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Accountants for online retailers

Selling online generates a lot of data and very little clarity. The accounts only become useful once the platform settlements are reconciled properly, and that is usually where we start.

AccountsHelp provides accounting and tax services to online retailers and e-commerce sellers across the United Kingdom, covering marketplace settlement reconciliation, stock valuation, VAT on cross-border and digital sales, and multi-channel bookkeeping.

What is different about this sector

Where online retailers need more than generic accounting

01

Marketplace settlements are not sales

A payout from a marketplace is net of fees, refunds, advertising and adjustments. Recording the payout as turnover understates both sales and costs, and produces a gross margin that means nothing. Settlements have to be broken back out.

02

Stock valuation

For a retailer, stock is usually the largest number on the balance sheet and the one most often wrong. Getting it right is what makes gross margin trustworthy and the accounts worth reading.

03

VAT on cross-border sales

Selling to customers in other countries, holding stock abroad, or using marketplace fulfilment can all create obligations beyond UK VAT. Worth establishing early, because it is expensive to unwind.

04

Multiple channels and currencies

A shop, a marketplace and a social channel produce three sets of records in different formats, sometimes in different currencies. Consolidating them consistently is what makes the numbers comparable month to month.

05

Returns and refunds

Return rates change the real margin substantially. If refunds are not tracked against the original sale, profitability looks better on paper than it is in the bank.

Common questions

Questions from online retailers

How should marketplace fees be recorded?

As costs, not netted off sales. A marketplace payout arrives net of fees, refunds, advertising and adjustments, so recording the payout as turnover understates both your sales and your costs and makes gross margin meaningless. The settlement needs breaking back out into its components.

Do I need to register for VAT in other countries?

Possibly. Selling to customers abroad, holding stock in another country, or using overseas marketplace fulfilment can create obligations beyond UK VAT. It depends on where your stock sits and where your customers are, and it is much cheaper to establish early than to correct later.

Can you work with Shopify, Amazon or eBay data?

Yes. We work with Xero, QuickBooks and FreeAgent, which connect to the main platforms, and we reconcile settlements back to the underlying sales, fees and refunds rather than posting the net payout.

Why does my profit not match my bank balance?

Usually stock and settlement timing. Money spent on stock sitting in a warehouse is not an expense until it sells, and marketplace payouts arrive net and in arrears. Both are normal, and both are why reconciled accounts matter more in e-commerce than in most trades.

General information about how we work with this sector, not advice for your circumstances. Any tax figures mentioned were checked against gov.uk and are set out with their sources on our tax dates and rates page.

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