By now, your eCommerce business is likely no longer a side hustle but instead has become a part- or full-time job. And with an increase in sales comes an increase in responsibilities – as well as complexities. The biggest problems you are probably facing are likely the processes and systems that set the foundation for any successful business.
Sure, both options can build wealth for retirement. But understanding the details of each plan type—like contribution guidelines and tax treatment—is crucial before making this important decision.
Keep reading to learn how each type of plan works and what questions to ask, so you can make the best decision and maximize your savings and earnings over time.
Is this you?
- ❓ Your eCommerce business is expanding rapidly.
- ❓ Maybe you’ve left your job to focus on your online business full-time.
- ❓ Your eCommerce business is booming, and keeping up with your back-office work is becoming a bigger time-waster.
- ❓ You’re considering hiring other people to help you run your business.
- ❓ Your profit is growing, and you don’t want to pay more taxes to the IRS.
💡 You can see what’s happening in your sales...
And you can track your profits (mostly), but you’re not sure what you don’t know in order to make strategic decisions that will allow you to continue reaching your goals.
Maybe you want to get advice about how your business is doing regularly?
Maybe you want to look forward to Dec 31st, making sure you minimize your taxes as much as legally possible… because this year, you promise not to extend to the Oct 15th extension date and get your taxes done before Q4 begins.
Speaking of Q4, where historically the majority of online sales are made, cash flow is one of your main concerns. Though you’ve considered asking your bank for a loan or line of credit, you’ll need financial statements and documents compiled that are necessary for loan approval. Moreover, tax season is coming up, and you’re concerned that you won’t be prepared to take on yet another task with everything else you have to do daily. You’re not even sure what you can and cannot write off at the end of the tax year.
The building pressure to file your taxes correctly could easily be alleviated by harnessing the knowledge and expertise of a CPA. We can review your year-to-date and determine what can be legally deducted from your taxes, saving you money and also providing some priceless peace of mind. But a CPA’s time, money, and energy-saving abilities extend far beyond tax administration.
There are also sales taxes to consider. Compounding tax concerns is also likely a growing concern over state sales tax rulings and how they apply to your business.
💡“The expansion of eCommerce has generated a series of problems and risks regarding taxation and accounting…”.
And now, with the United States Supreme Court ruling of Wayfair, sales taxes have become more complicated than ever before. In short, you may be finding yourself overwhelmed, overworked, and overburdened.
We can advise you on the confusing sales tax laws and disparate sales laws. “[The accountant] should know the states where his company does business and the related laws for each state.” In 2018, in South Dakota v. Wayfair, Inc., the United States Supreme Court ruled that states may charge sales taxes on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state.
❓ Do you know if you are required to charge sales taxes in all of the jurisdictions you ship to?
❓ Did you know shipping your items into an Amazon warehouse creates Nexus and can qualify you to collect sales tax?
Each state has implemented its own regulations governing this issue, leading to confusion, complexity, and compliance risks. Make sure you’re utilizing the best software to manage this. We can help you interpret jurisdictional sales tax laws so you’re not audited and have to end up paying these sales taxes yourself.
And it’s not just sales taxes that get complex. Your business and personal income taxes are becoming more complex as your business grows too. We can help make sure you’re keeping more of your hard-earned money in your pocket, not overpaying the IRS or state any more than you legally have to.
You also may be considering hiring a contractor or employee as you ramp up Q4 sales.
❓ Does your contractor qualify as an employee, per state labor laws?
❓ Do you have contractor/employment agreements in place?
❓ Have you considered expanded insurance coverage as you look to bring people on to make sure you’re covered?
These are just a few topics we can help advise you with as you grow. Once you start making ‘real’ money, you should invest in solid, accurate, and advisory accounting that can not only keep you in compliance but can help show you how to make more money with less effort.
This goes beyond basic transactional accounting and payroll work. We can help you to utilize cloud-based accounting solutions to organize, sync, and analyze your data for advisory and strategizing with you to meet your goals.
At this point in your business’s growth, a CPA can not only ensure that your taxes are filed correctly and timely – and that you’re paying as little as legally possible – but can also add enormous advisory value as your strategic partner.
Ready to take your eCommerce business to the next level? 🚀
At this point in your business’s growth, a CPA can not only ensure that your taxes are filed correctly and timely – and that you’re paying as little as legally possible – but can also add enormous advisory value as your strategic partner.
Contact us today to schedule a personalized consultation. Let’s strategize together to keep your profits growing and your stress levels low.