image represents A Step-by-Step Guide To Finding The Right Accountant For Your FBA Business

A Step-by-Step Guide To Finding The Right Accountant For Your FBA Business 🪜

When you’re running an e-commerce business, bookkeeping can get complicated and time-consuming. At the end of the day, bookkeeping is all about keeping track of sales, inventory, cash flow, and tax deductions.

Obviously, it’s a vital task if your business depends on tax breaks. But bookkeeping isn’t just limited to taxes; it helps you keep track of sales, inventory control, expenses, and cash flow.

If you’re running an online business and looking to hire bookkeeping help or accountant services for your business needs, here are things to consider before hiring someone:

What’s the difference between a bookkeeper and an accountant? 👥

Bookkeepers and accountants are two terms used to describe financial professionals with different responsibilities.

image represents the difference between bookkeeping vs accounting for Finding The Right Accountant For Your FBA Business

Bookkeepers focus on the day-to-day accounting of a business, such as processing payments, recording transactions, and tracking cash flow. They also provide general bookkeeping services, such as preparing bookkeeping statements and financial statements.

On the other hand, accountants are responsible for providing financial advice and services, such as financial planning and tax consulting.

They also look into business finances in the context of business growth, profitability, and sustainability. An accountant can help business owners to take long-term financial decisions that could benefit the business in the long term.

In addition to these tasks, accountants are also involved in tax reporting for businesses. This ensures accurate reporting of financials and balanced books for businesses to make informed decisions.

Hiring an accountant can help business owners to avoid mistakes in financials and save time by having a professional handle bookkeeping task.

So if you want your business to gain financial stability and manage its finances efficiently, then an accountant is a must-have!

What should you look for in an accountant?  👀

Look for an accountant who specializes in e-commerce businesses, especially those selling goods on Amazon’s platform. This will help ensure they are familiar with the financial aspects of running an FBA business and can provide accurate and timely financial advice.

It’s vital that the accountant is knowledgeable in the nuances of selling on Amazon’s e-commerce platform. They should be able to understand how sales tax and fees work, as well as have a thorough understanding of how inventory management works.

If you’re doing a high-6-figure business, it’s worth considering hiring a specialized Amazon accountant. They should be able to handle accrual accounting and tax documents, making it easier for you to track your business’ financials. They should also be able to provide long-term financial advice, helping you make informed business decisions.

1. Hyper-organized 🤩

An accountant is a financial professional who helps businesses manage financial transactions and stay organized.

image represents Accountant should be Hyper-organized For Your FBA Business

There are over 1.3 million accountants in the U.S., which shows just how essential their role is in business operations. Ecommerce businesses require a different kind of accountant than those in a traditional business environment, so it’s important to find one who understands the unique needs of ecommerce companies.

When an ecommerce business is doing high-6 figures or more, a specialized Amazon accountant can be beneficial. They have deep industry expertise and accounting chops to help ecommerce businesses stay organized and make critical financial decisions.

Moreover, hiring a specialized Amazon accountant can provide a hyper-organized approach to finances that streamlines business operations and allows for quick decision-making.

2. Experienced dealing with similar tax situations 💻

When choosing an accountant for your business, it’s essential to ensure they have experience with similar tax situations as your business.

image represents Accountant should have Experienced dealing with similar tax situations For Your FBA Business

An experienced accountant will be able to provide you with accurate advice and help reduce the risk of filing incorrect taxes. It’s also important to interview multiple accountants and choose the one who feels most comfortable working with you.

It’s crucial for an accountant to understand the GAAP (Generally Accepted Accounting Principles) accounting standards that are commonly used in business.

This will allow them to provide accurate financial statements and advice regarding financial transactions, such as accounting for costs and revenue, financial statements, and tax deductions.

3. Familiar with ecommerce-specific software 💻

Certified Public Accountants (CPAs) are the best choice for accounting for ecommerce businesses.

image represents Accountant should be Familiar with ecommerce-specific software For Your FBA Business

They should be familiar with the specialized considerations involved with accounting for online sales, such as accounting for sales tax and shipping costs.

Experienced accountants can help simplify accounting processes by taking on some of the tedious and repetitive tasks, such as inputting data and reviewing reports.

Additionally, having an accountant familiar with e-commerce-specific software can help reduce the time required to generate financial statements and other business reports.

Ultimately, ecommerce businesses need to have a clear understanding of their financials in order to manage their business effectively.

An accountant can help make this process easier and more efficient by providing professional services such as accounting and tax advice, as well as implementing automated systems that streamline financial reporting.

4. Well-versed in accrual accounting 🔢

An accountant who is well-versed in accrual accounting can help you track your company’s finances and make better business decisions.

image represents Accountant should be Accountant should be Well-versed in accrual accounting For Your FBA Business

Accrual accounting is a financial method that records and tracks the changes in a company’s assets and liabilities over time.

An accountant who is well-versed in accrual accounting can help you determine the financial health of your business, analyze the impact of various financial activities, and prepare financial statements that accurately reflect its current status and future goals.

An accountant should have experience with business operations and accounting software. They must be able to provide guidance on tax planning and filing requirements.

Additionally, an accountant must be well-versed in accounting standards and practices, to ensure accurate financial statements are prepared.

5. Has a solid reputation and a visible, professional footprint 👣

Picking the right accountant for your business can be a challenging task. There is a range of factors to consider when finding the right accountant for your business.

image represents Accountant should Accountant should Have a solid reputation and a visible, professional footprint For Your FBA Business

It’s important to ask potential accountants about their experience with handling business tax and accounting-related issues, as well as their pricing and billing policies.

You should also ensure that you’re working with an accountant that has the expertise to help you navigate the ecommerce business ecosystem.

When choosing an accountant, be sure to check their credentials and professional background.

It’s also important to establish a professional footprint by engaging with our global ecommerce network of vetted experts. This will help you gain access to experienced professionals who can help you grow your business.

Conclusion 🤔

A business owner who plans to start or expand an ecommerce business needs an accountant. While bookkeeping is the basis of accounting, tax, and business management, accounting is the art of managing a business’s financials.

Accountants are trained to deal with e-commerce-specific business management challenges like inventory management, pricing strategies, and data collection and analysis.

They understand the ins and outs of ecommerce businesses. However, ecommerce business owners should also look for references from past clients as well as research the accountant’s skills and expertise before hiring them.

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