7 Key Parameters to Help You Choose an Ecommerce Accountant for Your Business

 

Ecommerce accountants specialise in bookkeeping and accounting for online businesses. They are not your typical accountants, so you need to be careful when choosing one. Here are some of the things you must consider to make an informed choice:

 

1. Get to know the accountants 

Look for established and reputable chartered accountants that are part of an independent firm in London. They should have relevant experience in supporting entrepreneurs looking to make their online business successful. 

 

2. Find out how they can support your business 

Seasoned ecommerce accountants will understand your business and its objectives, as well as your personality to deliver the best solutions and services. Their goal is to help you plan effectively to achieve your objectives, and measure progress as it occurs. Likewise, they must be able to provide business advice and take actions to remedy any issues your business may be dealing with. 

 

3. Identify what makes them different from other accountants 

Choose accountants who will prioritise your best interests. This way, they can provide high-quality solutions that are focused on the bigger picture. Make sure that they can communicate with you using simple language to avoid further guesswork and to help you make informed decisions quickly. 

 

4. Know their guarantees

Seek ecommerce accountants who can guarantee real value to your business. They value their reputation, so if you’re not pleased with their services, they won’t ask you to pay for them. Make sure they offer transparent, fair, and simple pricing, reliable communication, and responsiveness. 

 

5. Get to know their affiliations and registrations 

Their affiliations should prove that it is safe to hire them and that you can truly count on them. Verify their professional affiliations with ICAEW, and make sure they have professional indemnity insurance. They must be registered with the Information Commissioner’s Office to protect your confidentiality, as well as with the Companies House. Take note of their registration numbers for cross-referencing. 

 

6. Know what they can do as ecommerce accountants

Experienced ecommerce accountants can help you plan for business success, assist with financing for business growth, and give ideas for growth and efficiency. 

 

7. Find out what other ecommerce business owners are saying about them  

Look up reviews about the accountants and how they have helped other ecommerce businesses in London, but remember to take them with a grain of salt.

 Source url: https://www.allenbyaccountants.co.uk/7-key-parameters-help-choose-ecommerce-accountant-business/

Get VAT Advice to Keep a Clean Record

VAT is the most complex tax regime that is applied to businesses, and many enterprises overpay or underpay the tax on a regular basis. However, there are still many tax planning opportunities that can help a business save on their VAT and pay only what is legitimate and required.

If any business has overpaid or underpaid the VAT, going back up to 4 years because of mistakes or negligence, then it can be rectified, and the concerned VAT account can be brought back in order. It is always better if businesses can identify errors by themselves or else the HMRC (Her Majesty’s Revenue and Customs) has to pick it up, and they may levy interest or penalty on the amount of underreported VAT.

The businesses have to keep a track of their VAT accounts and trends. They should keep proper documentation of the submitted VAT and make pertinent disclosures at applicable times so that they can avoid situations where HMRC can raise the VAT inquiry on their affairs.

However, there are certain VAT schemes offered by financial advisors that can help a business to properly evaluate and submit the tax on the basis of several factors such as goods sold, the amount of VAT as the input cost, credit period given by / to customers or suppliers, and much more. Some schemes mentioned here can help a business to get registered under laws.

Cash Accounting: In this scheme, the client has to pay the VAT only after it has been paid by the customer. The client takes the input credit for the purchase only when he has paid his supplier. It offers a cash-flow advantage and this is why it has become highly popular with start-up businesses.

Flat Rate Scheme: Under this scheme, the client has to pay the tax under a fixed reduced rate set by HMRC for the sold products or services. The business charges the VAT according to a set standard but does not take credit of VAT on purchases. It is a suitable scheme for business owners who want to keep their VAT affairs simple and straightforward, and there are not too many input costs that have to be incurred.

Annual Accounting: With it, the client agrees to an annual VAT liability. The liability is based on the previous year’s figures, and the client has 9 months to pay the liability. It is suitable for businesses which do not have many resources to sort their books quarterly and just want to pay the tax annually.

Retailers Schemes: It is an appropriate scheme for retailers who undertake a large number of small transactions. Here they record and finalise the transactions for each working day, and separate the VAT at the end of the day based on a suitable VAT fraction.