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Accounting For Your
Online Retail Business

Accounting for your online retail business

This client is an online retailer and wholesaler with B2B, direct-to-consumer and affiliate sales. Sales orders were received from three main channels. The first, directly from their own online retail storefront, hosted on Shopify. Secondly, B2B and wholesale sales were received via the Unleased ecommerce platform and the third channel was via Amazon.

With a network of global suppliers, purchase invoices had to be recorded and payments made in multiple currencies. Alongside an extensive payroll list, the internal accounts department was under pressure to keep up with demands and the existing hardware-based accounting platform was no longer fit for purpose.

Linking sales
and purchasing assets

By moving this client over to Xero cloud accounting we enabled the business to link every aspect of their sales and purchasing system. Shopify pushed sales information into Unleashed which collated all sales and pushed the data through to the clients Xero account.

Stock managed via Unleased, and the overall stock journal, is posted automatically into Xero for each sale.

Amazon sales orders and costs were linked into Xero through A2X. A2X is like a financial housekeeper that sits between amazon and your accounting system, tidying, sorting and summarizing your transactions.

Incoming expenses
and purchase Invoices

For incoming expenses and purchase invoices, we advised the client set up ReceiptBank. With pinpoint accuracy, ReceiptBank scans all the information on-the-go — from your mobile, laptop or email inbox — storing and organising the data using a mix of AI and human sorting. The extracted information is then posted them into Xero, cutting down on manual data entry.

To automate supplier payments and deal with issues of multi-currencies, we helped the client set up TransferWise which allows you to pay invoices, buy inventory, and handle payroll with the real exchange rate in over 50 currencies.

Finally, Xero Payroll posted all payroll costs directly into the client’s Xero accounting package.

The resulting automatic reconciliation of payments and spending across multiple channels saw a significant reduction in manual data input and reconciliation tasks. With human input error taken out of the equation, customer and supplier invoicing inquiries were reduced.

Direct Peak specialise
in accounting for your online
retail business.

Our accountancy service packages are fixed-fee and tailored to the requirements of your business. There are no extra charges for queries by phone or email, so if something is worrying you, please pick up the phone and call.

If your current accounting solution isn’t keeping up with your fast-moving business, talk to us now on 01778 481044 or book an appointment.

Book a call with us on a day and time that suits you.

Accounting for your online retail business

Selecting the right accountant for your online retail business is a crucial decision that can significantly impact your financial management and business growth. Several key factors should be considered when making this choice.

First and foremost, consider the accountant’s expertise and experience in the realm of online retail. Online retail businesses often have unique financial aspects, such as handling e-commerce platforms, digital transactions, and inventory management. An accountant familiar with these specifics can provide tailored advice and efficient solutions to optimise your financial processes.

Moreover, assess the accountant’s qualifications and credentials. Look for professionals with relevant degrees, certifications, and memberships in accounting organizations. An accredited accountant is more likely to have a strong understanding of tax laws, financial regulations, and best practices for online businesses, ensuring compliance and minimising tax liabilities.

Communication and collaboration are also vital considerations. Choose an accountant who communicates effectively and is open to collaboration. Clear and regular communication helps in understanding your business’s financial health and making informed decisions. An accountant who is approachable and responsive can provide timely advice and address any financial concerns promptly.

Cost and fees are essential factors to evaluate. Understand the accountant’s fee structure and ensure it aligns with your budget and financial capacity. It’s crucial to strike a balance between cost-effectiveness and the quality of services provided. Compare quotes from multiple accountants to ensure you’re getting a fair deal.

Furthermore, seek referrals and read reviews or testimonials from other businesses, especially those in the online retail sector. Recommendations from trusted sources can give you insights into an accountant’s competence, reliability, and track record of success in managing finances for similar businesses.

Lastly, consider the scalability of the accountant’s services. As your online retail business grows, your financial needs will likely become more complex. Choose an accountant or accounting firm that can accommodate and adapt to your evolving requirements, ensuring a long-term partnership that supports your business’s growth and financial stability.

When selecting an accountant for your online retail business, prioritise expertise in online retail financial dynamics, qualifications and credentials, effective communication and collaboration, cost considerations, referrals and reviews, and scalability of services to make an informed decision that aligns with your business goals and financial needs.