What an ecommerce accountant does

The core work is the same

Any business needs its yearly accounts and tax returns done, whether it sells online or not. A sole trader sends a Self Assessment return; a limited company files accounts and a Company Tax Return. What an accountant does covers this. This page is about the extra work.

The extra work selling online can bring

Work an accountant may do for an online seller, beyond accounts and tax returns

Area	What it involves
Matching payouts to sales	Marketplaces and payment apps pay out money after taking fees, refunds and other deductions. Someone has to split each payout back into sales, fees and refunds so the accounts show the real figures. See Matching marketplace payouts to your sales.
Stock and cost of sales	Working out what the stock you sold cost you, and what is left at the year end. A limited company must keep records of its year-end stock and the stocktakings used to work out that figure.1 See Stock and cost of sales.
UK VAT	Watching your taxable turnover against the VAT threshold, VAT returns, and knowing which marketplace sales the marketplace accounts for. GOV.UK says that for goods in the UK when sold, a marketplace is liable for the VAT on goods sold by overseas sellers, and a seller established in the UK is liable itself.2
Selling abroad	Sales to customers in other countries, and stock held in other countries, can each bring VAT registrations or returns outside the UK. See VAT for online sellers and Amazon FBA and stock held abroad.
Software and links	Connecting your shops and marketplaces to accounting software, so sales and fees come in without typing them. For VAT, GOV.UK says you must keep some VAT records digitally unless you are exempt, using compatible software or other software, like spreadsheets, that connects to HMRC's systems.3
Figures during the year	Some firms offer monthly figures by channel or product, to show which sales make money once fees, delivery and refunds are taken off. This is an extra, not something every firm includes.

What it doesn't include unless you agree it

Day-to-day bookkeeping, VAT registrations in other countries and monthly figures may be priced separately or not offered at all. Firms set their own lists. Ask for the work the fee covers in writing, and what costs extra. What a fee should include has a list to check against.

Some questions, such as where to hold stock or how to set up a business that trades in several countries, may need a tax adviser as well. Some ecommerce firms have tax advisers in-house; others refer that work out. See Tax adviser.