Businesses must generate revenue to continue operating, and the amount of revenue varies from company to company. While many small businesses bring in less than $100,000 per year, large corporations can generate millions. Tracking business revenue can be time-consuming, but companies need to maintain accurate financial documents.
Hiring an accountant ensures you’ll have accurate financial records and make informed financial decisions. Accountants typically have a bachelor’s degree in accounting or a similar discipline. Some also take the American Institute of Certified Public Accountants (AICPA) exam to earn their Certified Public Accountant (CPA) credentials. Today, many businesses have expanded to include online sales or focus exclusively on online sales. You may need to hire an ecommerce accountant if your company generates many online sales. Let’s look at how to find an ecommerce accountant, what they do, and other types of accountants your business might need.
There are different ways to find an ecommerce accountant.
Finding an ecommerce accountant is straightforward. You can Google “ecommerce accountant near me” to generate a list of ecommerce companies. Since these accountants process online transactions, they understand the value of a business website and should have a robust online presence. Reputable accounting firms provide information about their employees and their credentials, ensuring you can verify you’re hiring qualified professionals with years of experience.
Exceptional accounting firms provide information about their service fees and outline what their fees cover, such as revenue forecasts, controller services, budgeting services, and daily, weekly, and monthly reports. Look for a company that can adapt to suit your business needs.
You may also opt to ask other business owners for referrals. Ecommerce business owners have firsthand experience dealing with ecommerce accounting. Whether you locate an accountant online or get a referral from another business owner, you should look for reviews to ensure other clients are satisfied with their services. In addition to company websites, you can check the Better Business Bureau for customer feedback.
What do ecommerce accountants do?
Ecommerce refers to business transactions that happen through the internet. If you’ve ever purchased goods from an artist on Etsy, you’ve purchased something from an ecommerce business. Ecommerce businesses vary in size and include large corporate retailers, such as Amazon.
Your ecommerce accountant will process all your business transactions, so you must maintain accurate records for tax purposes. Your revenue reports also enable your accounting team to create revenue projections. Accurate revenue projections are vital for your business operations because they help you anticipate costs and allocate funds to cover those expenses. For example, you may need to purchase more supplies or additional staff to handle your business’s demand, and you may need to set aside more money for business taxes. You can also use revenue forecasts to determine whether you can afford to invest in new equipment.
Ecommerce accountants also advise business owners about ways to increase their revenue, such as making financial investments or accruing tax-deductible expenses to reduce their tax burden. Ecommerce accountants also track company assets.
Are there other types of CPAs your business might need?
Depending on the size of your business, you may need a payroll accountant. Payroll accountants ensure employees are paid accurately. They calculate appropriate deductions for unemployment insurance (UI), health insurance, and federal, state, and local taxes. These accountants submit those payroll taxes and benefit costs on your employees’ behalf.
Tax accountants specialize in preparing and filing taxes. Those who work for businesses understand what expenses employers can write off to reduce their tax burden. They may also communicate with your ecommerce accountant to determine if you can write off part or all of an asset’s cost.
Hiring an ecommerce accountant ensures you have an accountant processing all online transactions. You’ll receive regular financial reports, enabling you to use accurate revenue projections to make informed business decisions. You can locate these accountants through an online search or ask other ecommerce business owners for referrals.