When you sell a product through the world’s top ecommerce site, you’ll need help with the accountancy issues that arise. Here, JAMES ALLSOP from our Accounts Department offers some vital guidance for Fulfilment by Amazon (FBA) sellers.
No platform rivals Amazon for its reach when it comes to e-commerce, so if you’re looking to build an online business, it’s a natural place to gravitate. Perhaps you’re signed up as a FBA seller and have realised that you’re facing several complex accountancy challenges? If so, it may be a mistake to rely on the advice of generalists, who don’t have the inside knowledge needed.
Here at Page Kirk, we’re able to offer real support to FBA and pan-EU sellers, particularly in the challenging post-Brexit era on complex issues such as VAT. It will certainly pay to enlist the help of accountants with extensive knowledge of Amazon’s processes and here are just some of the key issues that you’ll need to bear in mind:
You need to keep on top of cashflow
Amazon only pays out to FBA sellers every two weeks, which means it’s essential for someone to be keeping a very close eye on cashflow within your business. Without the necessary control over cashflow, a business may struggle to pay creditors on time, especially if no payments terms have been agreed. This may also result in leading to potential problems sourcing products in the future if an FBA seller has a poor reputation paying suppliers.
You need advice on how to make the best use of apps
There is no end of software on the market to enhance your business potential and to integrate with the Amazon sales process. But how easy is it to see the wood for the trees? Finding the right apps can give you a real edge. With seamless integration, an FBA seller can offer a more positive experience to customer which may result in the possible increase of repeat customer sales.
You need to ensure Amazon sales are integrated seamlessly into your books
Cloud-based accounting packages have become more and more the norm, but you need to understand how to use them properly if you’re managing Amazon sales. Avoid costly or time-consuming errors by getting proper advice. With accurate and up to date financial records, an FBA seller can make informed decisions about their business and identify areas for improvement efficiently.
You need to get your VAT arrangements right
Are you a pan-EU seller on Amazon? If so, you’re supposed to register for VAT in every country sell from. If you find the process daunting and want reassurance that you’re complying properly with the regulations, it’s important to get professional support.
These are just a selection of the many benefits of hiring Page Kirk to provide Amazon accounting for your ecommerce business. If you want to know more, please don’t hesitate to contact us. Call 0115 955 5500 or email enquiries@pagekirk.co.uk.
Written by
James Allsop
Part ACA qualified accountant
BA (Hons) Accountancy and Finance (First Class)
Member of the Page Kirk team since 2020
James is a wizzkid with technology so he can ensure that your financial statements are well organised, secure and accurate.
Reviewed by
James Haywood ACA
Page Kirk Partner
ICAEW Chartered Accountant
BA (Hons) Accountancy and Finance (First Class)
Member of the Page Kirk team since 2011
James joined Page Kirk in September 2013 and qualified as a chartered accountant in 2016 after achieving a first in Accountancy & Finance at Nottingham Trent University. As part of his degree course James spent 12 months with the firm in 2011/12.
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The Page Kirk team is committed to providing content that adheres the highest standards for accuracy. We evaluate how the content of each article aligns with current financial procedures and standards. Therefore, the information presented in this article is accurate and up-to-date.