Remember that business plan from Phase 1?
This phase in your ecommerce business journey is the perfect time to assess cash-flow forecasts to plan for your business goals as you move into becoming a $1M+ online seller. This is where you present your current financial state, which helps with securing funding (if needed) and getting that commercial space you’ve had your eye on — because your house simply cannot handle another delivery.
Once you’ve acquired commercial space, you’re likely looking to hire additional people, if you haven’t already staffed up while working from home. Have you considered employment or contractor agreements? Benefits to keep talent motivated and working with your business? Additional insurance needs? These are all important questions as you grow your e-commerce business team from 2 to 10+ people. Your CPA is the best person to advise you on setting up payroll in a way that allows for expansion without cutting corners or missing employer regulations.
Tax strategy is another vital service your CPA can help with, especially as your profits are increasing rapidly.
A CPA also knows the deductions you can take as a small business owner and can maximize those deductions for you, minimizing the overall amount you have to pay on taxes.
Without professional, ongoing, forward-looking support, you might end up paying more taxes than you legally need to.
A CPA sets you up for success by forecasting cash-flow, determining estimated taxes to pay, and advising on deferred retirement options and personal wealth growth.
Speaking of strategy, strategic planning is the highest leverage benefit that a CPA brings to your business at this growth stage.
“In this third stage of the e-commerce lifecycle, reinvigorating your company’s momentum and growth should always be strategic.”
This is an area where CPAs excel, and you want a CPA who understands your e-commerce business.
Depending on your strategy or the direction your business is moving in, your CPA will make both short- and long-term predictions about your e-commerce future.
They will also provide advice specific to the phase your business is in now, as well as the phases you aim to reach. CPAs can provide you with a general managerial accounting background, plus access to the quantitative data you need to make well-informed business decisions. This may include setting profitability goals, creating acquisition strategies, and developing risk management processes.
As your business grows and you begin to move into Phase 4, a qualified and professional CPA team will provide you with invaluable insight and wisdom for your company’s goals. With retail e-commerce sales expected to reach $4.2 trillion in 2024, up from $3.5 trillion in 2019, the future is bright.
Why You Need a CPA for Your eCommerce Growth
If your goal is to continue growing your e-commerce business into Phase 4, you’re likely already seeking advisory and strategy help.
The right CPA firm is an invaluable expert to have on your advisory team, helping you strategize and reach your goals.
Ready to take your e-commerce business to the next level? Contact us and let’s get started on your journey to success.