For many business owners, communication with accountants is limited to the essentials. We believe in a more free-flowing and friendly line of communications with our e-commerce entrepreneurs, but there are still some changes that you should mention to your accountant straight away.
E-commerce entrepreneurs should have regular contact with an e-commerce accountant to help scale their business and help them succeed. Regular catch-up video calls and emails are a great way to make sure you are doing all you can to grow your e-commerce business. Here’s a handy list to make sure you never find yourself wondering, “should I notify my accountant?”.
General Changes
- When changing your entity structure – if you are planning on bringing in a partner, removing a partner, or becoming a limited company, be sure to discuss the implications for your business with your accountant first and notify them as soon as the change is made.
- When opening/changing bank account – if you are switching account or opening a new debit or credit account, make sure your accountant is in the loop. They may even be able to make a recommendation if you ask them before you commit.
- When taking out a loan – you should never take out a business loan without discussing it with your accountant. There may be additional ways to free up capital, defer payments or another creative solution. If you do take out a loan, alert your accountant immediately as it can have dramatic effects on your cash flow forecast.
- When you believe you will exceed the VAT threshold – it is a legal requirement to sign up for VAT once you exceed the VAT threshold or when you realise you are going to. If you think your e-commerce business will exceed the threshold soon, discuss it with your accountant to see if they agree with your assessment.
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E-commerce Changes
- When you are looking to sell in a new country – there will be VAT implications depending on the country you are selling into, so you should always notify your accountant before you start selling there.
- When you are looking to bring in goods from a new country – the dust is still settling in a post-Brexit world with many areas not having clear guidance. There have been several changes to import VAT so discuss your path before you commit.
- When storing goods in a new country – even storing goods in a new country can have major ramifications for an e-commerce business. It may make you liable for VAT in that country so discuss it with your accountant ahead of time.
- When changing your marketplace – whether you are adding in a new marketplace or removing one, they all have very specific guidance on how to deal with their charges and they all feed into your accounting software in different ways.
As a general rule of thumb, if you ever get as far as “should I notify my accountant…” as an e-commerce entrepreneur, the answer is likely yes. With so many regulations and international requirements, it is better to be safe than sorry to avoid a costly misstep.
What information should I give my accountant for Self Assessment?
If you choose to use an accountant to assist you with your Self-Assessment, you may be required to share additional information with them. While outsourcing to an accountant can save you time and prevent you from submitting a shabby tax return, you’ll still need to provide your accountant with relevant information.
Here is a list of the things you will need to send in to ensure your chosen accountant can get your Self-Assessment tax return submitted in a timely manner:
- Employment information
- Pensions
- Self-employment and investment income
- Capital transactions
- Your accountant may also need additional information from you when submitting your return
Next Steps
If the idea of regular conversation with your accountant makes you feel uneasy, you’re not with the right firm. We are a team of specialist e-commerce accountants with a proven track record of great support and help to grow your business. Get in touch today to find out more.
Why choose Unicorn Accounting?
Ensure you keep on top of your finances and tax obligations by outsourcing to an accountant. This means that you don’t need to worry about your end of year accounts, payroll, or bookkeeping requirements.
At Unicorn Accounting we are e-commerce accountants who help make your online business a growing success. We offer e-commerce accounting advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.
Our team of accountants and Xero-certified advisors have experience working with both small start-ups and family-run online stores to large-scale, international retail and e-commerce brands.
If you’ve got an online store, we have the best solution for you. Providing you with a financial arm to your business through our sector experience, and skills with innovative technologies.
To see how we can help you maximise the scalability of your e-commerce brand all year round, get in touch with Unicorn Accounting today. Or click here to get a free quote.
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