Accounting for e-commerce: How to choose the perfect Accounting Firm

Unique accounting challenges for online stores

Online stores face numerous specific accounting challenges:

• Multi-channel Sales: Selling on various platforms such as Amazon, eBay, Allegro, or their own online store necessitates the integration of data from multiple sources, considering the country of sale and shipment.
• International VAT Settlements: Operating in foreign markets involves the obligation to settle VAT according to the regulations in different countries and use EU procedures such as VAT OSS, Intra-Community Supply of Goods, or Intra-Community Acquisition of Goods.
• High Volume of Transactions: The number of transactions conducted by online stores can be enormous, leading to a significant number of invoices, requiring effective management of documentation and reporting.
• Complex Tax Regulations: The tax system in various countries is complex and dynamic, making it difficult to keep track of changes and ensure compliance with regulations. Therefore, it is essential to use tools that automate the creation of sales documents and their settlements and have the support of tax advisors.

Differences between traditional accounting and e-commerce accounting

Traditional accounting and e-commerce accounting differ in several respects:

• Scope of Services: Traditional accounting firms often focus on local tax regulations and standard accounting processes. In e-commerce, understanding the specifics of international online sales, knowledge of VAT regulations in different countries, and experience in international transactions are key.
• Technology: E-commerce requires advanced tools to automate accounting processes, allowing for fast and accurate processing of large volumes of data. Accounting firms specializing in e-commerce should have IT teams and integration systems.
• System Integration: Online stores use numerous sales platforms and payment systems, which must be integrated with the accounting system. This also includes the ability to retrieve data from platforms like Amazon to gather information on cross-border movements of goods.
• Expert Support: Proper VAT settlement and compliance with e-commerce accounting regulations require specialized knowledge. An accounting firm specializing in e-commerce can provide not only tools but also expert support during the settlement process, tax audits, or reporting.
• Data Security: In e-commerce, financial data is particularly sensitive. Therefore, it is important that the accounting firm has appropriate security measures and adheres to the highest data security standards.
• Service Costs: When choosing an accounting firm to handle e-commerce, it is essential to compare the range of services and service costs. The accounting firm handling online stores should be familiar with the specifics of e-commerce and tailor the offer to the high volume of transactions and enable integration with an online accounting system.

To sum up, running an e-commerce business involves unique accounting challenges. Therefore, it is worth using the services of an accounting firm specializing in e-commerce that offers comprehensive solutions for tax settlements for online sellers.

Let's discuss accounting for your e-commerce

Contact us and tell us what the problem is, and our specialists will take care of the rest!

Schedule a consultation

Scope of accounting services for e-commerce

Accounting for e-commerce requires specialized knowledge and experience to effectively manage the finances of an online store. Full accounting support should include a range of services tailored to the specifics of online activities.

What should full accounting support for an online store include?

Full accounting support for an online store should include the following services:

• Bookkeeping and VAT Registers: Recording all income and expenses to provide an accurate financial picture of the company and calculate taxes.
• VAT Declarations: Regular preparation and submission of VAT declarations to meet all legal requirements.
• Commercial Books: Maintaining detailed commercial books documenting all financial operations of the company.
• VAT Registration Abroad: Assistance with VAT registration in other countries, which is crucial for sellers operating internationally.
• VAT Settlements in Different Countries: Not only VAT registration in various countries but also all issues related to its settlement and filing declarations in foreign offices.
• Financial Reporting: Preparing regular financial reports that help monitor and analyze business performance and make appropriate business decisions.
• Tax Advisory for E-commerce: Tax advisory services, including tax optimization, to minimize tax burdens and meet all legal requirements.
• Integration with E-commerce Platforms: Automatic connection of sales data with e-commerce platforms, streamlining the accounting process and minimizing the risk of errors.
• Accounting Audit: Conducting a financial audit to verify compliance with legal regulations and the correctness and reliability of financial data.
• Expert Support: Access to specialist knowledge and information on accounting and tax issues concerning e-commerce so that the store owner has full control over their finances.
• Technical Support: Providing professional technical support for using tools such as BaseLinker, ERP systems, and Taxology applications.
• Data Security: Ensuring customer data security by applying the latest data protection and security standards.
• Flexibility and Scalability: Adapting solutions to the individual needs of the business and the possibility of easy expansion in case of scaling the business.
• Legal Updates: Monitoring changes in tax regulations and regularly updating the system to ensure compliance with current regulations.
• Multilingual Support: The ability to serve customers in different languages, facilitating communication and collaboration in the international market.

Why is choosing the right accounting firm crucial?

VAT settlements, Amazon self-billing, FBA, VAT OSS, WDT, WNT, service imports – these terms are commonplace for many entrepreneurs operating in the e-commerce sector. Choosing the right accounting firm with experience and specialization in handling online stores is crucial for the success of your business.

How does experience in e-commerce affect the quality of accounting services?

Accounting for e-commerce requires unique skills and knowledge. Traditional accounting firms may not be familiar with the specific challenges of this industry. Experience in servicing online stores translates into:

• Better Understanding of VAT Settlements: A specialized accounting firm knows all the nuances related to VAT settlements in e-commerce, including VAT OSS and specific rules concerning international sales.
• Automation of Accounting Processes: Modern tools and technologies allow for automatic retrieval of sales data from various e-commerce platforms, minimizing the risk of errors and saving time.
• Knowledge of Legal Regulations: Tax law changes dynamically, and a specialized accounting firm is up to date with the latest changes and can advise on the best solutions.

The importance of ensuring data security by the accounting firm

Data security is one of the most important aspects of working with an accounting firm. Companies operating in e-commerce process enormous amounts of financial and commercial data, therefore:

• Protection Against Data Leaks: A professional accounting firm uses advanced technologies to prevent unauthorized access to data.
• Compliance with GDPR: Ensure that the chosen firm complies with all applicable personal data protection regulations.
• Regular Security Audits: A good service provider regularly conducts audits of its IT systems to ensure the highest level of protection.

Transparency of costs and conditions of cooperation with the accounting firm

Accounting for e-commerce is a specific field that requires not only accounting knowledge but also an understanding of the unique challenges associated with running an online store. One of the key aspects of choosing the right accounting firm is cost transparency and clear terms of cooperation.

How to evaluate the transparency of costs offered by an accounting firm?

Cost transparency is one of the most important criteria that should be considered when choosing an accounting firm. To evaluate whether costs are transparent:

• Request a Detailed Price List: Ensure that the accounting firm provides a complete list of its services along with costs. This should include all possible fees, such as monthly fees for bookkeeping, fees for additional services, or one-time fees for VAT and VAT OSS registration.
• Compare Offers from Different Firms: Reviewing several offers will help understand market standards and avoid unexpected expenses.
• Ask About Hidden Costs: Ensure that there are no hidden fees that may arise during cooperation.

Let's discuss accounting for your e-commerce

Contact us and tell us what the problem is, and our specialists will take care of the rest!

Schedule a consultation

The importance of establishing clear rules for accounting service compensation

Establishing clear rules for compensation is crucial to avoid misunderstandings and ensure smooth cooperation. An accounting firm specializing in e-commerce accounting should also offer flexible compensation options tailored to the development stage of the company and the individual needs of clients.

The need for flexible approach by the firm to client’s individual needs

Flexibility is important in the dynamic e-commerce industry. Online stores often change and grow, so it is important that the accounting firm can adapt to these changes. Therefore, it is worth asking the potential provider about:

• Frequency of Contact and Reporting: Determine how often the accounting firm will report progress and how easy it will be to contact them if needed.
• Scalability of Services: Ensure that the accounting firm can adjust its services to the potential growth of your business.
• Data Protection and Security: Ask about the security measures the accounting firm applies to protect your data and ensure compliance with privacy regulations.

Client Recommendations: Request references from other clients who use this accounting firm’s services in the e-commerce industry. Checking others’ opinions can help you make a decision.

Considering these factors and comparing offers from different accounting firms specializing in e-commerce accounting, you will have greater confidence in choosing the right partner for your business.

Key questions to ask a potential accounting firm before entering into cooperation

Before choosing an accounting firm, it is worth preparing a list of questions that will help assess the competencies and experience of a potential partner:

• What experience does the firm have in servicing online stores?
• Does the firm have references from other clients in the e-commerce industry?
• What systems for automating accounting processes does the firm use?
• What VAT settlement services for e-commerce does the firm offer?
• Does the firm have experience in handling sales platforms such as Amazon?

How does Taxology differ from other accounting firms?

Taxology stands out for its specialization in serving Polish online sellers engaged in full accounting. This gives us deep knowledge of the specifics of the e-commerce industry and the latest tax regulations concerning international trade.

Taxology offers comprehensive technological solutions that enable the automation of accounting processes and provide clients with convenient access to financial and accounting information, while tax advisors responsible for VAT Compliance at Taxology ensure smooth settlements based on large volumes of transactions.

In just one year, Taxology submitted over 7,000 declarations in 17 European countries, and the number of our clients has already exceeded 500. This is a testament to the trust we have earned from both small and large e-commerce businesses.

Thanks to Taxology, entrepreneurs can focus on growing their business, confident that their VAT is being settled fully in accordance with regulations. Additionally, Taxology offers VAT registration services in 17 EU countries and the UK, as well as VAT OSS registration and settlements, enabling quick entry into foreign markets.

It is also worth highlighting the high quality of customer service. Our clients, who have entrusted us with their accounting, have contact with a dedicated accountant who knows their business. Our support team assists clients with ongoing matters related to settlements and registrations and in communication with offices, including foreign ones, while our IT team ensures integration and proper data flow from various tools, such as BaseLinker or Amazon FBA, while maintaining contact with the client.

Accounting for e-commerce: How to choose the perfect Accounting Firm - Summary

Making the right choice of an accounting firm that specializes in servicing online stores is crucial for any entrepreneur operating in the e-commerce sector. Efficient and accurate accounting helps not only in managing finances but also in ensuring compliance with tax regulations. If you want to ensure that this compliance is maintained, schedule a consultation and entrust the handling of your accounts to our specialists!