eCommerce Business Stages – Profits Under $100,000
Not sure if someone is a CPA?
Just search your state board of public accountancy and look up the person’s name. Most people who advertise themselves as “accountants” or “bookkeepers” are not usually licensed CPAs providing you with greater transparent protections.
A reliable, knowledgeable CPA is just one part of the equation; the other part is making sure your CPA understands eCommerce and its nuances. “Firms that can provide a differentiated value - beyond traditional compliance services - will have the upper hand as the industry continues to revolutionize." The kind of CPA you’re searching for should have the same priority as you: helping you reach your goals.
The first item on your agenda is to create a solid business plan. The U.S. Small Business Administration (SBA) agrees: “A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business.”
Moreover, your business plan is the initial document you can introduce to your CPA. A comprehensive traditional business plan usually includes the following sections:
• Executive summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Funding requests
• Financial projections
But, hey, let’s be honest—how many people actually do one of these business plans before starting a business? We’d say we’ve met very few in all of our years starting businesses who actually had one of these things. The most important is keeping an updated cash-flow forecast.
So, while it’s a good idea to have a plan, putting all of this work together is not necessarily needed to get your first online sale. Sometimes eCommerce businesses just happen. You buy some products, list them online for sale, and -- boom! You’re now a business making money. Just don’t forget to now also get a CPA.
Also, don’t forget about taking advantage of a third-party application that will help you to manage your multiple online selling channels; again, this is an area that we can direct you through. Many eCommerce businesses move quickly through the four growth phases, and you’ll want to be in the best position to succeed as your business expands and your needs increase.
For sellers with profits of $100,000 - $500,000
Get your eCommerce Business Off On The Right Foot. Contact Insogna CPA.