What is e-commerce accounting?

If you are an e-commerce business owner or e-commerce entrepreneur, it is likely you have heard the term ‘e-commerce accounting’ before. But you may be wondering what makes e-commerce accounting and an e-commerce accountant different from traditional business accounting and accountants?

Accountancy, is defined as the system of recording and summarising business and financial transactions. In some cases, it also includes analysing, verifying, and reporting the results.

For all businesses accounting is crucial and essential for long-term business success. It allows business owners to evaluate business performance, track income and expenditures, ensure compliance, and make informed business decisions.So, what makes e-commerce accounting different? This blog will explain in-depth everything you need to know about e-commerce accounting as an e-commerce business owner, entrepreneur, or if you are considering setting up your own e-commerce store.

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What is e-commerce accounting?

E-commerce accounting is the practice or recording, organising, and managing the financial data and transactions of an e-commerce company. It is sub-category of business accountancy that solely focuses on the unique needs of an e-commerce provider.

The key difference between e-commerce and traditional accounting is that e-commerce accounting involves facing and navigating unique challenges such as managing sales tax overseas and handling multiple currencies.

Additionally, e-commerce business is fast paced. With a high-volume of transactions to record each day, e-commerce accountancy can be complex.

For e-commerce business owners and entrepreneurs, e-commerce accounting is an effective business strategy that can be used to inform business decision making.

What is an e-commerce accountant?

An e-commerce accountant is specialised in e-commerce accountancy. They are experts in e-commerce and have the required knowledge and tools to handle sales tax compliance, returns, multiple currencies, fraud prevention, data management, and a high volume of transactions.

Supporting sellers using a range of e-commerce platforms including Amazon, Shopify, eBay, Big Commerce, and Woo Commerce, e-commerce accountants offer a range of services to enable a business to grow with intelligent accounting and financial insight.

Professional e-commerce accountants, like those at Unicorn Accounting, have the skills and experience to help, support, and expand e-commerce businesses. Whether your e-commerce business needs accounting, Xero programming, app advisory, bookkeeping, tax, or even payroll help, e-commerce accountants will work as your business advisors to achieve greatness.

In summary, e-commerce accountants will take the time to understand your business to offer a bespoke service, save you time, and save you money by ensuring compliance.

What is the difference between an e-commerce accountant and a general accountant?

The difference between an e-commerce accountant and a general accountant is their area of expertise. An e-commerce accountant specialises in providing accounting services to meet the unique needs of e-commerce businesses whereas general accountants cater to a wide range of businesses across a variety of industries.

Specialist e-commerce accountants have up to date knowledge on the latest e-commerce tools and platforms. They understand how each platform works, how transactions are processed, and how to integrate accounting software with the e-commerce platform of your choice.

Often, e-commerce accountants offer specialised services such as tax compliance, inventory management, financial analysis, and app advisory.  While general accountants may offer e-commerce related services, they may not have the depth of knowledge or the right tools to address specific and complex e-commerce needs.

What services do e-commerce accountants offer?

E-commerce accountants offer a wide range of specialist services to help e-commerce business owners overcome unique challenges and streamline their operations.

At Unicorn Accounting, our services include accounting, app advisory, bookkeeping, payroll, tax, and Virtual Finance Director to help online retailers manage their finances effectively and efficiently while remaining compliant with tax laws, rules, and regulations.  Additionally, our services help businesses assess business performance, identify growth opportunities, and accurately forecast cash flow.

Do I need an e-commerce accountant?

Small business accountancy tasks can quickly become complex and a time-consuming task if you are managing it on your own. If you feel like you are struggling to find time to settle your tax and accounting obligations, it may be time to consider outsourcing to an e-commerce accountant.

Seeking support from an e-commerce accountant can help keep your e-commerce business accounts on track. Late submissions, failure to record transactions, and update the balance sheet could have costly repercussions for your business. To ensure nothing but success, speak to a trusted ecommerce accountant today about how they can help.

How do I find the best e-commerce accountant?

Outsourcing to an e-commerce accountant is not an easy task. It is important to ensure the e-commerce accountancy firm you choose is the right fit for your company. It is also important to consider their skills, knowledge, and expertise- not only in accounting but also in cloud software, such as Xero, and e-commerce platforms.

Looking for accreditations and practicing certificates is also a good indication of the reliability and trustworthiness of an e-commerce accountancy firm.

Why choose Unicorn Accounting?

At Unicorn Accounting we are e-commerce accountants who help make your online business a growing success. We offer e-commerce advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.

Our team of 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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