Why you need an accountant for your Amazon FBA business

Accounting for Amazon Sellers
For most businesses, the only thought they give to Accounting is a few weeks before their annual accounts are due. Then, they get onto their accountant, rush to send over their sales and purchases, and complete them just in time.

For most businesses, the only thought they give to Accounting is a few weeks before their annual accounts are due. Then, they get onto their accountant, rush to send over their sales and purchases, and complete them just in time.

Whilst this does work, it piles on the pressure for you as a business owner. It means you don’t have the time to check your accounts properly; you don’t have a process in place to ensure you are claiming every expense you can against the business or ensuring the VAT rates are correct against each item you sell, and, in some cases, you are paying VAT for items sold internationally when you shouldn’t be.

All of the above means that you could be wasting money and hampering your Amazon business’s growth and profits!

As e-commerce accountants, we work with Amazon sellers every day and understand the specific needs of this type of business. We are expert Amazon seller accountants and provide leading accountancy services for e-commerce businesses. It’s what we do and specialise in.

Because of our Amazon and eCommerce expertise, we can help you with all aspects of your finances, from Amazon bookkeeping and business tax returns to financial planning and advice. We are one of the leading accounting firms focusing on Amazon accounting services, so we can ensure you are compliant with all the relevant regulations – We can also advise you on expanding your Amazon business internationally and the regulations you need to know to do this.

The benefits of working with an accountant for your Amazon FBA business

There are many benefits to working with an accountant for your Amazon FBA business. Firstly, they can help you save time by taking care of all your bookkeeping and tax return requirements. This frees up your time so that you can focus on the main thing: selling your products!

Secondly, an accountant can provide valuable financial advice and planning. They can help you ensure that your business is on track to meet its financial goals. This is done by using cloud-based accounting software to ensure that your Amazon FBA accounting is correct and eliminates human error. If you use a specialist like us, we also have specialist software that we have developed in-house; this connects to Amazon and pulls the sales data in a way that is easier to understand, it correctly accounts for your fees and sales, and this allows your data to be totally accurate and, after an initial, manual report, eliminates the need for you to spend time going into seller central and manually downloading and sending reports.

Lastly, they can help you with compliance. As specialists in Amazon accounting requirements, we can make sure you are meeting all the relevant regulations – this is even more pertinent when you want to start selling outside of the UK, whether that be Europe, the USA or other parts of the world, we can advise you of the best way to go about setting this up to ensure you stay compliment with all international regulations, IOSS, VAT, GST and more.

If you are currently sole trader selling on Amazon and wonder if a Limited Company structure would be better then we can help you work out if being a sole trader or limited company will work best for you on Amazon

The specific services an accountant can offer Amazon sellers

The specific services an accountant can offer Amazon sellers include the following:

  • Bookkeeping
  • Year-end accounts preparation and submission
  • Tax return preparation
  • Financial advice and planning
  • VAT & Tax Advice
  • Compliance for general selling
  • IOSS and International Sales

So what do each of these things actually mean:

Bookkeeping

Bookkeeping is the process of recording all financial transactions of a business, including sales, purchases, and payments, in an organised manner. It’s like keeping a detailed diary of all money coming in and going out of the business.

Year-end accounts preparation and submission

Year-end accounts preparation and submission involve organising and finalising all financial records for a business at the end of its financial year. This process includes calculating profits or losses, and submitting these details to the relevant authorities, such as HM Revenue & Customs, usually for tax purposes. It’s like wrapping up the business’s financial story for the year and sharing it with the government.

We can make sure you fulfil your key responsibilities and monitor your filing dates. We prepare your Amazon business accounts with accounting software and accurately submit your annual accounts to the company’s house. For your tax return, we will make sure that you are claiming all the relevant deductions and allowances, and we will also deal with any issues that arise with HMRC.

We also help sole traders submit their accounts and self-assessment tax returns every tax year, on time, avoiding hassle and penalties.

Tax return preparation

Tax return preparation involves gathering all information about your income and expenses over the tax year and completing a document, typically for the tax authorities, to calculate how much tax you owe or are due back. It’s like summarising your financial activities to work out your tax responsibilities.

Financial advice and planning

Financial advice and planning involve analysing your current financial situation, understanding your future goals, and creating a strategy to manage your finances effectively to meet those goals. It’s like mapping out a financial journey to ensure you reach your desired destination safely and efficiently.

Financial advice and planning is essential for any business, and we can help you set and achieve your financial goals. We can also provide advice on cash flow management, budgeting, and investment planning.

VAT & Tax Advice

VAT and tax advice involves providing guidance on Value Added Tax (VAT) and other tax obligations, helping you understand how much tax you should be paying or reclaiming, and offering strategies to manage taxes efficiently. It’s like helping you navigate the rules and strategies around taxes to ensure you are compliant and optimising your payments. We can also help you register for VAT if needed.

We can help Amazon business owners with VAT registration and then help businesses who are already VAT registered to compile and submit quarterly VAT returns. As experienced accountants who understand Amazon seller accounting we can prepare your VAT return in the most tax efficient way, saving taxes and help avoiding tax investigations.

Compliance for General Selling

Compliance for general online e-commerce selling involves following legal, tax, and financial regulations specific to selling goods and services online. This includes registering for VAT if applicable, understanding import/export laws, adhering to consumer rights, and maintaining proper financial records. It’s like following a set of rules to ensure your online shop operates legally and smoothly.

As specialists in Amazon accounting requirements, we are up-to-date with all the latest regulations. We can make sure you are compliant with everything from VAT to corporation tax.

IOSS and International Sales

IOSS (Import One Stop Shop) relates to the VAT treatment for cross-border sales of low-value goods to consumers in the EU. By registering for IOSS, sellers can charge, collect, and remit VAT for these sales at the point of purchase, simplifying the process. International sales refer to selling goods or services beyond your home country, which involves understanding and complying with different tax regulations, customs duties, and local laws. It’s like adapting your online shop to meet the rules and customer needs in different countries.

Registered or Virtual Office & Company Setup

We provide limited Company setup and registered office services. This means that we will set your company up with companies house and can provide a registered office so your address is hidden and looks professional – this service keeps your personal home address off of the companies house website which is useful if you either don’t want your address to be public knowledge or can’t run a business from home i.e. you rent your house or there are regulations on running a business from home (sometimes stated on new build developments).

If you want to know more about the advantages of limited companies vs sole traders and how they help manage risks and liabilities when book a free consultation and we can run through this with you, click here to book a free consultation.

Why compliance is important for Amazon sellers

Compliance is important for any business, but it is especially important for Amazon sellers. This is because Amazon has very strict rules and regulations that must be followed. If you are not compliant, you could face hefty fines or even have your account suspended, a suspended account generally means the end of an Amazon business as the hassle and complexities of getting an Amazon account reinstated can be a long and drawn out process.

As specialists in Amazon accounting requirements, we can ensure you comply with all the relevant regulations. We can also deal with any issues that arise with HMRC – this will minimise the risk of account suspension.

Managing your Cash flow and inventory

As an Amazon FBA seller, you need to ensure you keep reinvesting your cash, so it’s key to know your cash flow. The most basic way you can plan how much you need to reinvest in inventory is by looking at your sales data and, at the very least, buying the volume of stock you have sold on your Amazon seller account.

The bad news is that you will need to reinvest more than you sold to ensure that your Amazon business continues to grow. While you may not have more cash, you will have more wealth, albeit in the form of stock.

You can make this even easier for yourself by using inventory apps and other software combinations to ensure that your online store is always adequately stocked.

You also want to keep an eye on your Amazon settlements and ensure that the payments received will cover your VAT bill and inventory requirements.

By understanding your stock, Amazon reports, and payments received, you will be able to make informed decisions and maintain a competitive advantage on the Amazon marketplace.

As accountants for Amazon sellers we will be able to help you understand your cash flow and find hidden costs. Here at Your Ecommerce Accountant, we’re specialist amazon accountants who understand all this and can advise you accordingly.

How we can help your Amazon seller business succeed

We can help your Amazon seller business succeed in many ways. First, we can take care of all your bookkeeping and tax return requirements, freeing up your time to focus on other aspects of your business. Second, we can provide valuable financial advice and planning, helping you ensure that your business is on track to meet its financial goals. Finally, we can help you with compliance.

Book a Free Accounting Consultation

We help many e-commerce businesses manage their cash flow by giving them insight into their business so they know how much to invest in inventory.

While we focus on tax efficiency, we know saving time is a big factor. We use powerful accounting software and know exactly what we need to implement for Amazon FBA sellers.

Recommended article: How much is my Amazon Business worth?

Specialist Amazon accountant for your ecommerce business

In conclusion, partnering with an accountant for your Amazon FBA business brings numerous advantages, including saving time on bookkeeping and tax returns, gaining valuable financial advice and planning, and ensuring compliance with relevant regulations. As specialists in Amazon accounting, we are well-equipped to ensure your business meets all necessary requirements. If you’re interested in learning how we can support your Amazon seller business, we invite you to book a free, 30-minute consultation call with us. We look forward to discussing your specific needs and exploring how we can assist you.

Book a free consultation call here: Book A Call

Recommended articles:

Free 30 Minute Consultation

Why not grab a Free 30 Minute Consultation with one of our Accountants, they 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.

You Have Nothing to Lose & A Lot to Gain

Free 30 Minute Consultation

Why not grab a Free 30 Minute Consultation with an Accountant, they 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.

You Have Nothing to Lose & A Lot to Gain
Share the Post:

Recent Posts

Book your Free Consultation or Quote for services

Want to speak to an e-commerce accountant for free, get 30 minutes of expert advice on accounting for your e-commerce business.
Not have any questions? If you just want a quote then book a meeting, we can discuss what you need and give you a quote.

Get more information on becoming an affiliate.

Please get in touch

Wait! Before you go...

We don’t want you to miss out on your FREE consultation with one of our team.
Ask any accounting questions you might have. We’re usually about to give you some quick fixes or answer those questions that have been bugging you.
 
We’ve even advised some Amazon sellers on how to save Thousands of pounds on their Amazon fees.