Accounting for Online Business, What is Required?

optimusgrime

Hi guys,

I will be launching an online store in the next month or two.

I have already set up a ltd company, have company bank account etc.

Now I believe at the end of each year I will need an accountant to sign off on the companies accounts.

What I'm looking to find out is what I need to be keeping records of, and in what way, so as to make it as straightforward/inexpensive from an accounting perspective.

I've been doing a bit of searching online but have not been able to find anything too helpful.

The business is going to operate quite straightforwardly. I will be taking orders and payments online, I will then be ordering the required goods from my suppliers and sending them out to customers.

My shopping cart software will keep track of all orders including vat breakdown on EU orders.

I'm just wondering if someone could advise on what else I need to be keeping records of and how I should do this so as to make it as easy as possible for an accountant.

Thanks in advance

gg1

Hi, I've been dealing with an accountant who has been really helpful and great at giving advice/tips to me as a new business on various aspects not just accounting. His name is Ralph @ DoMyBooks.ie. He is based in Galway but I'm in Dublin so it is not even an issue.
Anyway if you do decide to contact him tell him FirstDate.ie sent you..
Good luck with your new venture.

optimusgrime

Thanks for the tip, I'll get in touch with him and see what he says.

Any further advice would be much appreciated.

Thanks

Herbalist

There would be plenty that you could do yourself in terms of book keeping which you could then send to your accountant (provided the format works for you both) saving you from paying him to do the smaller tasks for you.

If you are selling online and recieving payment up from you will not have to worry about tracking customers aged debt and issuing invoices and statements. You could track things such as supplier invoices and payments plus your bank accounts and your bank reconcilliation yourself.

There are a number of free accounts packages out there such as Tas Basics, Gnu cash or xero that could look after these areas for you.

JJHOGAN2

My advice is simple. Some may sound obvious but you'd be surprised. Don't let the accounting part phase you. Your primary focus should be on sales

1. Be organised ie keep all invoice for purchases be they for resale or others such as utilities, travel expenses etc.
2. Find a 'pragmatic' accountant in your area who can help you on the right path (you appear to be there already).
3. Use one of the free accounting packages mentioned earlier.
4. Set aside a certain amount of time in the week / month to keep records up to date.
5. If you are considered a small business you don't need to have your accounts audited but it may be useful to have your 'pragmatic' accountant 'sign-off' based on what you have put into the accounts package plus some accountants adjustments.

Hope this helps. Best of luck.

John

sankari

I've been moving with the online accounting software, Numia. This free online accounting software enables you in recording and maintaining your transactions for all the business..

amen

Keep all Bank statements, all documentation from CRO, Revenue etc.

Make a photocopy of anything you send to Bank, Revenue, CRO etc.

If you pay an invoice write on the invoice date paid, amount, how it was paid, cheque/ credit card etc and if a cheque the cheque number etc