eBay offers an incredible exposure to your online business. It offers a huge potential for the product sales as it is a reliable option online to sell your product. Online business is financially regulated just like any other business. You need to take care of the financial matters diligently if you conduct business online. You might need an accounting expert to handle financial matters and taxation if you are an eBay seller.
What Are The Filing Dates For eBay Sellers?
Tax filing dates for sole traders and companies are different. If you are a sole trader, i.e., you own the business entirely, whether you have employed staff or not, you are supposed to file taxes before 31st January. However, if you run a registered company that sells products on eBay, you need to file taxes within nine months after the accounting period.
What Are The Allowable Expenses?
Whenever you sell anything on eBay, you must record the expenses incurred for the sale.
– Taxes and shipping costs associated with the item.
– Manufacturing – Costs of materials, tools, and supplies.
– Postage cost, bank fee, PayPal fee and eBay fee if any.
– Damaged or Returned Items. You need to record the beginning and ending inventory for these deductions.
– Home Office Deduction – If you use your home office exclusively for eBay business, you can claim this deduction.
– Office Equipment – Expenses related to office supplies such as a computer, furniture, Internet service, etc. can be deducted.
– Travel Expenses – If your business requires you to travel to drop eBay packages to a post office or travel to source the product, you may be eligible for such deductions.
– Accounting Expenses – Whether you use an accounting software or paying an accounting professional, you can claim deductions for tax filing and tax preparation expenses.
What Type Of Accounting Services Will eBay Sellers Need?
Whether you sell an item or two or just make a small amount of money by selling on eBay, you are liable to pay taxes. It is important to hire a professional to handle your accounting and taxes as handling the accounts and other financial matters need expertise. Moreover, you can claim deductions for the account preparation costs and it is better to focus on your business. The type of accounting services you will need depends on your business requirements. Define your business requirements elaborately and interview the accountant accordingly. Companies need accounting services for maintaining accounts, payroll, self-assessment directors return and vat returns. Sole traders need accounts and tax return services.
Choosing An Online Accountant
Once you define your business needs and start shortlisting the accounting firms, you should take the following factors into account. – Expertise The firm or the accountant with at least a few years of experience in accounting is suitable for hiring. It would be even better if the accountant has an experience handling eBay taxation specifically. – Approachability You will need tax advise regularly to maximize your profits. The accountant should be easily approachable so that you can ask for advice or get other accounting needs fulfilled without delay. – Communication You should be able to communicate with the accountant without any problem. There should be no communication barriers such as language problems, etc. You must be able to communicate with the accountant through various channels such as phone, email, social media, etc. – Professionalism The accountant must be professional and take their job with utmost sincerity.
Choosing An Accountant In London
The first step is to google search the accountant and check the reviews. After you see enough positive reviews, you should look at the qualifications of the accountant to make sure that he is a suitable candidate. Get accountant references from fellow contractors. References, recommendations, and endorsements can help you hire suitable professional easily. Confirm what’s included in the price they have offered and what’s not included. It is crucial to make sure that the accountant understands IR35 thoroughly. Remember, it is your job to maintain your accounts and accountant properly. Accounting professionals can provide their services appropriately only if you provide them accurate and timely information. You are responsible for your accounts entirely and you are hiring the accountant’s services only. Hiring the right accountant can save you time and take the burden off your shoulders, but does not take away your accounting responsibilities.Contact us now