In exciting news, Australia recently opened its doors to Amazon, creating opportunities for hundreds of retailers to expand their online businesses. If you’re a savvy entrepreneur embarking on this new platform to increase your sales, it’s essential to remember to keep your accounting books updated. This will make it easier for you to properly file taxes at the end of the accounting year.
Tax evasion comes with strict punishments in Australia, and it’s always best to avoid these complications. Hiring an Amazon seller accountant will ensure all the records of your income and expenses are in order.
You might be wondering how to find a reliable Amazon seller accountant. It’s no easy feat to find an Amazon seller accountant quickly in Australia, and it pays to be choosey. Amazon Australia has different rules and regulations regarding taxes, and your accountant needs to keep those updated laws in mind. In this case, experience is an absolute priority.
Here are a few things you should consider before hiring an Amazon seller accountant in Australia:
The first question you should ask is if the accountant is familiar with the Amazon accounting laws of Australia. If they don’t know the new tax rules, then don’t hire them. Search for someone who knows the accounting laws for Amazon in Australia by heart.
If you’re simply looking for the person who has the highest accounting qualification, then you likely won’t find the right candidate for you. You may have many highly-qualified accountants with years of experience apply for the role, but if they don’t have a clue about how the online business works then their experience won’t matter. They need to be familiar with how Amazon Australia works to know how to handle your accounts.
Make sure you narrow your candidates down to those who know about Amazon Australia and the online buying and selling process before hiring one.
2. Understand eCommerce and Amazon businesses
Your accountant must have a thorough working knowledge of how online businesses operate, and Amazon in particular. When interviewing an accountant for the job, test their knowledge by asking them how entrepreneurs conduct online businesses in Australia.
Ensure your candidate can give you a run down on the complete registration process with Australian Securities and Investment Commission. They should also have knowledge of foreign businesses selling goods to Australian customers via Amazon. Also, query them about the techniques to get an Australian Registered Body Number.
Grill your prospective accountant with tons of questions about the Amazon business process. Conduct a test to find out whether the candidates are knowledgeable about Amazon businesses and eCommerce in general. You should follow the same approach if you want to hire a reliable Amazon seller accountant for your business.
3. Experience in International tax
In addition to accounting knowledge on Amazon businesses, the accountant should also have experience in international tax. Create a questionnaire regarding various taxes in Australia for Amazon sellers. Start by asking what the GST is for Amazon sellers in Australia. You can then move on to a few questions about the fees and custom duty that a seller needs to keep in mind while selling through Amazon Australia.
When it comes to international tax laws for Amazon sellers, ask the two questions below and tell the candidates to explain the whole process:
• What is the Double Taxation Agreement that a country needs to have with Australia before using Amazon Australia?
• If one country already has a Double Taxation Agreement with Australia, does the company of that country still need to get a “permanent establishment” in Australia? If not, what’s the process to get permanent establishment?
If an accountant can answer these questions, they would be fit for the job of an Amazon seller accountant in Australia. Remember to always test the candidate’s knowledge and experience to find the best person for the job.
Here at Infinity22, we are specialist eCommerce accountants helping online entrepreneurs grow their businesses. CLICK HERE to book a time to discuss your needs.