Why do online businesses need E-Commerce Accounting Services in Canada?
So, you want to start an e-commerce business. Or do you already have an existing one? Whatever it is, accounting is an essential point, and the traditional venue is not worth it for e-commerce businesses. Your first thought maybe, “accounting is accounting.” What differentiates e-commerce accounting from any other business?
Eventually, when you talk about your e-commerce business needs and accounting issues with your accounting expert, you can find a concern. You may feel that your accountant is “out of touch” with your business world.
Who can help you with accounting services for your e-commerce business? Read out this blog!
Who Is An E-Commerce Accountant?
Running an e-commerce business is anything but conventional or traditional business. There are different technology, inventory issues, sales tax issues, and more. We can obviously tell you that e-commerce business accounting is not the same.
Accounting for an e-commerce business is different from manufacturing businesses or restaurants. It requires exceptional skill and knowledge. You need a specialist.
You will recognize the benefits of using an e-commerce accounting professional who “gets it” as it comes to such a business. Want to know why you need a special accounting service for the e-commerce business? Have a look at the paragraphs below.
1. Knowledge of cloud accounting systems
When you run an e-commerce business, nearly all receipts you receive are soft copies. Hence, why would you take a stack of paper to the accountant at the end of every year?
E-commerce businesses generally require online bookkeeping and accounting service. It will enable data sharing and other accounting services easy. You will experience paperless workflows and eliminate clunky data entry, and so on.
2. Knowledge of E-Commerce app stack
Those days do not exist when you worked with 3-4 applications to run your business successfully. Currently, most e-commerce business owners make use of anywhere between 20-30 apps for their businesses.
An e-commerce accountant understands the advantages of using specialized apps to solve specific issues for an e-commerce business.
3. Knowledge of E-Commerce Sales Tax Rules
An e-commerce business’s sales tax rules are different from a traditional business and complex. Let’s talk about e-commerce accounting services in Canada first.
- Alberta with just GST
- Different HST rates for Atlantic and Ontario provinces
- 4 provinces with their own PST
And more importantly, the sales tax depends on where the goods are “consumed” not from where it is shipped. The topic is more complicated than you may even think.
4. Fits Your Way Of Business Lifestyle
You may start the business in seek of time freedom, location freedom, and so on. So, you may not think of visiting your accountant’s firm during tax time.
You probably expect an accountant to do remote bookkeeping. Digital signatures, video calls, paperless document handling, and more online accounting services to fit your lifestyle. Well, an e-commerce accounting expert is a one-stop solution.
Be sure to hire an ideal accounting professional for this e-commerce accounting service need. Remember, making a wrong selection can be costly for your business.