Ask the Accounting Community

Starting an e-commerce business is easy. Pretty much anyone can create an online store using popular e-commerce solutions such as Shopify or Magento. Unfortunately, however, while setting up a store is not difficult, it is easy to forget that you are running a business. Even though you may be working from home initially, dispatching goods from your spare room and fielding customer enquiries on your smartphone, the back office demands of running a small business still apply.

The government will expect you to submit tax returns and you will have to maintain accounts. Many e-commerce entrepreneurs don’t have a clue about financial matters, so they soon run into problems. Whether you are interested in selling cutting edge fashion accessories, artisan jewelry, pet supplies, or handguns for under 200 bucks, the internet provides access to the global marketplace.

Accountants have trained for several years to earn their qualifications. They know their subject matter and are the best person to advise you on all matters related to taxation and finance. Unless you have a degree in accounting, can you honestly say you know all there is to know about tax legislation? Do you feel confident enough to produce a set of accounts at year-end?  

Whilst bookkeeping software does make life easier, products like Sage or Turbocash are no substitute for the services of a good accountant.

It always takes longer to do something when you are thrashing around in the dark with no clue about where to start. An accountant might take a day to complete your accounts whereas it would take you weeks to collate the information, figure out the mistakes, and do the math.

This is the time that would be better spent on marketing, buying new stock, and tackling other aspects of your business. Just because you are an entrepreneur, it doesn’t mean you have to wear all the hats in your business. Outsourcing tasks you can’t do is not just sensible – it is a vital part of business success.

The penalties for incorrectly filled in tax returns or missing submission deadlines are severe. Accountants can also help keep your cash flow under control, so you won’t end up in a financial black hole at a critical moment.

Part of an accountant’s job is to give you advice. If you are thinking of expanding the business, talk to your accountant about finance options. They will be able to help you take your e-commerce business to the next level.

Would you rather spend umpteen sleepless nights worrying about tax returns and cash flow, or would you prefer to hand everything over to a qualified accountant and let them worry about doing the math? Using an accountant to take care of all matters finance-related is a no-brainer for anyone without a background in accounting.

Ask for personal recommendations from other small business owners if you need an accountant you can trust.