E-Commerce

E-Commerce

E-commerce Accountants

Irrespective of the size and type of your e-commerce business your brand requires you to use intelligent financial information in order to maximise the growth of your e-commerce store.

MWA’s specialist accountants for e-commerce businesses are here to streamline your accounting needs and ensure you have the right data for all of your marketplace stores and online channels. We complete your bookkeeping digitally using Xero and can pull information directly from the back end of your website and marketplace accounts.

We can integrate our software with your content management system and provide a complete digital accounting solution giving you access to professional and efficient bookkeeping through to marketplace specific profit and loss and forecasting services.

We work with all different types of e-commerce businesses whether you are trading through your own website, other marketplaces such as eBay and amazon or TikTok shop we have a package suitable for you. We understand the different tax and selling implications of each channel and offer you tailored advice specific to your business.

Whether you’re turning over millions through your own website or making a passive income through a side hustle on Esty we have a solution bespoke to your needs.

Contact Us for a Quote

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  • Integrated accounting solution with your CMS or marketplace store front to provide real time financial information.
  • Inventory management and tax implications to help you maximise profit.
  • Always available for queries with a named contact.
  • Ensure your VAT is being recorded the most tax efficient way for your business model.

Why online businesses
choose MWA?

In the last few years, the landscape of the e-commerce marketplace has grown exponentially. At one point providing accounting solutions for e-commerce businesses was treated as being more similar to a bricks and mortar retail business which is no longer the case. The sheer volume of opportunities available have created huge subsections within the e-commerce marketplace all of whom need to be treated differently.

Where and how you buy your stock can have differing tax implication. Is it drop ship, fulfilled by Amazon, 3PL, is it a digital download or do you have your own warehouse? Or a combination of all of the above.

Now some e-commerce businesses need marketplace specific profit and loss accounts in order to accurately report on each channel and the differing product offering for each channel. What sells well on a Live on TikTok shop might be different to the website offering.

We understand the implications of all of the above and we have vast amounts of experience working with entrepreneurs and businesses of different types and sizes. We understand your unique challenges and want to help you get the most out of your business.

 
 
Book a Call

Bespoke packages
for e-commerce businesses.

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Side Hustle
Passive incomes such as digital downloads on Etsy or pre-loved sales on Vinted and e-bay.
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Own Website +/- Marketplaces
Selling volume through one or more channel such as TikTok shop or trading on Amazon FBA possibly holding some stock.
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Multi-Channel 
Larger e-commerce business with larger numbers of SKU’s, selling through multiple channels potentially on and offline with different types of stock holding.

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“…thanks for all your hard work looking after us for the last six years. Richard and his team have provided the company with excellent service...”

@sweet.mandarin

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"...MWA have never let us down. They have plenty of experience working with businesses in our sector and are well placed to provide knowledgeable and clear insight into our finances."

@honestcrustsourdoughpizza

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“…working with MWA has been a life saver...we're never more than a phone call away from practical business advice as and when we need it.”

@eatpicos

FAQs

One of the main things that you need to consider is how the marketplace’s fees affect your margins v maintaining your own website. We recommend tracking all relevant sales and costs between the different platforms so your internal management accounts contain separate P&Ls for each. 

The initial cost of creating the website (or any major rebuilds) are capital in nature and appear on the Balance Sheet. Tax relief is given under the Capital Allowances rules. Any costs for maintaining, hosting or updating are expensed through the P&L and tax relief is claimed at 100% in the year of expenditure.

If you’re selling  B2C you’ll need to make sure that you’re using the sale price net of VAT. Typical direct costs to calculate the margin might include item-specific Costs of Sale such as purchase costs, carriage in & out and selling commission, but also general direct costs such as sales staff, production labour, website amortisation & running costs. Each business might have it’s on variation of the standard categories.

European digital downloads from a UK seller have very specific rules. Each European country has it’s own VAT rate, NotHS will determine and charge this at the checkout. You will be responsible for registering , making returns and payments to the relevant authority for European vat in each country you sell in. Alternately, if you relevant sales are >€10k pa, or you voluntarily choose to, you can register for non-union MOSS in one European country (most people use Ireland as it’s easiest), and submit one return and make one payment to cover all of your European VAT requirements.

If your customer is a business with a VAT number, then there is no VAT.

No, these sales are ‘Outside the Scope of UK VAT’, although they do count towards your VATable income and should appear as net figures on your VAT Return.

If your European sales are <€10k pa, you’ll pay VAT based upon where the stock was at the time of the sale. If your European sales are >€10k pa, you must follow the VAT rules & requirements of the country where your buyer is based. If you register for EU OSS VAT, you can just submit one return and one payment to cover all of Europe.

Contact MWA Accounting

We're flexible let us know what works best for you...

info@mwa-accounting.co.uk 0161 826 5259