Ecommеrcе is competitive and fast developing. There are always things to do, from website updates to marketing campaigns and merchandise and logistics. However, to ensure the success of your online business venture, finance should come first.
This can be done by identifying a seasoned accountant familiar with accounting for ecommerce who could guide you in the financial demands of your online business.
The Contrast Between Traditional Accountants and Ecommerce Accountants.
The field of accounting for e-commerce is a complex one that requires specialised accountants knowledgeable in the laws. Professional ecommerce accountants can assist business owners in connecting their online businesses to accounting software, advise on intricate VAT rules concerning sales both within as well outside the UK, and have all returns filed.
Furthermore, accountants in London will handle all your basic accounting requirements, such as payroll, fees, debt, corporation tax, and bookkeeping.
Alternatively, traditional accountants are unlikely to be conversant with sales platforms and, hence, may find it challenging to offer integration support. They may also be unaware of the latest VAT regulations in which case you have to try and manage it on your own.
What Characteristics Should You Look for In an E-Commerce Accountant?
With regard to accounting for ecommerce, you must look for the following characteristics in the accountant.
First of all, it is a common and simple requirement for companies not only in London but across the globe to comply with regulations, so accountants for ecommerce must be well-trained. A chartered accountant is an individual who has been accredited, with years of industry training and is a member of some professional body. These facts will be available on their website free of charge.
Visit their website and explore the social media platforms to determine if they are reliable. Also, understand things such as – if they provide you with prudent advice and tips that will benefit your business
2. Ecommerce Experience
Every business owner needs accountants who can comprehend their business. However when in terms of ecommerce, hiring an accountant who has first-hand experience in accounting for ecommerce ‘is more important. An accountant having experience working with ecommerce businesses is familiar with the unique needs of ecommerce accounting, the sector, and the challenges business owners encounter.
Accountants with first-hand experience will probably be working with many other ecommerce customers and online sellers and are able to assist with sector-specific requirements, such as:
- Payment gateways & payment service providers
- Supporting tracking of inventory, thus guaranteeing precise reporting of profit and loss
- Saving money by being tax-efficient
- Managing cash flow, considering hidden costs
There are many different ways to check for accountants in London who have ecommerce experience:
- Google reviews: is there a mention of ecommerce experience by any ecommerce sellers?
- Website: Is there a specific ecommerce landing page, such as testimonials from their ecommerce business clients?
- Ask them directly: You can discuss with the accountants and ask them about different ecommerce businesses they have catered to and understand their expertise level.
3. Integration Knowledge
With sales taking place throughout the day, the foundational processes must be automated and integrated. A good accountant, specialisng in accounting for ecommerce, uses accounting software to integrate your business with sales platforms.
Integration is essential because
- Give business owners the latest view of where the business is at and assist in making decisions founded on this information.
- Hours of manual data entry are saved.
- Minimises errors related to manual processing.
- Sales are shown in real time.
- Tracks related selling costs, such as platform fees, in real time.
The right integration depends on the business, the platform that sales are made from, and the accounting software that the business owner is using. Good accountants in London will advise on the best integration alternatives to meet your business requirements.
4. Continuous learning
The ecommerce domain is ever-changing. Hence, accountants in London match the pace. They should have a continuous learning and growth mindset. Essentially, they must have a desire for knowledge and and mindset that learning is never over.
This mindset implies they must be informed of all the up-to-date industry progress and bring pertinent, timely, and industry-specific data. In other words, the ecommerce accountant must be proactive with advice on marketing spend, measure customer acquisition cost and break-even points, and manage cash flow.
An accountant, an expert in accounting for ecommerce, needs to provide industry-specific expertise, such as integrating the online store with the accounting platform, in addition to cash flow management, expert VAT advice, and inventory tracking. They must offer all that a traditional accountant offers, such as bookkeeping, tax returns, and year-end accounts.