Accountants for Dropshipping E-commerce Businesses

Accountancy services for E-commerce businesses

The Institute of Chartered Accountants(ICA), Chartered Institute of Management Accountants(CIMA), CIPFA, AAT and ACCA for certified accountants are some of regulatory accounting bodies most reputed accountants are affiliated with, to ensure that they conform to the accounting norms.

Hence it is important to ensure that the accountants who are hired for your business are affiliated with these regulatory bodies, ensuring that you receive quality services. E-Commerce businesses, having a large number of Amazon, eBay and PayPal transactions are the main clients of GM professional accountants.

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Deadlines for filing returns for E-commerce sellers

Our specialists will help your online business and go through the various vat and accounting deadlines for filing, by helping your business extract the reports which are required from the eCommerce marketplaces, and payment processors.

The last date for filing of returns for sole traders and companies is specified by the tax authorities and is different. Even if a sole trader has employees, the rules are the same as a sole trader who is running the business alone, and returns have to be filed by January 31.

On the other hand, a registered eCommerce company selling products online, the returns should filed within nine months of the completion of the financial accounting year .

Claiming allowable expenses

E-commerce businesses can use the following tips to claim expenses

– It is important to main proper records of all the expenses incurred as an eCommerce business

– if the business has hired a professional accountant or is using an accounting software, these can be claimed as tax preparation, tax filing and accounting expenses

– If a business owner, staff has to travel to source products, or deliver the product packages to the post or courier offices, these can be claimed as travel expenses

– Shipping costs like courier charges and taxes for the products sold

– Office expenses, like the cost of the internet services, computer equipment, furniture, stationery and others can be deducted

– if any item is manufactured, the manufacturing expenses like tools, raw materials and other supplies

– a deduction is allowed for a home office, if a part of the home is used exclusively for running the home office.

– the business owner should maintain records of his inventory at the beginning as well as ending of the financial year, if he wishes to claim damaged or returned items as expenses

– E-commerce marketplace, bank , PayPal fees, postage costs

– Reselling expenses

Accounting services for limited companies

The accounting services which a registered limited company selling products online will require are – Abbreviated accounts and the statutory accounts of the company
– CT600 for corporation tax
– Payroll, pension compliance statement
– Director’s tax return, a self assessment
– Bookkeeping and filing Vat returns quarterly
– Confirmation statement

Even if an e-commerce business sells only a few items online, the business owner is expected to file tax returns. Hence it is advisable to hire the services of a professional tax and accounting professional. This can be claimed as an expense, and the business owner can focus on making his business grow. Your business profile will usually determine the specific nature of the accounting services required.

GM professional Accountants specialise in this sector and we have offices in London, Manchester and Ilford Essex.