Ecommerce 

How Crest Accountants can help your ecommerce business.

Ecommerce business is a business model where buyers and sellers exchange goods and services with consumers over the internet. Examples of large online marketplaces are Amazon, Esty, and Facebook marketplace. These sites are for one-off sellers who want to sell their products and services and reach a large, national to worldwide audience. More niche online businesses sell specific items for tailored needs or specialties. These businesses cater to their specific audiences, such as a bride-to-be who may shop for her wedding favours online, or a horse owner searching for saddles on the internet. 

You may be wondering why a business that operates online would need an accountant, when in fact hiring an accountant who is specialised in this industry could be one of the best decisions that you make for your business. Our team specialises in ecommerce businesses with a wealth of knowledge in Amazon accounting and Shopify accounting. We have assisted many businesses in helping them to maximise income streams,  minimise taxes, and motivate them to reach their short and long-term goals. 

Specialised ecommerce accountants for your business.

Setting up and operating an ecommerce business can be very exciting with the potential to attract a large audience, expand and create employment opportunities. However, like any business, there are a lot of moving parts that you must control.  On one hand, you will have marketing and branding, but there is also sourcing, inventory, shipping, customer service and all the ins and outs of running a business.

It is important that you dedicate time to the financial management of your business. No matter how small your business is, or how big you want it to grow, accounting and bookkeeping must be accurate from the start. Talk to our Ecommerce team today to discuss your business, its unique offering, your strategy, and your business and financial goals. 

You may think that you only need an accountant during one time of the year to assist with your ecommerce tax return. However, accountants work all year providing insights that reach far beyond tax returns. For your ecommerce business, our accountants can help you maintain the finances and work behind the scenes to ensure your business operates smoothly and help you to reach your goals. 

Our online business accountants are here to help you understand, maintain, and improve your business.

1. Understanding your ecommerce business

As specialists in this field, we take our time to study the ins and outs and the market trends, and then we analyze your records and end-of-year statements, look for any discrepancies, and we’ll go over all credits and deductions with you as well. 

2. Accounting for ecommerce business cash flow and income tracking

if your business sells physical goods, you will mostly have a higher marginal cost to run your business. It is vital that you don’t lose track of the company’s cash flow. A specialised ecommerce accountant can help to keep your records straight. 

3. Ecommerce business inventory and expenses

Just like your cash flows, you will also need to closely monitor your online shop’s inventory and expenses. In order to ensure that your financial data is complete and accurate, it requires that you record every single expense, from small to big, whether it is from business to business, as well as business to customer. 

4. Tax preparation for online business

Even small mistakes in your online shop’s tax preparation can be damaging and costly with the ATO. Hire a professional to help you stay on top of documents, receipts, and your financial records, and minimise your tax liabilities as well as your risks of penalties. 

5. Cloud Accounting Services

Cloud accounting is accounting software that is set up and accessed through the internet, as opposed to installed on a local server or computer. This means it can be accessed by multiple staff with real time data and there is no need to worry about software updates. At Crest, we are a proud partner of Xero, a leading cloud accounting software service. Xero is user-friendly, packed with features and add-ons, and it can be customised to businesses of any size.  We recommend Xero for our clients, particularly those in ecommerce because you can literally run your business from your smartphone from anywhere in the world. 

The team at Crest Accountants specialises in various industries, and ecommerce and dropshipping businesses are among our focuses. We know that your business has individual needs with a unique focus, and we understand what you need to grow your online business and the many ways we can help.

Understanding why you need an ecommerce accountant.

From the very start and set up of your online business you should have a dedicated ecommerce accountant to lend a professional helping hand to guide you. The internet is a vast space, and when it comes to running your business on the world wide web, you don’t have to go it alone. 

When you decide to set up your online business, get started on the right foot by hiring a specialised ecommerce accountant.  We’re here to assist you with the following:

• We can help implement and train you on an accounting software solution that will suit your business needs. 
• Cashflow forecasting – create and implement a cash flow strategy for your business. 

• Becoming your business partners who are able to help with goal setting, guidance in purchasing a new asset, scaling the business to leasing. Staying up to date and complying with all tax laws and regulations,

Accounting and Compliance (i.e., Tax Returns, Financial Statements, BAS preparation, Payroll and Superannuation Compliance)

Our ecommerce accountants are dedicated to helping our clients set up their businesses and see them through to success. We have the expertise and tailored services for every step along the way. This support extends beyond tax preparation and includes accounting services, and advice on innovative business structures and strategies, as well as future planning and wealth creation.

Crest Accountants specialised accountant for online businesses

• Business startup advice and planning
• Specialist accounting and ecommerce tax compliance services
  For tax compliance, read more on our blog: The ATO is Tightening the Net on the Gig Economy: What Does it Mean for You?
• Cash Flow monitoring and forecasting
• Innovative business structures and strategies
• Xero Commerce and software setup and support
• Financial planning and wealth creation
• Ongoing advice dedicated to the growth of your business

Accounting and cash flow for ecommerce businesses

The most important thing you must do for the success of your ecommerce business is to stay organised and not lose track of where you stand financially. Talk to the team at Crest Accountants. We help ecommerce business owners understand their income streams, and to stay in control of their cash flow, inventory, expenses, reporting, and tax obligations. 

These days it is easier than ever to go digital and to connect your business systems to an online financial platform that can give you real-time data and reports. For example, Shopify can now be integrated with Xero and MYOB, which can save you time and automate your tracking for sales and stock. The same software can help with tax, and accurately track your revenue and expenses.

An e-commerce accountant that is specialised in Amazon seller accounting can assist you with implementing an accounting software solution that integrates with your online store. This will give you access to real-time financial information and make it so much easier to review and forecast your success.

Other helpful tips from our team to help manage cash flow and records are below. 

1. Know your numbers and targets. As a business owner, you must know the figures of your make and break points. 

As an online retailer, you should know the following:

• Your break-even number.
• The amount of revenue you need to generate on a quarterly basis to cover expenses and your target profit margins. 
• Your historic numbers for how your business performed in the past, and what you will do to improve or replicate these results.

If you are not crystal clear on these numbers and your business’ performance, the first thing you should do is arrange a meeting with our team of specialised ecommerce accountants, who can review your figures, help you track progress, and set your goals. 

2. Know your seasons and cycles. Depending on your business, you may have steady sales all year long, or you may rely on seasonal peaks or annual sales. Experienced business owners can recognise the peaks and troughs of their sales cycles. This can help to plan and schedule payments for suppliers or establish a regular calendar for monthly payments. 

3. Set your budget and review your spending. It’s so easy for small expenses to eat away profits. A quick review can show you where you are spending your money every month and why your cash flow might not be at the level you are expecting. There are always small items to cut back or cancel completely, such as subscription payments or stationary orders. 

4. Optimise your best-selling items. Rather than trying to sell a large variety of products, focus on the areas where you are selling the most and generating the most revenue. This will be clear by looking at your past performance and sales results. You can then work with your team to push the best items further out into the market. 

5. Increase your average order value. With every single order, if you can increase the value, even by a small percentage, you’ll maximise your profits over the long run. For example, your online store could suggest similar or complementary products to the items your buyers are purchasing. Or your ‘after sales’ strategy could include ways to build loyalty and bring that customer back to your store.

Whether you are starting up your online business, thinking about how far you can take a hobby or “side hustle”, or if you have extensive experience and an established online business, Crest Accountants can help you. Our team of specialised ecommerce accountants have a long history of helping clients save time and money and reach their business goals.

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