Why accounting is important for an ecommerce business

why its important to have an ecommerce accountant

In order to run a successful and prosperous ecommerce business, you need to keep a tight handle on your finances and always be aware of your financial status. This is important regardless of if you sell on Amazon, Etsy, Ebay or Shopify.

Accounting plays a crucial role in your ecommerce business, and that’s the key to success. In fact, the world of eCommerce has evolved rapidly over the past decade. This has provided you with a number of novel and exciting opportunities to reach and engage with your target market globally.

The importance of ecommerce accounting for ecommerce businesses has never been greater than today.

eCommerce accounting: why is it so crucial?

The importance of accounting cannot be overstated. This is because it is integral to the financial health of any business. It also ensures that other aspects of your business finances are taken care of, including your daily finances, liquidity, legal requirements, and tax obligations.

Accounting for eCommerce helps businesses manage their day-to-day finances, plan for the future, and establish financial predictions that can help secure financing from banks, investors, and lenders.

In addition to that, eCommerce accounting is also critical for other reasons.

Budgeting for ecommerce businesses

It is essential to create a budget that will support your growth plans, ensuring that you always stay on track when it comes to growing your business. An eCommerce accountant can help you develop a budget that meets your needs.

An eCommerce accountant will consider the following expenses when budgeting:

It is common for eCommerce accountants to have extensive experience determining business profitability, which they can use to secure funding for their businesses in the future.

  • Expenses and revenue
  • Wages and salaries of employees
  • Advertising and marketing costs
  • Equipment and materials for the manufacturing process
  • Purchases of inventory
  • Accountants can properly allocate funds once these objectives have been clearly defined.

Determine profitability

The accountant can then make the right decisions regarding streamlining your business processes. This includes utilizing the most appropriate resources to get you where you want to be, as well as establishing the optimum price points.

Measure new strategies

Lastly, an eCommerce accountant can help you measure your strategies using up-to-date financial data, so you can plan a longer-term strategy for your business.

As competition in the eCommerce industry grows, eCommerce accounting will become increasingly significant.

This post may interest you: Do you have to pay VAT on eBay fees?

Get in touch with Your Ecommerce Accountant

In order to keep your eCommerce business on track, it’s crucial to seek the advice of a reputable, experienced eCommerce accountant who will be able to help.

Book your free consultation call with Your Ecommerce Accountant.

Free 30 Minute Consultation

Why not grab a Free 30 Minute Consultation with Ben, he can answer any questions you have about your e-commerce or marketplace business, guide you on tax efficiency and see if we can help you.

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Ben Sztejka ACA

Ben Sztejka ACA

We are a leading e-commerce accounting firm, focused on assisting UK and EU businesses in thriving online. With expertise in Amazon FBA, Shopify, Etsy, and eBay, we provide customised tax compliance and reporting solutions. Our team combines 10 years of experience as ICAEW chartered accountants with 15 years in e-commerce, offering unparalleled support to both e-commerce businesses and accountants.

Ben Sztejka ACA

Ben Sztejka ACA

Head Accountant & Director here at Your Ecommerce Accountant. Specialises in Ecommerce Accounting drawn from his own experience in Ecommerce and selling on marketplaces like eBay, Amazon & ETSY.

Why Not Book A Free 30-Minute Chat with Ben & Ask Any Questions You May Have...

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Ben was incredibly friendly, helpful and honest, and produced the accounts very quickly and at a fair price. He dealt with all the submissions and paperwork for me included in the price.
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Ben and the team and really helpful & knowledgeable. The thought of doing our own accounts is headache educing. Accounts is a part of our business we don't have to worry about and we trust the team to take care of things. Furthermore, they really understand ecommerce accounting and the nuances it involves -do not go to a traditional accountant if you sell online.
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Ben was very prompt with his consultation call, and very friendly. He explained what needs to happem first, and was honest enough to let me know that he won't be needed until the business is up and running and making money. I look forward to working with Ben and his team in the future!
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I had a free consultation and it was so so helpful. The advice was simplified and I came away feeling really sure of what I needed and didn’t need to do in what seems like a minefield. I could not recommend enough! Thank you so much!

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