eCommerce accounting tips are always valuable, but never more so than when you’re first starting out.
These are our top five tips for new traders in the world of eCommerce:
What eCommerce accounting tips should I be thinking about as a new trader?
1) Storing invoices
You’ll need to keep an accurate record of all invoices and sales for tax reporting purposes. You might also need to call on these records if your business is subject to a tax audit.
2) Logging expenses
For the same reasons, you should also store documents related to any expenses you might accrue. These could include business-related travel/accommodation, events, bank charges/interest, insurance and more.
3) Understanding import taxes
If you’re importing products from overseas, you need to know about import VAT/duty requirements. If you’re selling abroad, you should also research these factors for your target markets.
4) Planning for growth
Your eCommerce venture could grow fast, so you need a plan to scale up your operations. Focus on key resources, such as warehouse capacity for storing stock or a new computer system for processing orders.
5) Utilising accountancy software
These include cash-flow management, invoice/payment reminder dispatch, expenses logging, tax reporting and much more.
Keep these handy eCommerce accounting tips in mind to ensure your new venture starts off on the right foot.
Find out how 3 Wise Bears can help you get your eCommerce venture off the ground.