Specialist Accountants for ECommerce sellers in London
Internet commerce or electronic commerce, means selling and buying of services or goods using the internet, and the transfer of data and money to fulfil the transaction.
As an E-commerce business you will have a wide range of platforms and payment portals such as EBAY, Amazon FBA, shopify , Paypal and many more.
It is vital to ensure that the accountant are regulated by one of the accountancy bodies like CIMA-Chartered Institute of Management Accountants, ICAS- Institute of Chartered Accountants or ACCA-Certified Accountants, AAT and CIPFA. These organizations hold standards and this ensures that you are getting quality practicitioners. GM professional accountants specialise in Ecommerce businesses, majority of the businesses will be dealing with Amazon, Paypal and Ebay transactions. We have specialists that will help you extract the reports needed for the accounting and vat deadlines.
When are E-commerce Sellers Expected to File their Returns
The tax authorities have set different dates for filing returns for companies and sole traders. As a sole trader, whether you have employees or own and run your business, you need to submit tax returns before 31st January. However, if you have a registered company selling e-commerce products, you need to file your returns no longer than nine months post the accounting period.
What can you Claim as Allowable Expenses?
1) You need to have records of all expenses incurred for anything you sell as an e-commerce business.
2) Accounting Expenses – Whether you have engaged the services of a professional accountant or use accounting software, you can claim tax preparation expenses and tax filing deductions.
4) Travel Expenses – If by any chance you need to travel to source your products or deliver e-commerce packages to the post office, you can claim travel expenses.
5) Shipping costs and taxes associated with the item.
6) Expenses for Office Equipment –You can claim expenses for office supplies and services including internet service, furniture, and computers among others.
7) Manufacturing costs of supplies, tools, and materials.
8) Home Office Deduction – You can claim deductions if you run your e-commerce business from the home office, which is used exclusively for that purpose.
9) Returned or Damaged Items – You have to record the ending and beginning inventory to claim the deductions for these.
10) E-commerce fees, Paypal fees, bank fees, and postage costs.
Types of Accounting Services You Need as an E-commerce Seller
The services you will need for a limited company will be the following:
- Statutory company Accounts
- Abbreviated Accounts
- Self assessment directors tax return
- Pension compliance statement
- Confirmation statement
- Vat returns per quarter
Whether you make a small amount of money or just sell an item or two from your e-commerce business, you are expected to file your tax returns. This is why it is critical to engage the services of a professional tax and accounting expert to handle all your financial matters and accounting. Furthermore, you can claim deductions for account preparations expenses. You do not need to be doing tedious accounting work when you should be focusing on tasks to grow your business. Your business requirements will typically determine what type of accounting services will be suitable. You will need to interview the accountant and define your business requirements to get the best accounting package. Some of the services that companies need include VAT returns, director’s return, self-assessment, payroll, and maintaining of accounts. Sole traders do need tax returns and accounting services.
How to make the right choice at choosing the ideal accountant?
First, you have to get that accountant prior to starting the venture. The accountant is then able to assist you to get the business structure right at the beginning. Besides, a good accountant will help you with the plan of the business and aid with the planning of tax.
Also get an accountant with the ideal expertise. The accountant will assist in coming up with the tax returns and the financial files for organizations of the same revenue and size as yours.
GM Professional accountants have the expertise and experience to help you develop and grow your business through tax planing and tax advice. As there are vat implications if you are selling abroad and there are different vat thresholds in each country. Our tax advisers can help you understands this and make an informed decision.
Thirdly, decide on the software you will use, GM professional accountants provide this with all our packages and this ensure that all data is secured and kept up to date.
Fourth you have to consider bringing on board someone who would like to save you money. In case you are a sole trader, ask yourself whether you can cut off some of the costs like car expenses, phone bill or maybe the payments of rent and mortgage and what could be the consequences of such actions. The accountant will assist you to look out for any pitfalls. For instance, utilizing your house as a business place could prompt being charged tax when you want to sell it.
You have to put in mind that ecommerce business has a certain process for acquiring, sale and distribution of goods. In this process, you have to ensure to make the process efficient. GM professional accountants provide you with reminder fore your Company accounts, VAT, Payroll and Self assessment tax returns.
Depending on your business. set up, you may not need vat return services if you have not registered for vat. There is a compulsory threshold of £85,000. You will need to keep a record of this and ensure you register when you hit this threshold.
GM profesional accountants also provide an overview on the expenses that you can claim. We ensure you are comfortable and know which expenses are wholly and exclusively and remote to your business. We have office located in London , Manchester and Essex.
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