Digital revolution has helped the world of business to grow in unprecedented ways. Ecommerce businesses are rearing their hopeful heads in almost every part of the world, including London. However, just like in case of a conventional business, you need to be vigilant about your finances while running an online venture. If you have already hired an ecommerce accountant, they should be ideally handling every aspect of your company’s financial health, offering you strategic advice for the future, and making sure that you never run into any issue with important authorities. So, check if they are doing these X tasks.
1. Managing cash flow
A reliable ecommerce accountant in London will always track what you are earning and spending and whether you should concentrate more on reducing costs or increasing sales. They should prepare insightful reports so that you always have enough cash to buy inventory, pay your staff, and know how much tax is due.
2. Handling inventory
Ecommerce accountants should create a system for you to monitor sales and inventory, so that you know which stocks are more in demand and need to be replenished repeatedly. This way, you can also avoid unnecessary spending on large orders of other stocks that don’t sell quickly. An accountant in London should also know how to use the right software solutions for multiple platforms.
3. Predicting sales volume
Anticipating future sales is vital in the online business landscape if you want to stay profitable and stay competitive. An experienced ecommerce accountant can help with that by analysing past data and assessing the future risk of your products. They can suggest ways to lower the risk, boost your sales, and enhance profits.
4. Assisting with product costing
Deciding on the cost of a product is a complex affair as you need to consider the pricing used by your competitors, fees charged by different platforms, discounts, and so on. Ecommerce accountants should help you with that by calculating the cost of sold goods, average per unit cost, and net cost of products after accounting for everything that might affect your bottom line. A knowledgeable accountant in London will be able to factor in aspects like insurance and shipping as well while estimating product costs.
5. Preparing taxes
A knowledgeable ecommerce accountant in London should be able to estimate the tax implications of purchases, detect ways to reduce the same, and make sure that the filing happens on time and in the correct way. They should also ensure HMRC (His Majesty’s Revenue & Customs) compliance, so that everything is legal and you don’t end up paying more tax than you owe.
Finally
All in all, an ecommerce accountant is a good fit for your business if they can save your time, money, and increase the efficiency of all financial processes. They should handle your payroll requirements too. By hiring the right accountant, you can gain better visibility into your finances and take better decisions. So, if you still haven’t hired one, start your research and zero in on an accountant or agency who can serve your distinct needs. Companies like Unicorn Accountants can make your life simpler by providing customised and end-to-end services.
