Before you launch your eCommerce business, it’s important to make sure you have all your ducks in a row—including enlisting the help of a professional accountant. An experienced accountant can help ensure that your business is structured correctly from a tax and legal standpoint, and can offer valuable insights into how to grow your business sustainably.
To help you get started, we’ve compiled a list of six important questions to ask your eCommerce accountant before launching your business.
1. What business structure should I choose?
There are several different business structures to choose from when starting an eCommerce business, and each has its own pros and cons. Your accountant can advise you on which structure would be best for your particular business.
2. What tax obligations will I have?
Ecommerce businesses are subject to the same taxes as any other type of business, plus a few additional ones. Your accountant can help you understand what taxes you’ll be required to pay and when they’re due.
3. What accounting software should I use?
There are dozens of accounting software programs on the market, and choosing the right one for your business is critical. Your accountant can recommend a few options based on your business’s needs and budget.
4. How often should I reconcile my accounts?
It’s important to keep a close eye on your finances, but you don’t want to waste time reconciling your accounts more often than necessary. Your accountant can help you develop a reconciliation schedule that makes sense for your business.
5. What financial statements do I need to prepare?
Most businesses are required to prepare at least two financial statements: a balance sheet and an income statement (also called a profit and loss statement). Your accountant can help you understand what other financial reports might be useful for your business and how to prepare them.
Asking these five questions—and getting solid answers from a qualified professional—will help you avoid some common pitfalls when launching an eCommerce business. By taking the time to get expert advice upfront, you’ll set yourself up for success in the long run!
