Whether you are a small business or a large enterprise selling your products online, you need to make sure that you keep your books neat, tidy and up to date. You have to keep in mind that doing a business and having an income means you have to pay taxes within the deadlines.
The outbreak of Covid-19 has given the world a whole new perspective. IT has changed our mind sets and hence our life styles. Previously we would see the shops crowded on the black Friday sales shopping as the Christmas neared. Because of the Covid- 19 pandemic people all over the world are shopping online.
According to a report by internet retailing .net online shopping has increased by 129% across UK and Europe. Increased demand means that the businesses need an efficient systems to sell their product, keep a track of their sales and maintain their books. This is where an e commerce accountant comes in.
There are different platforms which people are using to sell their products online. The most commonly used accounting platforms are:
- Shopify- People are using 'Drop Shipping' where the product is help by a supplier and ships the product to the customer.
- Amazon- People selling online are using Amazon FBA (fulfilment by amazon) where the product gets picked from your home and stored, packed at amazon store.
- E bay
An accountant will help you sort out your data by keeping a track of your sales, inventory, and your profits so you can make informed decisions
In any case if you are running a business you need to register your business. You might want to run the business as a sole trader, partnership or a company.
For each structure there are different types of taxes that you need to pay and a good accountant will advise you what structure suits you best.
Selling online means that while you are touching your local market, you are also attracting and making customers overseas.
While selling your products overseas To EU countries or non EU countries you should be well aware of the tax implications such as VAT and other taxes charged at customs.
Cash flows: With the surge in the demand there is an increase on the cash flows. Dealing with different types of currencies can be a bit tricky and an accountant can take care of that for you.
Distance Selling Rules: If you are selling in EU on amazon / shopify / E bay you need to know and understand the distance selling rules. You will be following the distance selling rules if you sell your product to an EU country from UK and your business is based in the UK. Being based in the UK will mean that even though you supply your products in the EU country but you do not store your products in that country.
Our Shopify accountants will help you manage your accounts and taxes. Our accountants in Croydon have a good experience in dealing with the clients who are using e commerce platforms such as Shopify and amazon to sell their business. If you are a small business or even a large enterprise selling online and you want us to maintain your books and taxes do not hesitate to contact TaxAccoLega at 020 8127 0728