Ecommerce Businesses & Corporate TaxWe provide a flawless accounting service that specialises in ecommerce and helps you understand exactly where your business stands.
Every year, your company goes through the following accounting journey…
It starts with bookkeeping: collecting, categorising, and recording each and every transaction your business carries out.
Which is why traditional accounting does not work.
Ecommerce businesses tend to have a higher transaction volume, and a wider range of sources to pull data from than traditional commerce.
It’s not unusual for a large traditional businesses to only use one bank account for both its sales and purchases. Whereas, it is common for a relatively new ecommerce business to be doing much, much more.
You can make multiple sales on Amazon’s multiple marketplaces, across different continents, at the same time. Not to mention other platforms like eBay, Shopify, and Magento. And it does not stop there.
At the same time as you are receiving orders from all over the globe, you might be making purchases from a variety of sources using your bank account, PayPal, or even an FX account (e.g. WorldFirst).
A traditional accountant’s slow and methodical manual system is a breeding ground for human error and it can not keep up with your growth.
You need an accountant who specialises in ecommerce and has experience dealing with multiple platforms at the same time.
2. Accounts Preparation
This is where we transform from bookkeepers into accountants.
Every year, your limited company has to provide statutory accounts and its corresponding financial statements to Companies House.
The following must be included:
- Balance Sheet: Everything your company owns, owes, and is owed at the end of your financial year.
- Profit and Loss Account: Outlining all of your sales and expenses your business had during the financial year.
- Notes to the Accounts: You can only fill this out if you are fluent in technical accounting language, because they need to be prepared according to New GAAP (New General Accepted Accounting Principles): a set of rules covering the details, complexities, and legalities of your business and corporate accounting.
- Director’s Report: A document detailing the state of your company’s compliance with a set of financial, accounting, and corporate social responsibility standards. (This is not required if you are a micro-entity).
Important: If you file your accounts late, you will risk facing penalties of over £1500.
However, once you become our client, we will add you to our meticulously managed workflow. You will never have to worry about late filing penalties (unless you ignore us for months at a time).
3. Corporation Tax
If your company is based in the UK, you have to pay Corporation Tax on all profits from the UK and abroad. After we have drawn up your financial statements, we will prepare your corporation tax return (known as form CT600).
Here is how it works:
- We analyse your profit and loss account, calculating which capital allowances you are liable to claim and if your business has any chargeable gains.
- Using these figures, we calculate your corporation tax liability way before your payment deadline.
Important: If you file or pay your Corporation Tax Return late, you’ll face penalties–potentially heavy penalties.
Luckily for you, once you retain our services, you will never have to worry because we make certain all your forms are prepared and filed with the HMRC on time, every time, with minimal fuss.
Once this process is complete, our journey together resets and you get ready for another successful year of growth and fuss-free accounting.
4. Tax Advice
Throughout the year, it is almost guaranteed you are going to have queries. And we believe it is your right as a paying client to have all your questions answered without worrying, “how much is this going to cost me?”
That is why we do not charge for ad hoc calls or charge by the minute on queries.
You are 100% free to ask your personal Accountant as many questions as you want. Meaning, you can relax knowing your monthly bill will never increase because you have called or emailed us.
But, our advice does not stop there, we are proactive accountants. If we spot an opportunity where you could improve and grow your business, we will let you know.
Ecommerce Accountants LLP
1 Mark Square
Telephone: 020 7520 2676
Registered Company Number: OC413282
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