The Ultimate Guide to Finding Accountants for Your Ecommerce Business

Running an ecommerce business comes with a variety of responsibilities, and finding the right accountant can be crucial for success. The need for specialized accountants in ecommerce arises due to the complexity and unique challenges faced by online businesses. In this comprehensive guide, we delve into the reasons for using specialized accountants, the right time to start using them, the role of ecommerce accountants, and the key considerations for finding the best fit for your ecommerce business.

If you’re ready to find an ecommerce accountant or bookkeeper right now, check out the A2X Directory.

Table of Contents

  • Why use specialized accountants for ecommerce?
  • When should you start using ecommerce accountants?
  • Do I need an ecommerce CPA or accountant—and what’s the difference?
  • What does an ecommerce accountant do for my business?
  • What to look for when finding an accountant for ecommerce

Why use specialized accountants for ecommerce?

When it comes to handling your finances as an ecommerce business owner, you really have three options:

  1. Self-manage your books
  2. Use a traditional accountant
  3. Use a specialist ecommerce accountant

In order to understand why using a specialist ecommerce accountant is the best choice, let’s take a look at all three options and weigh the pros and cons of each:

  1. Self-manage your books

    2. If your business is small or just starting out and relatively uncomplicated, it’s completely fine to self-manage your finances. Not only is it cost-effective, but doing your finances will help you understand your books properly and give you a good line of sight across all areas of the business.

  1. Use a traditional accountant

    2. Hiring traditional accountants for ecommerce might seem like a sensible decision but you need to make sure they understand the ins and outs of an ecommerce business. Ecommerce business owners have more considerations than someone with a brick-and-mortar store, due to all sales going through a sales channel, such as Amazon or Shopify, before revenue hits their bank account.

  1. Use a specialist ecommerce accountant

    2. Because of the complexities mentioned above, ecommerce sellers will have the easiest time using an accountant familiar with and dedicated to ecommerce clients. When you hire an accountant, you’re doing so because they want to save time and gain assurance that their finances are in the best hands possible. Using accountants for ecommerce means you already have a shorthand—they understand your business model and can immediately start digging into your books to get what they need.

    Ready to find an ecommerce accountant? The A2X Directory is a global network of expert accountants ready to help you ➡️ Go to the AX2 Directory.

    When should you start using ecommerce accountants?

    When it comes to deciding when to hire an accountant for your business, several factors come into play. However, if your business is still relatively small, your primary consideration is likely whether you are generating sufficient revenue to justify the investment.

    Typically, once your business begins to generate enough income to become your full-time endeavor—turning over between $20,000-$50,000 per month—it can be a good time to explore hiring an ecommerce accountant. Aside from revenue, there are other reasons that might make you consider hiring an accountant, including needing help with organizing your financial records, managing your sales tax obligations, struggling with accounting software, contemplating expansion, or bringing on investors.

    Do I need an ecommerce CPA or accountant—and what’s the difference?

    Although CPA and accountant are often used interchangeably, there is a difference between the two. While a CPA is always an accountant, an accountant is not always a CPA. A certified public accountant (CPA) is a licensed accountant who has passed the Uniform CPA Exam and fulfilled additional state-specific requirements. They can provide a wide range of accounting services, including tax planning and preparation, auditing, and financial analysis. CPAs must also continue their education throughout their career, meaning they stay up-to-date on changing accounting standards and regulations. An accountant generally has a degree in accounting or a related field and can perform a range of financial tasks, such as bookkeeping, financial statement preparation, and tax compliance.

    What does an ecommerce accountant do for my business?

    Choosing your legal formation, understanding business expenses and deductibles, tax preparation and filing, sales tax compliance, tax advisory, navigating a tax audit, managing payroll, bookkeeping, multi-channel accounting, preparing your business for sale or investment, and providing expert support and advice for ecommerce business owners are just a few of the areas where an ecommerce accountant can add value to your business.

    What to look for when finding an accountant for ecommerce

    Experience and qualifications, use of cloud-based software and apps, focus on growth, knowledge of international sales tax, and preferred payment format are some of the key factors to consider when searching for the best ecommerce accountant for your business.