How to Choose the Right E-Commerce Accountant for Your Business?

If you run an online store, you already know how busy things can get. You have to deal with sales, shipping, customers, and products all at onc. But there is one important part you should not forget: accounting. To make everything organized online stores hire E-Commerce Accountant to help them. 

In this guide, we will help you understand what an e-commerce accountant is, why they are important, and how to pick the best one for your business. We’ll also talk about e-commerce bookkeeping and why it matters.

What Is an E-Commerce Accountant?

An E-Commerce Accountant is a special kind of accountant who helps online businesses. They know how to handle money made from websites like Amazon, Shopify, Etsy, and more. They understand the tools, sales channels, and software that are often used in e-commerce.

E-commerce bookkeeping is different from normal bookkeeping because it includes lots of online payments, returns, fees, and taxes. A regular accountant might not know how to track all that. But a good E-Commerce Accountant will.

Easy Ways to Choose the Right E-Commerce Accountant

Not all accountants are the same. Here are the most important things to look for when choosing the best E-Commerce Accountant for your business:

1. Experience with Sales Channels

Your accountant should know how sales work on platforms like Amazon, Shopify, or eBay. Money comes into your bank from these sites, but that doesn’t show the full picture. A skilled e-commerce accountant knows how to:

• Read reports from Amazon Seller Central.
  
• Use tools like A2X or Link My Books.
  
• Connect these tools to accounting software like Xero or QuickBooks.
  

This kind of experience is key for accurate e-commerce bookkeeping.

2. Knowledge of Online Payment Processors

Many online stores use PayPal, Stripe, or Square to collect payments. These processors charge fees that must be tracked. Your accountant should know how to:

• Match sales reports with your bank account.
  
• Record processing fees correctly.
  
• Make sure your business gets the right amount of money.
  

This makes your e-commerce bookkeeping clean and accurate.

3. Tech-Savvy Skills

E-commerce businesses use a lot of technology. Your E-Commerce Accountant should be comfortable using:

• Cloud accounting software like Xero or QuickBooks Online.
  
• Sales tax tools.
  
• Inventory tracking apps.
  
• Payroll software (if you have a team).

They should know how to connect all these tools together to save time and avoid errors.

4. Understanding COGS and Inventory

COGS stands for “Cost of Goods Sold.” It means how much it costs to make or buy the products you sell.

To grow your store, you need to know your gross margin (your profit after subtracting COGS). Your accountant must:

• Know how to track COGS for each product (SKU).
  
• Record inventory changes correctly.
  
• Give you reports on your profit margins.
  

These are key parts of good e-commerce bookkeeping.

5. Affordable and Reliable Help

Many e-commerce stores hire outside accountants (outsourcing) instead of having one full-time. This is smart and affordable. Companies like Meru Accounting have expert e-commerce accountants who know everything from taxes to inventory.

They offer:

• Bookkeeping at affordable prices.
  
• Help with taxes and payroll.
  
• Expert knowledge of tools like A2X and QuickBooks.

 Meru Accounting is a great choice if you want expert help with e-commerce bookkeeping.

Why Do You Need an E-Commerce Accountant?

If you sell things online, you need an E-Commerce Accountant to help you. Here’s why:

• They help you track your money
  A good E-Commerce Accountant keeps your sales and spending in order so you know how much you earn.
  
• They match your sales and payments
  They make sure the money from your online store matches what goes into your bank.
  
• They understand taxes
  E-commerce bookkeeping needs someone who knows online tax rules and can help you follow them.
  
• They stop making big mistakes
  Mistakes with money can cost a lot. A good E-Commerce Accountant helps you avoid those mistakes.
  
• They give helpful reports
  They make reports that help you see how your business is doing and how to grow.

Disadvantages of Not Choosing the Right E-Commerce Accountant

Picking the wrong E-Commerce Accountant can cause big problems for your online store. It’s like using the wrong key for a lock; it just won’t work! Here are some bad things that can happen:

1. Messy Money Records
   If your accountant doesn’t do things right, your money numbers might be all mixed up. You won’t know how much you really earned or spent. This makes e-commerce bookkeeping very confusing.
2. Problems with Sales Channels
   If they don’t understand Amazon, Shopify, or eBay, your books could be full of mistakes. A good accountant should know how to use tools like A2X and Link My Books to keep your money records clean.
3. Online Payment Confusion
   Stores use PayPal, Stripe, and Square to get paid. If your accountant doesn’t know how these work, they might forget to track fees. Then your business might look like it made more or less money than it really did.
4. Tax Trouble
   A bad accountant might not know online tax rules. This means you could pay too much or too little in taxes and that could get you in trouble with the tax office.
5. Wrong Profit Numbers
   If your accountant doesn’t understand things like COGS (Cost of Goods Sold), they can’t tell you your real profit. That means you might be losing money without knowing it.
6. Wasting Time and Money
   If your accountant isn’t good with tech, you might spend too much time fixing mistakes. A good E-Commerce Accountant knows how to use tools like Xero and QuickBooks to make e-commerce bookkeeping faster and easier.
7. No Business Growth
   Without good money reports, it’s hard to know how your store is doing. You can’t plan to grow or improve. A good accountant helps you see what’s working and what’s not.

Finding the right e-commerce accountant is one of the best choices you can make for your online business. A good accountant helps you save time and money. They make sure your taxes are done right and your money records are clean and correct. 

E-commerce bookkeeping can be tricky, but with the right accountant, it becomes easy and stress-free.That’s why good e-commerce bookkeeping and a smart E-Commerce Accountant are super important for online businesses At Meru Accounting, we help online stores like yours with bookkeeping and taxes. We understand how online selling works and use the best tools to help your business grow.

FAQs

1. What is an E-Commerce Accountant?
   An E-Commerce Accountant is someone who helps online businesses manage their money. They understand online sales, payment tools, and bookkeeping systems made for e-commerce.

2. What makes e-commerce bookkeeping different?
   E-commerce bookkeeping involves more tools, platforms, and payment processors than regular bookkeeping. It includes tracking returns, fees, online payments, and taxes.

3. Do I need a tech-savvy accountant for e-commerce?
   Yes! Since online businesses use software like Shopify, Amazon, PayPal, and QuickBooks, your E-Commerce Accountant must be comfortable with technology and software integrations.

4. Why is understanding COGS important in e-commerce?
   COGS helps you know how much profit you make. A smart accountant will track your cost of goods, giving you better reports and helping you make smart business decisions.

5. Can Meru Accounting help my e-commerce business?
   Yes! Meru Accounting has expert E-Commerce Accountants who can manage your e-commerce bookkeeping, taxes, and more so you can focus on growing your store.