Benefits of accounting outsourcing in the e-commerce industry

  • Last update: 10.06.2024
  • Published: 27.05.2024
  • Read in: 5 min

Accounting outsourcing is a solution increasingly chosen by entrepreneurs, including those in the e-commerce sector. Not only does it simplify business operations, but it often enables business expansion by saving time and financial resources that would normally be allocated to accounting processes.

If you are considering outsourcing the accounting of your online store to companies specializing in accounting services, the following article can help you make a decision. You will learn how accounting outsourcing allows you to:

  • Save time;
  • Save financial resources;
  • Optimize tax burdens;
  • Achieve financial transparency;
  • Reap additional benefits.

Time savings through accounting outsourcing

Running an e-commerce business and opting for accounting outsourcing can save entrepreneurs a significant amount of time. This is possible due to several factors:

  • Automation of accounting processes: Companies offering accounting services for online stores typically have professional software that, when properly integrated with a given store, can record transactions from various e-commerce platforms. They are often compatible with online payment platforms, resulting in automatic report and summary generation.
  • Real-time analysis of reports and data: With continuously generated reports and summaries, real-time data analysis is possible, enabling quick market adaptation and strategy adjustments without waiting for monthly or quarterly summaries.
  • Simplified financial management: Comprehensive accounting outsourcing services also simplify company financial management. With up-to-date data and reports, decisions regarding cost reductions or investments can be made more quickly and easily.
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Financial savings through accounting outsourcing

Among the advantages of outsourcing online store accounting is not only time savings but also financial savings, resulting from:

  • Reduction of costs associated with accounting errors, which can arise from improper accounting practices and result in costly corrections or penalties;
  • Timeliness in meeting deadlines;
  • Timely e-commerce settlements related to, for example, VAT or invoice payments;
  • Better financial management, associated with financial flow predictions and avoiding unnecessary expenses and financial debts;
  • Reduction of operational costs related to hiring qualified staff to handle accounting;
  • Increased inventory management efficiency due to the integration of the accounting system with warehouse management software. As a result of process optimization, costs are usually lower, and profitability increases.

 

Tax burden optimization through accounting outsourcing

Moreover, modern accounting outsourcing services for e-commerce bring another advantage: expert support in the area of tax exemptions or reliefs. These not only save financial resources and ensure VAT compliance (e.g., through VAT Compliance) but also facilitate their easy implementation.

Advantages of e-commerce accounting outsourcing - financial transparency

Through meticulous and transparent e-commerce accounting, the result is not only easier data analysis but also credibility building in the eyes of tax authorities, potential business partners, and investors. Additionally, if a company needs financial support or is seeking a grant, the assistance of professionals specializing in accounting outsourcing significantly facilitates achieving such goals.

Accounting outsourcing and security

Comprehensive accounting outsourcing services provided by dedicated companies are often highly beneficial for security reasons. Companies offering accounting outsourcing services to businesses, especially those in the e-commerce sector operating in various countries, know local regulations and laws, which helps avoid fines and sanctions. These often occur when entrepreneurs lack sufficient knowledge on how to handle VAT settlements, revenue accounting, or dropshipping in another country where they operate.

Moreover, another country often means different taxation for online stores or different requirements for bookkeeping. Therefore, having e-commerce accounting managed by a specialized company often equates to assurance of properly executed accounting duties, resulting in security. This allows focusing resources on running and growing the business rather than on correcting declarations or learning about regulations.

Additional benefits of accounting outsourcing in the e-commerce industry

Support in choosing the form of taxation

If you decide on accounting outsourcing for e-commerce at the start of your business, you can also benefit from additional perks. Accounting experts often assist in selecting the form of taxation that will be most advantageous for your business.

 

Accounting records

Depending on the type of business and income, the necessary type of accounting records will also vary. Whether it is simplified accounting, such as a tax revenue and expense ledger or a revenue record taxed by lump sum, or full accounting in the form of bookkeeping, e-commerce accounting outsourcing also includes maintaining the required accounting records.

 

Summary of the benefits of accounting outsourcing in the e-commerce industry

In summary, accounting outsourcing for e-commerce companies is a solution that not only simplifies processes related to sales settlements of online stores or sales platforms and managing such businesses but also provides many other tools enabling time and financial savings as well as ensuring safety and optimization in financial management. Their proper utilization can be the key to the success of any business, and professional e-commerce accounting can be an ideal solution for your company, bringing numerous benefits and advantages.

If you are looking for support in revenue settlements or managing the accounting related to online store sales, don’t hesitate! Check our e-commerce accounting offer and schedule a consultation!

Tomasz Połeć Tomasz is a co-founder of Taxology and a tax advisor (license No. 12104), with 15+ years of experience in Polish and international consulting firms. Leveraging his expertise from numerous tax reviews and audits, he offers proficient tax advisory services to e-commerce companies. He specializes in advising on VAT and CIT settlements in e-commerce and logistics.