Ecommerce Entrepreneurs: What to look for when choosing an accountant

Ecommerce entrepreneurs are unique. So, while the mandatory ‘numbers’ that must be collected, recorded, and reported to Government departments are the same as other businesses, the accountant you choose needs to be a little different from the rest too. Here are some specific questions that you should consider when choosing an accountant for your ecommerce business…

What makes Ecommerce Entrepreneurs different?

In the years we’ve spent working with ecommerce entrepreneurs, we’ve discovered that there are several attributes that make them a bit different to “traditional” business owners. If you work in ecommerce, we suspect you will recognise a few of these traits:

Tech savvy

It goes without saying that ecommerce owners are very tech savvy. They never shy away from trying new technology and if there’s an app that integrates a process, they want it! Alongside the ecommerce process are unique terminologies, abbreviations and expressions that are not widely used outside of the industry.

Online native

Ecommerce entrepreneurs operate exclusively online. All their business records are kept online, and they’d never consider having anything in a physical folder. Ecommerce entrepreneurs do most of their communication online. It’s very rare for an ecommerce entrepreneur to request an in-person business meeting.

Truly entrepreneurial

Ecommerce business owners are entrepreneurial in the truest sense. They’re enterprising, innovative, resourceful, and creative. They are willing to take a few risks and they are proactive. Their businesses make things happen; they don’t wait for things to happen. It helps that many ecommerce entrepreneurs are not held back by the obstructions or politics found in some more ‘traditional’ businesses.

Community-driven

Ecommerce entrepreneurs like to work in online communities, particularly on Facebook. In contrast to more ‘traditional’ business owners, ecommerce entrepreneurs are happy to share information with each other – apart from where they source their goods! – and they are keen to learn from each other. In these online forums, ecommerce business owners can get help, introduce contacts, and find new customers. Typically, there’s a refreshing spirit of camaraderie, friendly competition and a recognition that sharing information can advance the whole group.

However…

Even though ecommerce entrepreneurs are unique, the ‘numbers’ that you must collect, record and report – accurately! – to the relevant Government departments are the same as for every business owner. These include VAT returns, year-end accounts, income tax returns and other forms.

Your accountant should help you complete and submit these mandatory forms and returns and if you don’t understand what your obligations are as an ecommerce entrepreneur, then they should be explained to you. This is bread and butter for most accounting firms.

Key Questions To Consider:

And yet, the unique traits that we’ve identified above mean that if you’re an ecommerce entrepreneur there are several additional questions that you should consider when looking for an accountant…

1. Are they tech savvy?

You should choose an accountant who is tech savvy. They should recognise the software you use and understand the app stack you’ve chosen for your business. They should understand your processes and the main platforms and marketplaces that you could be using, whether it’s Amazon, eBay, Shopify or any of the other great marketplaces found across the globe. They should help you to use the requisite online accounting tools and apps and help you relate any of the information back to your own business.

2. Do they understand your terminology and speak your ‘ecommerce’ language?

You should look for an accountant who uses the same abbreviations and terminology you use. A good ecommerce accountant should understand what you’re telling them and be able to communicate in a way that you understand.

3. Will they meet you where you are?

You are an online native. More traditional accounting companies will expect to do most of their business in-person, but you should choose an accountant who will meet you where you are, who is willing to communicate with you online and who does not expect you to meet them face to face. You should choose an accountant who is easily contactable online and who is comfortable communicating with you remotely. You work remotely and you should expect your accountant to have the tools in place to accommodate you, not the other way around.

4. Do they understand the intricacies of ecommerce trading?

There are several accounting complexities associated with selling online that are not often found in more traditional businesses, particularly when it comes to VAT and international trading. Your accountant should understand these industry features and help you navigate the complexities. Your industry isn’t the same as others and you should be looking for an accounting partner who recognises that.

5. Do they recognise that each ecommerce business is different?

Although they share similar characteristics, each ecommerce business is different, and the same approach does not always apply to each business. Accounting rules are strict and there are different rules for each business depending on the types of products they buy and sell and the countries they trade in and from. There is a lot of misinformation out there and your accountant must advise you on the specific rules and schemes that can be used or applied to your business.

6. Do they participate in your online forums?

Many ecommerce entrepreneurs like to work in communities. You should look for an accountant who is active in these online forums, who is happy to answer any questions you have and is able to point you in the right direction. The best accounting partner will help you to find new contacts, potential new customers and even expansion opportunities. They should be happy to give you advice and shouldn’t be simply pushing you towards paying a fee at the earliest opportunity.

7. Do they have systems and procedures in place that support the way you work?

For example, do they have processes for all the passwords and two-step authentications they will need to access the raw data of your business? Do they have a log of the app stack your business uses? Are you happy to give them permission to log into your accounts and get the relevant data they need?

8. Are they like you?

Perhaps most importantly of all, as an ecommerce entrepreneur you need to choose an accountant who is like you. You want an accountant who is dynamic and entrepreneurial themselves. You want someone who speaks common sense, who is motivated by the success of your business, who understands your mindset, who is pragmatic, who is as proactive as you, and has experience in your industry. You definitely don’t want an accountant who is too old-fashioned, stuffy or condescending.

Consider The Uncommon Accountants

If you are an ecommerce entrepreneur and are looking for an accountant who can answer ‘Yes’ to all the questions above, then we’d be delighted to speak with you. You are uncommon, and so are we.

The Uncommon Accountants have worked with ecommerce entrepreneurs for many years, so we understand the common issues, problems, and challenges you face running an ecommerce business. Some of our advisors even have their own ecommerce businesses, so we practise what we preach.

We’re happy to advise many different types of ecommerce business, from subscription, dropship, wholesale models, to private label, p-commerce, or m-commerce businesses.

So, if you’re an ecommerce entrepreneur and have any questions about how we can help or if you have a specific accounting enquiry for your business, please get in touch.