Ecommerce Accounting
Let Touchstone’s team of professional accountants handle the accounting side of your online business so you can focus on operations and growth!
How We Help Ecommerce Businesses
Ecommerce is not as easy as it is made out to be, at least the financial side of it isn’t. Whether you are a drop shipper or a store owner on Amazon, Ebay, Etsy or sell via Shopify, we can help e-commerce sellers with their accounting, taxation and bookkeeping. Our dedicated Ecommerce accountants ensure client accounts and books are regularly maintained and they get financial solutions which are specifically tailored for the virtual world of retail. Our team has a strong understanding of tax deductions, saving money on your end of the year tax returns and so much more.
Why Use Touchstone Accountancy?
Because we are champions of straightforward and uncomplicated accounting procedures, which gives our clients all the time in the world to concentrate on growing their business. While clients stay focused on their business we stay focused on simplifying accounting processes like self-assessment return and filing returns with HMRC. From our bag of accounting tricks we also offer forecasting services which help clients meet their goals, risk-free. So whether you are interested in starting out an e-commerce business or form a limited company, Touchstone will be with you every step of the way, offering priceless financial advice and guidance.
What Expenses Ecommerce Businesses Can Claim?
Majority of online sellers miss out on valuable tax write-offs since they are unfamiliar with traditional deductions in an online business environment. Routine day-to-day expenses of an online business can save you a small fortune in tax-deductions. Your lack of understanding of traditional taxes in an unconventional field like ecommerce might rob you of precious revenue which you could have reinvested in the growth of your business.
There is a list of expenses an Ecommerce business can claim:
Advertising And Promotion
Any money spent on the promotion of your online business is deductible including the following.
- Marketing expenses like Google Adwords, Facebook Ads, ad placements in digital and print publications, sponsored ad placements on seller platforms, email marketing software, and paid content by influencers.
- Website-related content like hosting, plugins, stock images, domain names, subscription website services, themes and any service or facility used for the up-gradation of your website.
Cost of Goods Sold
Cost of Goods Sold, or COGS, is the expense the seller bears to manufacture or sell a product:
- Raw materials required for manufacturing and selling such as threads, brand labels, etc.
- Manpower involved in the production of the product. This does not include people hired for selling the product.
- Merchandise purchased for reselling. Only cost of sold inventory can be written off, since all unsold inventory is considered an asset.
Bank Fees
Any fee associated with business and credit card accounts are deductible:
- ATM fees, overdraft fees, deposit fees, wire transfer fees, and monthly service fees.
- Credit card fee: Annual fees and late payment fees.
Home & Office Expenses
Maintain a record of all home office expenses, since you have the advantage of writing off a percentage of the following expenses:
- Renters or homeowner’s insurance
- Repairs to home/office space- any repair made directly to home office is 100% deductible
- Rent or mortgage
- Utilities such as gas, electricity, and water