Overview
Online platforms have revolutionized the way of doing business, and have had a major positive impact on consumer behavior. Ecommerce stands out in its ability to enhance a better business potential. Different sectors of the economy are exploiting the benefits that come with ecommerce, and accounting is not an exception.
Ecommerce for accountants is good not just to veteran accountants, but to budding accountants too. Again, both start-ups and already established businesses can use ecommerce services for their accounting needs.
This article will guide accountants on how they can make use of ecommerce services in order to sell their services.
Benefits of Ecommerce to an Accountant
One of the greatest challenges that face business owners is how to increase the profitability of the business and at the same time minimize on the cost of running the business. Closely connected to this is the need to embark on viable and sustainable alternatives that are going to stand the test of time. An accountant can make the use of ecommerce in order to boost on sales and profitability.
An accounting firm is a busy office and a busy firm. This is due to the critical nature of the service (almost every company is going to ask for accounting services). If you use ecommerce services, you are going to concentrate on the core mandate of the business. For example, managing of employees takes a lot of time and resources and it is an area that warrants a lot of attention. Thus, through ecommerce, you are going to have more time for your accounting needs.
Through ecommerce data analysis, you are going to understand which sections of your business are promising, and which segments are wanting. Upon deciding this, you can have a three point of action:
-Concentrate on the segment which is performing well, and playing less emphasis on the section which is not performing well
– Dropping the section which is not performing
-Boosting the section which is not performing
Ecommerce heavily relies on digital marketing as well as supply chain. For example, you need to be aware of the returns based on your ad spend. In addition to that, there is a need to evaluate the amount of stock to hold, and the amount to release. At the center of this is the need to ensure that the digital solutions that you choose are compatible to the needs of the accounting business.
You can use ecommerce for accounting in order to navigate the global business environment. For example, if you are a Palm Beach Accountant and are sourcing all your goods from the Chinese market, you may consider establishing an off-shore company in Hong Kong. This is going to help you in two major ways. One, establishing an offshore company will translate to 0 tax. Second, you will not be viewed as unethical because many entrepreneurs do not categorize Hong Kong as a tax haven. What is important is to try to spread your tentacles in a wide geographical area without stretching your resources.
Ecommerce for your accounting needs is going to help you prepare better for the future, work within the allocated budget, and ensure that there is better cash flow management. In addition to that, you are going to achieve a streamlined accounting process and have dedicated resources for your business.
Ecommerce in the accounting department will help you manage and withstand competition from the peers. Withstanding competition does not mean that you lower your prices. The practice of lowering prices is, basically, a race to the bottom and a form of prices wars. Rather than thinking about such an inconsequential strategy, think about how you can enhance the value of your products and services.
Again, the market will also have a cheaper product or service. Therefore, show your online visitors that, in the market, one gets what he or she pays for. Better business can be achieved through the following:
-Increasing the sales conversion rate
-Increasing sales to the site
-Increasing the average order value
Ecommerce options are going to help you manage how you get paid (payment getaway). Common payment getaways include Pay Pal (the most common), Stripe, and Braintree. Different ecommerce businesses will warrant a certain payment getaway. For example, if your business is global, Pay Pal has penetrated to most countries, but not all.
The most important thing in your PayPal get away is to ensure that the data and privacy of the online buyers is safe. With the security threats in the market, this is not easy to achieve, it takes a lot of time and precaution. On your part, it is good to ensure that the right amount reaches you, and in time for that matter. Remember, in ecommerce, you are going to deal with a large amount of transactions, and you have to learn how best to manage them.
How can an Accountant use Ecommerce to Sell Their Services?
Good accounting plays a critical role in evaluating the health of a business. For example, before investors make a decision on investing in you or not, they are going to look at your accounting records and see if interacting with you is worth it. Bad accounting could have harsh consequences on your business. For example, you may find that IRS will want you to explain a number of things concerning your business. Such mistakes will limit future business opportunities.
Having stated that, the following points can help an accountant use Ecommerce to sell their services. To start with, as an accountant, you need to make the right choice of your business entity. The choice of the business entity has far-reaching implications on what you can do and the tax modalities. For example, a sole proprietorship has a different tax modality from a limited liability company. If you are not sure about choosing the right business entity, then seek the services of a business consult who will offer you expert advice. Such decisions should be made early enough in order to avoid problems later,. This is because such mistakes are not easy to correct.
Accountants should have a habit of tracking the business transactions in order to ensure optimal outcomes. This can be done through sales orders, invoices, and receipts. In order to ensure that this is done effectively, automation is a matter of paramount importance. Tracking promotes accountability in doing business and helps in identifying errors which could affect the performance of the business.
Ecommerce in accounting cannot be done without following the pertinent laws and regulations. Failure to follow the law is not only inconsequential but can be expensive to the business. When a business does not follow the prescribed legal procedures, such a business can be trapped in long court cases. Most importantly, the business should ensure that matters of tax are well taken care of.
An accountant can take advantage of states which do not have sales tax. These include New Hampshire, Oregon, Alaska, Delaware, and Montana. However, when one sells in a state with sales tax, there are tax implications. In other words, just because one’s business is based in a state with no sales tax does not mean that one will not pay tax when selling in states where sales tax is paid. The most important thing is to be informed.
An accountant should evaluate if he or she is going to be in need of the help of professionals. The accounting field is wide, and one could be over-whelmed. In such a case, some duties can be carried out by another professional. For example, a book-keeping professional plays a critical role in lessening the work-load that an accountant could face. After all, good accounting starts with good book-keeping.
Tax savings and tax planning is a legal way of reducing the cost of running the business. All you need to do is to stick to what the authorities have prescribed. These include the following:
-Wages
-Office rent
-Utility cost
-Equipment
-Accounting services
It really does not matter what strategy or system that you use. What is important is the ability to identify the right system and strategy through a careful decision making and rational analysis. This is largely based on the needs and preferences of the business. Whatever choices you make, you need to be faithful in order to realize optimal outcomes and wait until you realize positive outcomes.
Any option taken should be within the budget. In many cases, business owners have committed themselves to business choices that they cannot afford. This can be very harmful to business practice. The most prudent thing to do is to make a choice that one can afford. This stretches the resources of the business, and the business may not recover.
Accounting Services and Software
There are several accounting services and software that an accountant can use for ecommerce. To start with, FinancePal ensures that you are stress free when it comes to accounting, pay roll, and book-keeping. FinancePal has partnered with other players in the accounting industry. Such players include quickbooks. FinancePal is an affordable platform for your accounting needs.
Xero Standard Accounting (XSA) is a superior accounting services that lets you keep track of various office tasks such as copying, printing, faxing, and scanning. You need to configure some of your equipment so that you can effectively use accounting codes. Xero accounting software helps you to do everything in one place. In short, there are many opportunities for the use of Xero. You need to contact the company and make a decision on what is best for you.
Closely connected to this is the need to ensure that you can incorporate cloud computing. For instance, quickbooks and xero do use the cloud space. With cloud, you can access data from any device, and in any time. It offers the much-needed scalability which will help the business in the future.
When looking a cloud computing software, then make sure that you have the following in mind:
-The software should be easy to use
-The software should sync with credit cards and bank accounts
-There should be integration with business software that is already in use
-Safety and security is a necessity
The list for accounting services and apps is long. Therefore, you need to be careful about the option that is going to work for you. Word of mouth works very well when you think about options to make. Again, when you peruse through the internet, you can check the reviews from users, and the pros and cons of each option. It is always good to try options which are a bit familiar to you rather than wading in uncharted waters.
Outsourcing
There is an outsourcing option when it comes to ecommerce accounting. The good thing with such agencies is that they have been in the business, and understand the dynamics facing the business. Outsourcing to such an agency is going to save you time. Through this, you can concentrate on other business activities.
Towards the Future
The future of ecommerce is bright and optimistic. In the coming years, more and more people are going to start their online search through the use of the internet. Therefore, if you use ecommerce for accounting, you are going to grow your business in leaps and bounds. Therefore, as you plan for the future, think about what scalability can do for you.
Accountants should position themselves towards having a future in the field of ecommerce. After all, some of the ecommerce giants, Amazon for instance, started as simple entrepreneurial start-ups. There is no reason why you cannot achieve the same. What is important is to be patient and strategic in the process of doing business.
Conclusion
Unlike traditional retail service, an ecommerce business has certain challenges that it faces in its operations. As an accountant, you need to be aware of these challenges early enough so that you can prepare yourself early enough and make an informed decision. Overall, an accountant can make use of ecommerce service to his advantage.