Unless you have a background in accounting, it’s always best to have an expert oversee your financials and accounting system. After all, you already most likely have an endless to-do list, from reordering inventory and managing employees to finding new growth strategies and products to sell.
Accounting might be at the tail-end of your priority list, but this isn’t always the best option. The accounting of your business gives you the ability to make informed decisions, improve profitability, and save on taxes. In this article, we’ll cover the role of an accountant in your organization and how to choose the right professional.
Why are Accountants Important?
Accountants are indispensable in all businesses, especially in the ecommerce realm. Ecommerce accounting services are designed to infuse accuracy and real-time reporting into your accounting system. This includes reconciling bank accounts, categorizing transactions, producing internal financial reports, and making ecommerce adjustments.
A CPA for Amazon sellers or a Shopify CPA can make the necessary adjustments to align your internal reporting with platform reports. Many ecommerce platforms deduct fees, sales tax, and refunds from your gross revenue. This results in a net amount being deposited into your bank account. Revenue needs to be adjusted to properly display these items and maintain compliance with accounting and tax regulations.
Not to mention that preparing year-end reports can be complex. If you use inaccurate reports to submit your tax returns, you might be met with fines and penalties from federal and state agencies. An accountant makes sure your business is compliant and maximizes tax saving opportunities.
How to Choose the Right Accountant
Choosing the right accountant is an important decision. For example, some accountants specialize in Shopify accounting while others are Amazon accountants. Nevertheless, some accountants will take on all ecommerce sellers, regardless of which platforms they sell on. Here are some factors to consider before hiring an accountant:
- Experience – Your accountant should have experience working with small businesses and the ecommerce realm. If you are looking for an accountant to file your taxes in addition to general bookkeeping, be sure they are comfortable and experienced in taxation.
- Credentials – Accountants usually have formal training. This might be a four-year degree or a certification, like a CPA. Ecommerce CPAs have gone through a rigorous testing process and are seen as experts in the field of accounting.
- Audit – Should you be the subject of an audit, you want to choose an accountant that can help you navigate the document requests and next steps. Look for someone who has been through the audit process before.
- Software Capabilities – If your business utilizes a specific accounting software program, be sure that your prospective accountant has the necessary experience. Furthermore, a good Shopify accountant or Amazon FBA CPA will advise you on which software programs will support your business the best.
- Strong Relationship – Talk to other business owners about which accountant they use. Personal referrals can point you in the right direction and save you hours of searching through Google. Remember, you’re looking for an accountant who’s in it for the long haul. You don’t want to be switching accountants year after year.
- Taxes – Not all accountants will offer tax services in conjunction with general bookkeeping services. If you’re looking for an all-in-one package deal, consider locating an accountant with the necessary tax background. Not only can they assist you in filing annual returns, but they can also be your trusted advisor throughout the year, helping you strategize how to save money on your tax bill.
These are a few of the factors to consider when looking for your next accountant. The industry you operate in plays a crucial role in which professional is best. For example, if you sell specifically on Amazon, look for an accountant for Amazon sellers.
Selecting the Right Professional
A great starting point is your personal network. Reach out to your friends, family members, mentors, and other business owners about who they recommend. This can help you narrow down your search. However, you will still need to ‘interview’ each accountant to find the one that fits your organization the best.
Keep the above points in mind to get a full picture of what you can expect when working with the prospective professional. Be sure you have a list of your key pain points, such as Shopify sales tax collection or general bookkeeping for your Amazon storefront. Being specific about your needs will help you select the best fit.
The good news is that your team at BUSINESS has you covered. We are ecommerce accounting experts ready to alleviate the stress of accounting in your business. Reach out today to schedule your free consultation.
