Selling on Amazon? What Your Accountant Wants You to Know
Selling on Amazon is big business. In 2018 Amazon Canada reported record sales noting, “Over 30,000 Canadian small and medium-sized businesses collectively exceeded over $900 million in sales on Amazon Canada’s online stores in 2018. Canadian small and medium-sized businesses also achieved over $2 billion in sales to Amazon customers abroad in 2018.”
In this time of economic change and the shift to working from home, you may be eyeing selling on Amazon as a source of income, or as a viable small business. If this is the case, there are some important things your accountant wants you to know.
Set up your accounting system before selling on Amazon
Your e-commerce business has the potential to grow quickly, especially if you are selling an in-demand item like masks or leggings. Be prepared by having a business account that is separate from your personal account. Also have a software program like A2X or Xero that is exclusively for e-commerce sellers. A2X, in particular, works directly with Amazon’s Seller Central – automatically applying things like FBA fees and discounts. You’ll save a lot of time by having all of Amazon’s unique bookkeeping features automated through A2X.
Work with an accountant that specializes in e-commerce
Different accounting firms specialize in different types of businesses. Some work mainly with large corporations, some with rural-based or agricultural interests, and some – like us at AF Accounting – focus on small and e-commerce businesses in Canada. For those selling on Amazon, having an accountant with knowledge of Seller Central; CRA’s views on e-commerce selling; and the tools to help you grow your business and remain compliant with taxes, imports, duties, and fees is priceless.
Your business is virtual – your accountant can be too
Selling on Amazon takes you out of the office, out of the 9-5, and into the world of small business ownership. Work with an accountant that offers services to match this new lifestyle. We offer virtual CFO services where we become your remote financial advisor. We can also set you up with cloud-based accounting software, or work with you over the phone and through online meetings. You need modern accounting solutions for your online business.
Don’t overlook your other accounting needs
Selling on Amazon could require a lot of new procedures. Based on what and where you are selling, you may need to collect and remit GST, deal with import duties, do payroll if you have staff, etc. However, don’t forget that your own taxes are due annually and that you need to ensure you are tracking income from all sources and are accurate in your reporting. Work with an accountant that can help with all aspects of your personal and business accounting.
Selling on Amazon? Contact AF Accounting
We pride ourselves on our flexible, modern solutions for busy small business owners, and we’ve worked hard to ensure our complete e-commerce seller accounting packages meet all your needs. If you are selling on Amazon in Canada, contact us today.