Shopify

Challenges faced by an E-commerce Accountant of Shopify Seller

Shopify allows you to create your own digital store even if you don’t have computer programming knowledge. This is one of the main reasons for its growing popularity. Let’s take a look at major challenges faced by a Shopify seller’s accountant – 

• Many Shopify sellers make incorrect calculations of their inventory cost. It is imperative that the cost of goods sold is determined for each SKU. Further, the sellers on many occasions erroneously miscalculate the cost of goods sold which affects the gross profit margins.

• After the ruling of the United States Supreme Court in the Wayfair case, the states are endowed with the power to impose a tax on those businesses without the physical presence (E-Commerce businesses) if in general they do more than two hundred transactions in that state. Thus, if the said limit exceeds, then it is mandatory for a seller to comply with the regulatory compliance of each such state. This in itself is a colossal task.

• Accurate reporting of sales data is a difficult task because the deposit received in the bank does not always represent true and fair view about sale. It contains adjustment for other variables like commission, fees, discount, returns, and scheme.

We provide a full array of financial services that help Shopify sellers combat these issues such as assistance with setting up and maintaining inventory systems, proper accounting systems, understanding your business performance, and staying  complaint with various rules and regulations.