As much as it looks like an easy and highly profitable venture, running a Shopify store in the UK is actually no straightforward approach. Amidst all the tasks of inventory management, product marketing, and following up appropriately with customer demands, the actual heavy and messy afterthought is with accounting.
However, having ties or hiring the right accountant expert who has been in the field for years and understands all the minute intricacies of the ecommerce realm and Shopify is vital. That is if you have wanted to be in this e-commerce line for a long time. Therefore, this piece shall
look into the factors that you can consider and evaluate when hiring a Shopify UK accountant to ensure your business’s financial operations run smoothly.
First, why do you require a Shopify-savvy accountant?
Before we get to the factors for consideration, it is helpful to have a brief idea of why hiring an ecommerce accountant is necessary.
Understandably, ecommerce businesses face different varieties of unique challenges along the way to keep the company afloat. These challenges have a variable difference from those of traditional brick-and-mortar businesses. These can be understanding the complexities of Shopify’s fee structures or VAT obligations for cross-border sales. All these can be somewhat challenging for a familiar person or even an entrepreneur to understand correctly.
That is why a Shopify UK accountant is needed, as they are aware of and rightly understand the ins and outs of the ecommerce ecosystem. They can assist and advise you on several aspects, including:
- Track Shopify fees and integrate them into your business’s financial records.
- Staying compliant with applicable UK tax laws and VAT requirements.
- Managing complicated inventory systems.
- Offering personalized advice to scale your online store.
By hiring a Shopify-savvy accountant, you generously save time and effort, avoid or minimize costly mistakes, and also obtain valuable insights to fuel your growth along with the business.
Factors to consider when hiring an ecommerce accountant
Now that you have an idea of the necessity of hiring an expert ecommerce accountant to help you with your Shopify store, here are the key factors to look into when hiring one:
Expertise with ecommerce
Of course, the first thing to take note of when looking to hire an accountant is their experience in the ecommerce field. For that, ask about the potential clients they have worked with previously, either on similar platforms or Shopify itself. If they have, your potential Shopify UK accountant should have expertise on:
- Every possible nuance of multi-channel sales.
- How to integrate Shopify with essential accounting tools like QuickBooks.
- VAT on digital goods and cross-border sales.
If they are found to have adequate expertise on these matters, it is assumed that they can efficiently follow up with your business’s accounts management. They can also help spot opportunities and accordingly optimize your Shopify store’s financial performance.
Familiarity and experience with Shopify tools and integrations
A qualified and experienced Shopify accountant is efficient with Shopify’s integrations, analytics, and reports. For instance, popular accounting software tools basically help simplify the overall bookkeeping processes by importing all the store’s transactions directly into the existing data records. Hence, it is necessary to ensure that your accountant knows and utilizes these tools for better efficiency of streamlined operations.
VAT know-hows
Any ecommerce business must deal accurately with all VAT compliances. It is also one of the most tricky aspects of running a Shopify online store in the UK. So, a Shopify UK accountant must have a correct understanding of the following:
- Applicable and latest VAT thresholds for all UK-based and international sales.
- Reverse charge mechanisms.
- EU VAT OSS (One Stop Shop) for stores selling to European customers.
These concepts might be complex at first glance. That is why only those ecommerce accountants with a proven track record in the field can get things straight. Otherwise, failure to adhere to any of the VAT regulations may result in heavy fines or repercussions and reputational damage.
Experience with scaling businesses
The financial needs and complexities of the business are bound to increase as and when your Shopify store grows or expands. Here, you will need an ecommerce accountant who can help you scale things simultaneously, like:
- Managing payroll and employee benefits as your employees grow in numbers.
- Forecasting cash flow and profitability.
- Planning for business operations, such as international operations.
So, we suggest you find a Shopify accountant with sufficient expertise in working with businesses of varying categories to ensure that they can adapt and scale along with your store’s growth trajectory.
Transparent pricing
The pricing structure of accountants dramatically varies. Hence, you must enquire or discuss the probable accountant’s pricing structure beforehand. Some accountants work on fixed fees, monthly or annually, while some charge hourly rates depending on the services offered. After you sort the pricing structure, do not forget to align their fees with your budget and affordability. It is also safer to ensure any hidden charges, better if there aren’t any.
Lastly, to make the hiring process more transparent, get a total breakdown of the services you need and what they offer in their packages. This will help avoid any unnecessary surprises.
Strong and open communication skills
Accounting jargon is indeed confusing and often difficult to understand correctly, especially if you are new to the field and running an e-commerce business. A Shopify UK accountant can help you get the basics by explaining the financial concepts in easy-to-understand language or simple terms, along with actionable insights.
Furthermore, regular communication is essential to keeping every financial matter on track, whether via phone, video call, or email.
Proven track record
As mentioned briefly earlier, accountants with a proven track record in the ecommerce field are highly in demand. Other than looking into their previous clients’ testimonials, you can also enquire about case studies.
A strong and diverse track record illustrates the said accountants’s capability and strengths in handling the unique challenges of running an ecommerce business. Look for proof of how they have assisted and helped similar online stores with financial matters, boost cash flow, or scale effectively.
Last words
As a Shopify store owner in the UK, finding and hiring the right ecommerce accountant is one of the time-consuming decisions you have to make. Only a Shopify UK accountant with the necessary expertise can help you navigate through the financial complexities smoothly and push your business for growth. By considering the key factors above, you can choose your rightful accountant partner to support your online business.