Adventures in E-Commerce, Choosing the most important person for your team – An accountant
Don’t believe the hype. All accountants are NOT alike, especially when it comes to understanding e-commerce operations. This is an industry that’s growing and evolving at a rapid pace. Finding the right accountant to guide you through the many twists and turns of e-commerce is just as important as deciding how much inventory you will need. Make the wrong choice and you’ll end up way over your head.
Determine what you need
How much involvement do you need from an accountant? If you’re just starting your e-commerce business, it’s probably minimal engagement such as assisting with annual tax returns. If your e-commerce business is earning more than $20,000 per week, it’s definitely time to keep a good accountant on speed dial. At this stage of business growth, you need a certified accountant with experience in bookkeeping, financials, cash flow, and tax services related to e-commerce.
Any search for an accountant should begin by checking credentials. Visit your State Board of Accountancy to confirm an accountant’s credentials. Find a complete listing of state boards here.
Decide if size matters
It’s up to you to decide if a larger accounting firm is more your style or if you have confidence in a sole practitioner. As a new business owner, a larger firm may not give you the personalized attention you may need. Additionally, it may not fit your budget. Smaller accounting businesses are not to be overlooked in helping you manage your business, no matter its size. Sole practitioners might be more responsive in addressing your business. Whatever you decide, be very clear what your needs are and confirm how active the accountant will be in helping you meet them.
Ask for references
A simple online search will provide an endless list of accountants who claim to specialize in e-commerce businesses, but always check the details. Any reputable accountant will provide a list of clients who can confirm expertise in e-commerce. Be sure to ask questions related to your specific business needs. Ask about responsiveness and keeping up with regulations and rules for e-commerce. Overall, seek evidence that any accountant of interest to you is capable of handling the complexities of your business.
You’ve worked hard to create a thriving e-commerce business, so the last thing you need is to hire an accountant who does not have the experience to help you manage your books. An accountant will be your most trusted advisor and privy to all financial matters related to your business. Choose wisely.
Connect with the team at Rektio Accounting for your e-commerce questions.