Accounts for online sellers
Selling online can grow quickly, but the numbers behind it are often harder to read than they look. Payouts arrive net of fees, refunds and advertising costs. Stock may sit in your garage, a third-party warehouse or a marketplace fulfilment centre. Sales might come through several platforms in different currencies. Without a proper process, it is easy to know your turnover but not your profit. Fees also change regularly, promotions eat into margins, and returns can arrive months after the original sale, so a product that looks like a best seller may be making very little once everything is counted.
This page covers the overall accounts and tax for ecommerce businesses. For the VAT side of marketplace selling, see our online marketplace VAT reconciliation service, and for connecting payout data to your software, see ecommerce integrations.
Who we help
- Sole traders who have grown from a side hustle into a real business.
- Limited companies selling through Amazon, eBay, Etsy, Shopify and their own websites.
- Sellers importing goods and holding stock in more than one location.
- New sellers unsure whether they are trading and what they need to report.
- Dropshippers and print-on-demand sellers who never handle stock themselves.
What our ecommerce accounting covers
- Gross sales, not just payouts. Recording sales, fees, refunds and charges separately so your accounts show the true picture.
- Profit by channel. Reporting which platforms and product lines actually make money once fees, postage and advertising are included.
- Stock and cost of sales. Valuing stock across locations and matching costs to sales, using our stock accounting approach.
- Imports. Recording customs duty, shipping and import VAT correctly in your costs and VAT returns.
- Year-end accounts and tax. Company accounts and Corporation Tax, or self assessment for sole traders, plus planning for Making Tax Digital where it applies.
- Digital platform reporting. Marketplaces now report sellers' income to HMRC each year. We help you check that what you declare is consistent with what the platforms have reported, and explain why the figures may differ.
How we work
- Review your sales channels, payment providers, stock locations and current records.
- Set up a monthly routine for importing and reconciling platform reports.
- Prepare regular management accounts showing margin by channel, if useful.
- Prepare year-end accounts and tax returns, and flag VAT registration if you are approaching the threshold.
Clean monthly figures also make it far easier to talk to lenders, plan stock purchases ahead of busy periods such as the run-up to Christmas, and decide whether a new channel is worth the effort.
What we'll need
Seller account access through the platform's user permissions where possible, or downloaded settlement and transaction reports, payment provider statements, supplier invoices, import documents, stock records and bank statements. We never need your passwords.
Online sellers in Kent
We work with ecommerce businesses across Kent, from sellers working out of home units to brands with warehouses near the M20 and M2. Get in touch and tell us which platforms you sell on.
Frequently asked questions
Why doesn't my Amazon payout match my sales?
Payouts are made net of selling fees, fulfilment charges, advertising, refunds and reserves held back by the marketplace. Your accounts should show gross sales and each cost separately. Recording only the payout understates both turnover and expenses, which can affect VAT registration checks, tax returns and how lenders view the business.
Do marketplaces report my sales to HMRC?
Yes. Under the digital platform reporting rules, platform operators collect and report information about sellers' income to HMRC each year, and must give sellers a copy. Being reported does not automatically mean tax is due, but HMRC can compare the data with your tax return, so your figures should reconcile.
Should my online shop be a limited company?
It depends on your profits, plans for growth and how much you want to draw. A company can be more tax efficient at higher profit levels and separates business risk, but brings more admin and reporting. We compare the options using your actual figures before you decide.
How do you handle stock in fulfilment centres?
Stock held by Amazon or other fulfilment providers still belongs to you and must be included in your closing stock. We use the platform's inventory reports alongside your own records, adjust for damaged, lost or reimbursed items, and value the stock at the lower of cost and net realisable value.
Amazon, eBay and Shopify Accounting across Kent
We help clients throughout the county, including: