal tax abatement. 

Rates of territorial or provincial income taxes vary depending on your location. So, aside from your business structure, these rates also apply when paying your taxes. 

3. Charging Sales Tax

For ecommerce businesses, it’s essential to charge sales tax on sales made to Canadian customers. If your annual revenue exceeds $30,000, you must charge the appropriate sales tax based on the destination province. 

This involves registering for the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) and remitting the collected taxes to the CRA.

4. Tax Deductions

In Canada, you can reduce your taxable income through tax deductions and credits. For small business owners like you, tax deductions can bump you into a lower tax bracket, reducing the amount of taxes you pay for the year. 

All expenses incurred while operating your business are categorized as business expenses, and you can claim them as deductions on your tax return. For example, if you’re renting a warehouse to store your inventory, the utility costs you incur are a business deduction.

5. Tax Refunds

When filing your income tax, you may calculate the taxes owed or any refunds you may be entitled to. If you cannot make the full payment immediately, you can arrange a payment plan with the CRA. 

On the other hand, if you overpaid your taxes, you may be eligible for a tax refund. Tax refunds could result from the CRA collecting more income tax than what was rightfully due, and they will refund the overpayment. 

Types of Taxes You Need to Pay

Businesses have to pay taxes like individual taxpayers based on their profit. Here are the types of taxes that may apply to your business: 

1. Income Tax

Income tax is imposed on the earnings of individuals or companies involved in business activities. It is calculated based on your taxable income. 

Some common types of income are employment income, pension income, investment income, and rental income. Even if you’re self-employed on your full-time business, you still have to pay for personal income tax.

If you’re selling on Amazon and other ecommerce platforms or creating paid content on YouTube, you’ll receive an income statement from these channels. You can use it for reporting within your tax return. 

2. Sales Tax

The sales tax in Canada varies depending on the province or territory in which you reside. There are three types of sales taxes: the GST, HST, and Provincial Sales Tax (PST). 

The GST is a federal tax, while the PST and HST are levied by the provinces. If you’re registered for GST, you must charge GST on all taxable goods and services made in Canada. The tax rates also differ across provinces.  

As a small business owner, income and sales taxes are most likely to be the taxes you’ll pay and charge. Here are the differences between the two: 

3. Corporate Income Tax

Once your ecommerce business is registered as a corporation, you must pay corporate income tax on the taxable income it generates. The federal corporate income tax rate stands at 15%. Corporate income tax rates vary depending on the area of jurisdiction and the size of your business. 

4. Payroll Tax

If you’re an ecommerce business owner with employees, you must withhold payroll taxes from your employees’ paychecks and remit them to the CRA. Payroll taxes include income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. 

The income tax deductions depend on the employee’s income and personal exemptions declared on their TD1 form. 

Every Tax Tip for a Complete and Accurate Return

Filing your taxes can be painless if you take the time to stay organized throughout the year and know what to expect come tax season. Learn how to take the edge off when these tax deadlines are fast approaching. 

1. Practice Good Record Keeping

Proper bookkeeping is essential to ensure a complete and accurate tax return. Keep track of all your income slips and receipts for deductible expenses throughout the year. This will help you stay organized and avoid costly tax filing mistakes. 

2. Pay Taxes and Get Your Refund

The easiest way to file is to do it electronically. The income tax e-filing deadline will be less of a headache if you can pay using accounting or tax software. This typically results in a refund being issued in less than a month. Direct deposit is simple and effective. Plus, it’s more secure than sending a paper check.

3. Amend Your Tax Form

What if you realized you added too many zeroes to your income tax return after filing it? Don’t panic - this is surprisingly common among many new and veteran business owners. 

First, gather relevant information or documents to help you correct the mistake. Then, submit a completed Form T1 Adjustment Request and other supporting documents. 

If the error resulted in paying more taxes, you must be prepared to pay the interest or penalties needed. On the other hand, if the mistake decreases your tax bill, the CRA can refund the amount. 

4. Work With an Expert Accountant

If you are unsure about certain aspects of your tax return or require expert advice, it’s best to consult a tax professional. An accountant can help you with complex tax situations, navigate Canada’s unique tax regulations, and assist in finding deductions to maximize your return. Working with a professional will help save you time, stress, and even money in the long run.

File Your Tax Return With Unloop

That’s it for our tax tips for small online businesses! Tax filing might be overwhelming, especially if you’re still growing your ecommerce business. We also hope we have helped you better understand the Canadian income tax system more.

If you prefer someone else to handle your taxes, Unloop is here to help. With Unloop, you can easily and quickly file your taxes anytime, anywhere. There’s also no need to worry about making mistakes—our expert team will review your return and ensure everything is correct before filing. 

We’ll also help you maximize your refund to get the most out of your hard-earning profits. So why wait? 

Book a call with us, and we’ll help you in filing your tax returns!

Like any other area of accounting, managing payroll should mean little to no errors. But depending on several factors, such as the number of employees your business has and tax laws, it's no surprise that it’s difficult. With all the other demands on your time, you may wonder if paying for premium payroll software is worth it. 

In this blog post, we'll look at whether the full services of QuickBooks' top-tier payroll solutions are right for your business. We'll review some of this software's key features and benefits and offer some alternatives to keep your salaried employees happy. Keep reading to learn more!

Pay Your Team Through QuickBooks Software with Payroll

Small and big business owners appreciate the revolutionized cloud-based accounting service that QuickBooks Online provides to millions of ecommerce businesses. But auto-payroll and payroll tax filings takes this accounting software to another level, offering solutions like:

• Automated payroll management and tax deductions
• Health benefits for most states
• 401(k) plans
• Financial reports for paid time off, tax payments and filings, bank transactions, etc
• 24/7 customer support

But like its accounting features, QuickBooks offers different subscription plans for various stages of your business.

QuickBooks Payroll Core

If you have a micro business online with less than ten employees, you can start with QuickBooks’s lowest-tier payroll plan. 

With this plan, you can submit payroll with minimum effort for just $45 a month. But, take note that there are additional fees per employee. It's basic payroll services without any extra bells and whistles. You can pay your staff thanks to its simple features:

• Next-day direct deposit
• Tax filings for federal and state payroll taxes
• $5 additional cost for workers’ comp insurance

QuickBooks Payroll Premium

Many small businesses opt for QuickBooks's second payroll tier plan since it offers a basic payroll system with additional benefits. With just $75 per month, your small business payroll software will be able to handle teams with more than fifty employees. These are some of its features:

• Same-day direct deposit
• AP Intego for workers comp administration
• Mineral Inc. for HR support
• QuickBooks time tracking
• Support resources for setup

QuickBooks Payroll Elite

Scalable online businesses with employees over multiple states need a powerful QuickBooks Online payroll system to handle full-service payroll and automated taxes and forms, from local taxes to health benefits. With its expert setup and a personal HR advisor, you can be sure that you can pay employees fast and easily. Get these, and more:

• Same-day direct deposit
• Project tracking for contractor payments
• Covers tax charges for tax filing errors

QuickBooks Online Payroll Elite Plan in Detail

For small business owners who love QuickBooks Online, it's a no-brainer to subscribe to its highest service options. At $125 a month, you'll experience complete HR management that will file taxes, handle project-based employees and, most importantly, pay stubs and employees on time. But what entices ecommerce businesses to go for this plan are these four specific highlights.

Dedicated HR Support Center

With or without a dedicated HR team for your business, QuickBooks payroll Elite can help you create documents like an employee handbook or job offer letters, thanks to its own HR department. This can be incredibly helpful in ensuring that your employees are properly onboarded and that your HR needs are taken care of. 

Their HR team can help you create a smooth payroll system. This, in turn, can cut costs and save you time. Finally, QuickBooks gives you backend support, with someone always available to help with any HR issues.

Time-Tracking Capability

Online businesses often have employees in remote areas with different time zones and contracts. So normally, they opt for a time tracker like Hubstaff to track their worker's PTO, clock ins and outs, and more. However, QuickBooks payroll doesn’t skip this feature and designed a time tracker, also available through a mobile app.

Instead of downloading a third-party app, you can seamlessly use QuickBooks Time as your employee's digital timesheet. It has geofencing, smart alerts, and reports. This gives you real-time payroll data and avoids any double-entry or missing hours.

Expert Setup

As a business owner, you're responsible for many things, but setting up your QuickBooks shouldn't be one of them. Fortunately, you can spare the headaches of transferring your payroll data to QuickBooks since QuickBooks experts will do it for you.

Tax Penalty Protection

Asides from business taxes, you also need to handle payroll tax for every employee. So it's no surprise that it’s easy to make mistakes in tax filings. QuickBooks Elite can protect you from tax penalties for up to $25,000. Tax penalty protection offers a legal team to resolve any tax filing issues you have.

Alternatives to QuickBooks Payroll

QuickBooks Online's top-tier plan for payroll software is perfect for any online business, big or small. Unfortunately, its pricing and additional cost per employee is a big turn-off for small business owners. You can use these well-established payroll software compatible with QuickBooks if you need more affordable automated tax payments and payroll services.

Gusto

Designed to be user-friendly with a simple interface, Gusto also offers a variety of features that you can customize to meet the needs of your small business. Unlike QuickBooks payroll, this full-service payroll can handle garnishment deductions. The software is affordable, with a monthly subscription that scales to fit your business's needs.

Paychex

Paychex offers integrated solutions, including basic payroll processing, time tracking, and health benefits administration. In addition, Paychex provides PEO (professional employer organization) services that can help businesses with complex HR needs to improve employee productivity and reduce costs.

Rippling

Rippling is another comprehensive and efficient HR, payroll, and IT management platform that provides modular tools you can integrate into your working environment. Once you have set up the online payroll software, you can add as many as 500 business apps as needed to support your specific workforce needs. 

This payroll software offers international payroll solutions, so you can be sure you can pay anyone outside the US. Overall, this payroll tool option is an excellent choice for companies looking for a comprehensive and customizable HR solution.

TimeTrex

You might consider this payroll software if you're on a tight budget with your online business. It features needed payroll features such as:

• Employee self-service
• Time and attendance tracking
• Job costing
• Advanced reporting.

And it integrates with popular payroll services like QuickBooks Online, ADP, and Paychex. Best of all, it's free for businesses with up to 50 employees. So if you're looking for a payroll service that won't break the bank, TimeTrex is worth checking out.

Worth the Investment with Unloop Accounting Services

So, is QuickBooks payroll software’s Elite plan worth it? The Elite plan offers all the features you need to pay your team and manage your taxes. Plus, you can test its free trial for a month. There are also alternatives to QuickBooks payroll if you're looking for a more affordable option.
But do you know who is capable of filing payroll taxes and providing pay and employee health benefits? Unloop. You don't need to decide whether or not QuickBooks Elite is for you. Unloop can give you the best financial advice and solutions for handling your entire HR. Book a call today to drive your business in the right direction.

"Accounting software," "bookkeeping," "tax preparation," and "filing"— just mentioning these terms will make your brain bleed. For any business owner whose forte leans more on selling for profit than doing the crunch work, these terms connote some heavy financial and technical work.

As business professionals, we know it's more fun to see money flood in than it is to count it. But the reality is we all have to start accounting because we all have to pay taxes eventually.

Sole proprietors with profitable ecommerce businesses are burdened the most by income tax preparation. That's because they do it all themselves. So if you're one of them, let Unloop give tips on using your QuickBooks software to file income tax returns correctly.

Set Up Your Tax Form in QuickBooks Accounting Software

1. Click the gear icon at the top right part of your QuickBooks business tax software.

2. A pop-up rectangular box menu will show up. Click the Account and Settings under the Your Company section.

3. In the Company Type section, go to the Tax form drop-down box and select your business structure. In this case, since you're the only small business owner of an ecommerce business, you have to choose Schedule C (Form 1040).

Benefits of Setting up Your Tax Form in QuickBooks Online

A lot of QuickBooks tax return software users miss setting up their forms. They either overlook it or don't see its importance in the accounting aspect of business. But this simple move will make all the difference in the headaches you'll have come tax time.

Here are the benefits of setting up forms as soon as possible.

Streamlined

Transactions are directed to the correct tax form line items. This will help QuickBooks display the sum of all accumulated amounts on the selected tax form within the accounting software.

Accurate

You don't have to make any guesswork once your form is set up. Things like determining where the transaction is supposed to be placed in what line item on the form will be a breeze.

Audit-Friendly

Setting up a tax form and categorizing your transactions leave an audit trail. This makes the auditor's job easier. They can cross-reference your financial statements with the tax form line items and sign them off easily.

A List of Common QuickBooks Accounts for Sole Proprietorship Transaction Attribution

Making sure your tax form is filed correctly means classifying your transactions accordingly. To do that, you'll need familiarity with how each account and detail type in QuickBooks is linked on your Schedule C form. Below are the line items of each account in the QuickBooks tax preparation software and their designated detail type.

Note that these are only regular transactions by any business owner. If you wish to get comprehensive information about the list of accounts, you may consult an accounting professional adept with QuickBooks online.

Common Questions About Tax Preparation Using QuickBooks Online

Discussing tax filing using accounting software is a complicated topic, even for the best small business owners. But just like any diligent businessperson, we have to know about certain things in using accounting software for our business taxes. That way we at least get a sense on how it works.

So here are the common questions business people ask about QuickBooks Online's account categorization and taxes.

Do I have to set up my tax form and map my transaction from the start?

Of course! Setting up your tax form is the only way QuickBooks can help you with future taxation. In addition, your QuickBooks online accounting software will only recognize your business structure through the type of form you choose.

In your case, as a sole business owner, selecting form 1040 lets QuickBooks know what type of business structure you have and help facilitate tax line mapping for you.

Do I have to determine the income tax I should pay manually?

Yes and no. This may seem difficult, especially if tax line mapping is involved. But once you've categorized all the transactions accordingly, QuickBooks will do its part.

The tax software will streamline everything for you to fill out your forms with the right amount and calculate the correct income tax.

Can you change the account type and detail type?

No, you can't. The account type and detail type on QuickBooks are fixed according to specialists. Unfortunately, that means you can't add your own category of account or detail type, and you'll have to work with what's already there.

QuickBooks software makes it so because allowing a user to change or edit an account or detail type would mess up how financial statements are presented. Not only that, but it may also disrupt other reports you generate on the software.

How do I know what account and detail types to choose?

The accounts that will contribute to your Schedule C are mapped above. You may use them to categorize your transactions.

You may consult an accountant for other transactions of a different nature, which may not fit any of the detail types above.

It's essential to bring in an accounting professional to classify your transaction so that you'll have all items properly categorized come tax time. In effect, it should show up perfectly on your Schedule C form.

Can I import my chart of accounts using a spreadsheet?

This concern is common to any seasoned small business owner. They may be using a spreadsheet or different software to do their accounting and bookkeeping and have a well-established chart of accounts.

Yes, they can import their account types and details. Here's how you do it:

1. Go to Settings
2. Go to Import Data
3. Select Chart of Accounts
4. Attach the spreadsheet in .CSV format which must contain the following headers
   1. Detail Type
   2. Account Name
   3. Account Number
   4. Account Type
5. Click next
6. Match the spreadsheet headers to QuickBooks headers
7. Click next
8. Double-check the details of the account name, account type, and detail type
9. Click Import

Is there a way for me to avoid doing this confusing tax stuff?

Definitely! By hiring an accounting team that can handle your tax complexities.

Unloop comprises accounting and bookkeeping professionals who know how to map your transactions for hassle-free tax filing. Here are some broad strokes of what they can do.

Ecommerce Accounting Specialists

The team behind Unloop has years of experience catering to the accounting and taxation needs of ecommerce business owners. In addition, we handle individual sellers from different marketplaces, such as Amazon and Shopify.

Adept with QuickBooks and Xero

This team of accounting pros uses two of the most widely-used accounting software: QuickBooks and Xero. We can track down a problem within the software and fix it such as setting your business's tax form.

If you're not on this accounting software yet, we can also help you migrate for a better accounting and bookkeeping experience.

Partnered with Certified Public Accountants (CPA)

We can go full circle on your taxes. Apart from recording transactions accurately, we can also prepare the financial statements needed come tax filing season.

CPAs also back our team of accounting and bookkeeping professionals. That means Unloop can tap this network of licensed accountants if you want tax filing done.

Convenient Tax Filing With QuickBooks Tax Software and Unloop

As an ecommerce business owner, your thoughts should be about how to generate more revenue. Ideas that involve how to maximize profit, increase sales, and expand your business should be your day-to-day work. But learning accounting software, classifying transactions, selecting the correct tax forms, and filing income tax correctly can get in your way.

While it's good to know about accounting software and income taxes, it's more practical to have professionals handle it. It's faster, more accurate, and you’re sure to be compliant.Talk to us so we can get started on making your QuickBooks software work to your advantage. Dial 877-421-7270 for a consultation, or check out our ecommerce services now.