Finding a good eCommerce accountant requires a thorough analysis of a professional’s technical skills as well as their experience in working with online businesses. Accounting for traditional brick and mortar businesses should never be equated with accounting for eCommerce businesses. These two forms of accounting are different. And the different types of businesses involved have their own unique structures, sales models, growth curves, requirements and characteristics. An eCommerce business that wishes to grow sustainably and remain competitive in the marketplace must invest in top-notch accounting services. These services are none other than CPA eCommerce accounting.
Cost of Accounting
Most eCommerce enterprises out there today are in their establishment phase. These means that they are still trying to get their footing. Most eCommerce businesses that are just starting out do not have lots of cash to spend on accounting. Indeed, many online businesses today cannot afford hiring Certified Public Accountants to keep their books in check every month. Now, the big question is – what should these cash-strapped business do? Should they ignore accounting and simply run their businesses without financial prudence and direction? Can they even survive without some form of assistance with accounting. Indeed, the cost-factor in eCommerce accounting cannot be ignored.
Fortunately, for eCommerce startups, CPA eCommerce accounting is quite affordable. The fact that an accountant does not have to physically come to your store everyday does help immensely to reduce the cost of the service. Also, eCommerce accounting is unique by itself. It does not involve many of the processes undertaken in the case of a traditional businesses. Big eCommerce and online stores are the biggest beneficiaries of CPA eCommerce accounting. These businesses cannot afford to invest in sound, accurate and reliable accounting. A good accountant will not only help your online business meet compliance requirements, he or she will also guide you on how to reduce expenses and increase sales. This is where you find the true value of eCommerce accounting.
The Reality of eCommerce Accounting
The biggest mistake online entrepreneurs make today is failing to distinguish eCommerce accounting from traditional accounting. As already mentioned, these are two totally different fields of accounting. The kind of bookkeeping involved varies greatly. The variation comes about due to how online businesses are structured. Most eCommerce stores only require a website to make sales. So, in the cases of an eCommerce business, the bookkeeping tasks are quite minimal. Some of the main bookkeeping tasks that are typically associated with eCommerce enterprises include filing taxes, getting tax exemptions and rebates, monitoring sales and expenses, receipts management and many others. These are pretty crucial accounting tasks for an up and coming online business.
What To Do
Now that you have an idea of your accounting requirements, the next step is finding a professional who can help you do your bookkeeping. A Certified Public Accountant or Chartered Accountant is definitely the best option. This is because they have the necessary academic qualifications, technical skills and experience to handle a wide range of accounting tasks. Your CPA should assist you with filing your taxes. You do not want to get into trouble with the government for failing to file taxes. The cost of hiring a CPA eCommerce accountant is lower than that of hiring a traditional accountant. You can save a lot of money each month by working with a professional who is familiar with the niche industry you are in.
You should always try your best to involve a CPA eCommerce accountant from the onset. This will help reduce bookkeeping backlog and keep your compliance up to date. Proper accounting advice and guidance is critical to keeping your books in check. Choosing to handle the books yourself may be risky especially if you have no prior experience doing this kind of work.
After realizing the importance of hiring an eCommerce accountant, the only thing left is finding one that meets your specific needs and requirements. Here are a few quick pointers that should help.
1. Professional Competence: Do you like them? Are they easy to talk to? Do they pick up your calls when you need them?
2. Certification: Is there CPA or CA license valid and up to date?
3. Accounting Fees: How much do they charge and when will they bill you?
4. Specialization: Do they work with other eCommerce businesses in your sector?
Here at Infinity22 we are specialised eCommerce Accountants helping business owners navigate the international and online environment that eCommerce entails. Click here to register for a free information session. Book Meeting