Ecommerce brings volume, fees from multiple platforms, stock to track and VAT that can get complicated fast, especially as you grow or sell across borders. Messy figures make every decision harder.
We help ecommerce sellers keep tidy cloud books, get VAT right and understand their true margins, so the business is built on solid numbers rather than guesswork.
The tax challenges ecommerce businesses face
- High transaction volume across several sales channels
- Platform and payment fees eating into margins if not tracked
- VAT registration, schemes and selling across borders
- Tracking inventory and cost of goods accurately
- Knowing your real profit, not just your turnover
What we help with
- Cloud bookkeeping on Xero or QuickBooks
- Sales and fees reconciled across channels
- VAT returns and the right scheme for your store
- Inventory and cost of goods kept accurate
- Management figures so you know your margins
- Year end accounts and company tax
Common mistakes to avoid
Judging the business on turnover instead of profit after fees and VAT
Leaving bookkeeping until year end when volume makes it a nightmare
Getting VAT wrong on cross border or marketplace sales
Not separating personal and business money from day one
Useful tax tips
- Connect your store and bank to cloud software so most bookkeeping is automatic
- Watch your margins after fees, postage and VAT, not just your sales
- Review VAT early, as crossing the threshold changes your pricing
- Keep stock records tidy so cost of goods is accurate
Example scenario
A Shopify store that finally knew its numbers
A growing Shopify seller felt busy but unsure if they were profitable. We set up clean cloud books, reconciled the fees from each channel and produced simple monthly figures. For the first time they could see their true margin and make pricing and stock decisions with confidence.
Frequently asked questions
Which software do you use for ecommerce?
We work with Xero and QuickBooks and connect them to your store and payment providers so most of the bookkeeping is automatic.
Do I need to be VAT registered?
Once your taxable turnover passes the threshold you must register, and there are points to consider sooner if you sell across borders. We review this with you.
Can you handle multiple sales channels?
Yes. We reconcile sales and fees across channels such as Shopify, Amazon and WooCommerce so your books are accurate.
Are you UK wide?
Yes. We work online with ecommerce businesses across the UK.