The Interactive Accountants Approach! Whether you are just starting your E-commerce business on Amazon, Shopify or other channel, or you are an experienced E-commerce entrepreneur, you need a partner to help you keep track of all the profits from your company. You also need an expert that understands all the taxes that come with owning an E-commerce business. So, what’s the big deal about accounting for e-commerce and taxes for e-commerce?
When selling your products on a marketplace facilitator (“MPF”), like Amazon or Etsy, these platforms have multiple levels of service that they can offer. These services come at costs, for example fulfilled by Amazon (FBA) start at $2.16 and go up to $138.11 per item (based on size). Amazon and other MPF’s deduct these fees automatically before remitting to you, the seller. Now for sure you can see these costs on your MPF platform, but seeing them integrated into your financial statements, with your costs of goods sold, merchant service fees and other selling and administrative costs, now you have a clear picture into how much money you are really making with the service we provide through the accounting for E-commerce. Interactive Accountants sets you up with a cloud-based accounting software like QuickBooks© or Xero© and the establishes connections to all the MPF’s or your Shopify© site so that all your sales data is integrated with the accounting for e-coommerce. Our firm also performs regular updates to your books, and reconcile your accounts every month, ensuring accuracy and providing you with the financial data you need to make important decisions.
As an E-commerce business, many of the products you sell online are subject to sales tax and one thing is for certain, sales tax law is not simple. It got even more complicated back in June of 2018 when North Dakota vs. Wayfair established the concept of economic nexus. There are new tools that you can use like Avalara and TaxJar to help you become compliant with your sales tax obligations, but these services still require you to make the final determination about an item you are selling being subject to tax in the states you have nexus with. On sales taxes, another matter you must always prepare for is the possibility of an audit. Interactive Accountants is a CPA firm and we have the experience in working with state auditors should your company have to go through a sales tax audit.
As an E-commerce business, you also have to file corporate taxes. This is not something that should be an afterthought when considering an accounting firm to help you with your E-commerce business and filling your taxes for E-commerce. All too many accounting firms aren’t licensed CPA firms, and don’t have the expertise to handle your corporate taxes. At Interactive Accountants, our staff have been preparing corporate tax return for over 25 years. We handle all federal and state filings, and deliver these not only on time, but accurately. Our job isn’t just bookkeeping and plugging in apps, we are always guiding you and your company to be in compliance with all federal and state tax law.
Why Interactive Accountants? It’s really all in our name actually. We INTERACT with our clients on a monthly or quarterly basis to ensure that their financial and tax matters are always up to date. Your team of dedicated accounting professionals are always engaged with you and constantly are keeping things up to date. At least every quarter you will have a meeting with your managers and get the run down on your financials as well as where you stand on taxes. You will be advised on any changes in tax law and as your business grows, your team grows with you. Are one stop shop mentality provides the E-commerce entrepreneur with one accounting firm that can get the job done, no matter the tax or accounting concern.
If you have an E-commerce Business, you need a CPA firm that truly understands what you’re working with, and that firm is Interactive Accountants. So give us a call or schedule a free consultation with our owner Matthew Shiebler, CPA. He’s been practicing accounting for over 25 years now and is a business owner, just like you!