Did you recently open a Shopify business? Whether you are just getting started or are experiencing rapid growth, bookkeeping for Shopify storefronts can seem overwhelming. This is why countless business owners are gravitating toward ecommerce CPAs that specialize in Shopify accounting in Chicago, IL.
In this article, we’ll cover the reasons why you should hire a Shopify accountant. If obtaining ecommerce accounting services seems right for your business, reach out to one of our Shopify CPAs right away to schedule your free consultation.
Industry Expertise
Ecommerce businesses aren’t like the regular mom-and-pop shop. In fact, the regulations and accounting best practices can significantly differ. When you work with a Shopify CPA who understands the complexities of ecommerce accounting, you have access to tailored expertise and accurate accounting records.
General accountants might not know that your sales need to be trued up for Shopify fees or suggest the best tax planning strategies for your ecommerce business. Partnering with an ecommerce CPA who has relevant industry experience is critical for the long-term growth and sustainability of your Shopify business.
Accurate Sales Tax Filings
Countless Shopify business owners are left questioning, “Should I charge tax on Shopify?” This isn’t a clear-cut answer, as sales tax nexus and exempt goods factor in. Working with a Shopify accountant who can track your sales to each state, file accurate sales tax returns, and minimize your sales tax liability is essential.
Not only can you ensure compliance with state agencies, but you can confidently tackle Shopify state sales tax remittances without overpaying. Applying a band-aid solution and collecting sales tax on every purchase is illegal, resulting in hefty fines and penalties. Avoiding noncompliance relies on having a Shopify accountant well-versed in Shopify sales tax collection.
Up-To-Date Accounting Records
Up-to-date accounting records not only make tax time a breeze, but they also can help you uncover areas of improvement. Maybe you find that you are overpaying on credit card charges or that you have unused subscriptions that you can cancel to increase profitability. These insights would not be available without up-to-date accounting records.
Having access to real-time accounting records is important, but accuracy carries more weight. There are numerous adjustments that are required when completing Shopify accounting in Chicago, IL. For one, revenue needs to match gross revenue from your sales, not the net amount deposited into your bank account.
Other adjustments that can influence your profitability include depreciation, distinguishing between revenue and chargebacks, ensuring completeness in your transactions, and properly categorizing transactions. These factors might be outside of your area of expertise, which is why bringing on a Shopify accountant is beneficial.
More Informed Decisions
How will you know which products are performing the best or where you need to make adjustments if you are months behind on your Shopify bookkeeping? Without expert help, it’s easy to fall behind on state sales tax registrations, account reconciliations, budgeting, and tax planning.
By enlisting the help of a Shopify CPA, you have an expert to guide you on which strategies are best to help you reach your financial and operational goals. Maybe you are struggling to determine the cost of adding a new product line or how much you need to increase prices to achieve your desired profit. Making the right business decisions with an expert on your side can propel your business to success.
Save Money and Time
Your time is valuable. Neglecting to bring on a Shopify accountant in Chicago, IL adds to your growing to-do list. Do you have a few hours each week to categorize transactions and track sales to each state? How about extra time around month-end to complete bank reconciliations and prepare sales tax returns? Your time might be better spent in other areas of your business, such as exploring new product lines.
The upfront cost of bringing on a Shopify CPA is minimal compared to the value you receive in return. For example, a Shopify accountant can consult you on major business decisions, maximize compliance with regulatory agencies, and prepare your books for timely tax return filings. Each of these tasks can come with monetary consequences if not handled properly.
Summary
Does it sound like a Shopify CPA is right for your business? If so, reach out to one of our team members right away. We can shift the burden of accounting off your shoulders, giving you more time to handle other important tasks in your business.
Our team is comprised of Shopify accounting experts with years of industry experience in Chicago, IL. From general bookkeeping for Shopify to tailored advice on growth strategies, we have you covered. Reach out today to learn more.