This service is specifically designed for UK‑based online sellers operating on platforms such as Amazon, eBay, Etsy, Shopify, and others. E‑commerce accounting has its own unique complexities – multi‑platform data integration, inventory and cost matching, cross‑border sales tax issues – which often frustrate sellers. We have deep expertise in this sector and use specialised tools to provide accurate, professional accounting and reporting.
Multi‑channel Sales Data Integration and Transaction Recording – We use leading e‑commerce accounting tools (A2X, Linnworks, or Link My Books) to automatically import transaction data from all your sales channels into the accounting system. Every order’s revenue, platform fees, advertising costs, shipping costs, refunds, and chargebacks are recorded and classified individually. We generate monthly transaction summaries clearly showing each platform’s sales, fee structure, and net income.
Inventory Accounting and Cost of Goods Sold (COGS) Calculation – We help you set up an inventory management system, valuing stock using FIFO or weighted‑average methods. We calculate COGS monthly to ensure accurate matching of revenue and costs (the matching principle) and provide inventory turnover analysis and slow‑moving stock alerts.
Bank and Payment Gateway Reconciliation – We reconcile your bank accounts, PayPal, Stripe, Amazon Seller Central, and other payment channels automatically, ensuring every cash inflow and outflow is fully recorded. Special attention is given to verifying platform settlement reports to confirm the accuracy of platform deductions.
Cross‑border VAT Management – If you sell cross‑border (e.g. to EU consumers), we identify the VAT registration and filing obligations in each country. We assist with UK VAT returns, EU OSS returns, and monitor distance selling thresholds to help you avoid account suspensions due to non‑compliance.
Monthly Management Reports and Business Analysis – Each month we deliver customised e‑commerce management reports, covering: revenue and profit analysis by platform/SKU, average order value (AOV), customer acquisition cost (CAC), return and refund rates, and gross/net margin trends – all compared with prior month and prior year to identify growth trends and potential issues.
Annual Financial Statements and Tax Optimisation – We prepare year‑end accounts under UK GAAP and complete Corporation Tax filings. We proactively identify tax reliefs available to e‑commerce businesses, such as Annual Investment Allowance, R&D relief (if you develop proprietary technology), and provide personal tax planning advice on dividend extraction or self‑employed profits.
Platform Tax Enquiry Support – If you receive a tax enquiry from HMRC or a platform, we provide end‑to‑end support, preparing all necessary ledgers and transaction data, and communicating with the authorities on your behalf to minimise disruption to your operations.