E-commerce/retail office supplies company accounting can be a time-consuming job for in-house staff workers, many of whom would prefer to concentrate on marketing and selling instead of financial record-keeping. But if you do opt to take on at least some of the accounting jobs by yourself, it's imperative to recognize the unique characteristics of e-commerce accounting compared to brick-and-mortar ways of doing business. And when it comes to things like tracking inventory, accounting for state sales taxes, and deducting various office expenses, an e-commerce/retail office supplies company CFO advisory service can explain all the special rules that e-commerce companies should know.
E-Commerce Retail Office Supplies: Special Challenges
The following is a very abbreviated list of the unique aspects of accounting in the retail office supply sector:
- Office expenses: Brick-and-mortal retailers often have clearly defined rental expenses for office space. Many e-commerce sellers in the office supply sector work out of their homes and don't get a large of a write-off, in most cases, for rental expense line-items. To make matters even more clouded, rules for the home office deduction change frequently and draw an inordinate amount of IRS audit attention unless the expense is reported accurately.
- Inventory:Most e-commerce office supply companies store their inventory either off-site, in a rental warehouse, or in their own homes, which can mean a complex expense calculation for a line-item that can be quite large.
- State sales taxation: For e-commerce retailers in any business sector, figuring out the many different state sales tax laws can be a source of massive confusion for even the most astute business owners. Fortunately, there are a few decent software solutions on the market, but not all of them make the grade. One of the major problems office supply sellers face is that states have different dollar-amount thresholds with regard to sales tax reporting and collection.
- International sales: If you sell internationally, you'll need to be conversant with a host of topics like value-added taxes, customs forms, special reporting requirements, exemption from state sales taxes, and more. It's a fact that many e-commerce retailers earn a substantial portion of their profits on international sales of goods, especially in the office supply industry. If this is true for you, its important to be well versed on the issues or of course — bring in a CPA for e-commerce/retail businesses.
Getting the Right Help at the Right Time
At Atlanta-based Fusion CPA, our team brings solid experience and a high level of strategic knowledge to the table for each one of our valued clients. If you want an e-commerce/retail office supplies company accountant who can walk you through tasks like dealing with sales taxes in dozens of different states, deciding how to report warehousing or inventory costs, filing timely tax returns, or locating the most suitable software for e-commerce/retail office supplies company tax planning, we can get assist you. Don't let the harsh realities of conducting an online business keep you from reaching your goals. We offer tax planning and preparation, bookkeeping and CFO business advisory for e-commerce/retail companies. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
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