Accountants For
eBay Sellers

Monitoring the cash payments in and out is vital for any online business and for small businesses in particular. It's very easy to lose track of what is being paid, as well as the timings of those payments, leaving you at risk of being in the red.

Although you might still be making a profit, the overall picture is that your business is losing money. And while it's not always a bad thing, as there are dozens of reasons why this happens, it can cause businesses to fail. Also, it can lead to defaulting on loans or prevent lenders from investing in your growing business.

An Auditox accountant for eBay sellers will examine this issue thoroughly and implement a strategy to schedule your cash transactions in and out very carefully. This will keep your accounts in excellent health and help

Many eBay sellers operate as limited companies and must submit statutory accounts, or year-end accounts, to Companies House and HMRC.

This is a summary of your performance over the year and will include your balance sheet, profit and loss figure, a director's report and notes to explain what's going on.

Accurate accounting is essential here, as HMRC will scrutinise these figures carefully. That's why thousands of business owners hire an accountant to do the job for them, and that's fine.

But when you hire an Auditox accountant, you get something extra: a dedicated expert with inside knowledge of how ecommerce businesses - and eBay sellers in particular - operate. Using the best eBay accounting software, they will prepare your accounts and financial reports before sending them off to the relevant parties well before the deadlines.

Most eBay sellers are self-employed, meaning that they are an individual operating as a sole trader.

As such, they must complete a self-assessment tax return each financial year if their profits are more than £1,000*. Anyone who has been through the self-assessment process knows exactly how much 'fun' it can be!

We are aware of what it takes to run a successful eBay business, and we want to help you to focus on doing what you do best. That's why our specialist eBay accountants are happy to process your self-assessment returns for you, relieving you of the burden and giving you more free time.

*Even if your sales are only slightly above £1,000, HMRC may see your sales as 'trade' and expect you to register for self-assessment. In fact, the tax authorities monitor selling platforms like eBay to spot any sellers hovering close to the threshold. We can advise you on this matter if you have any concerns about your tax requirements.

You've got to pay tax for the sales on your eBay store, but there are ways of minimising your tax liabilities (tax planning) to make sure you only pay the minimum amount necessary.

While it's possible for anyone to take on this task, it's advisable to ask an expert, and few people are as qualified or adept at this job as our specially trained eBay seller accountants! They will explore all allowable avenues to reduce your final tax bill, meaning that you keep most of your money from eBay sales.

Sole traders and limited companies alike must pay taxes from sales on the eBay marketplace. More than this, they must ensure that they pay them on time and that all the information is accurate. If there's any hint of deliberately misleading data, you could be in serious trouble.

In addition, you must ensure that you follow all government and business regulations. And that includes those set by the selling platform itself. If you break any of the rules, you could risk financial penalties or be forced to close your eBay seller account.

Our eBay accounting experts will help you to abide by the rules and will offer advice to keep you on track.

Once your income from eBay sales passes £85,000 (the current VAT threshold), you must register for and charge VAT, and that means completing VAT returns.

Becoming VAT registered isn't too difficult, but we can still assist you if necessary. However, completing your returns can be a real headache! You'll need to tell HMRC how much VAT you have charged and how much you've paid to other businesses. You'll also discover how much - if anything - is due back to you, which can be paid by cheque or directly into your bank account.

What's more, you have to go through this process every quarter!

As hard as it may be to believe, Auditox accountants for eBay sellers actually enjoy doing this and will handle everything for you to make life easier.

Also, some business owners choose to register for VAT even though they are below the threshold, as there are some benefits to doing this. Our VAT experts are happy to discuss the pros and cons with you, based on your individual circumstances.

Making Tax Digital (MTD)

The government recently introduced the Making Tax Digital initiative in an effort to make things easier and save paper. In fact, it will soon be unacceptable to send paper copies of tax returns etc., and everything will have to be submitted online. You'll also need software compatible with the government's MTD system, and that's your responsibility.

Although the timetable was messed up by the fuss caused by COVID-19, things are back on track, and you'll be expected to comply with the MTD rules.

The fact is that very few people seem to be prepared for this eventuality, and this could be disastrous, resulting in missed deadlines, fines and, potentially, interest charged on top for each extra day!

Never fear, though - your Auditox accountant will ensure that you have the right software and that all your returns, statements, financial reports or data of any kind are sent on time.

Bookkeeping can be a chore, as it involves keeping an accurate, organised record of all your daily transactions in and out. Closely linked to cash flow, it allows you to keep control of income and expenditure to provide a clear picture of your financial position from day to day.

There are several methods of doing this, and the information is often used for business planning for future growth and investment.

Your personal accountant from Auditox will handle all your eBay bookkeeping tasks for you, and generate reports periodically to help you plan for the future.

If you're looking for ways to make running an ecommerce business easier, then look no further than our simple-to-use eBay business accounting software.

Although it's pretty straightforward, your dedicated eBay accountant won't drop you in at the deep end. They will get you up to speed and make sure you are comfortable with the system before leaving you to it.

Our accounting software avoids the need for manual data entry as you can integrate eBay, potentially saving you a lot of time and effort. This is very useful if you have numerous transactions! You won't need to waste time working out fees, adjustments or refunds, as this cloud-based software does everything for you.

We only provide the best accounting software, and your personal accountant will be available at all times to provide support and advice when you need it.

If you employ several staff, you'll need to run a weekly or monthly payroll process, which can be frustrating and time consuming.

This is another area in which Auditox excels, and we'll gladly take this process off your hands.

Dealing with expenses can be a minefield. You need to keep an accurate record of all expenses, as well as possess a knowledge of what is considered an allowable expense.

Thankfully, our expert accountants thrive on this kind of stuff! They'll get your expenses in order in no time, and help you to only claim for items that are allowed.