If you own a web store, then you’re probably aware of all the accounting challenges that come with it. Let’s take a squiz at 5 such common challenges and how to overcome them.
Has your web store run into these 5 accounting challenges – Auckland Accountant Tips
1. Having to do international transactions
Web stores deal with more international transactions than physical stores. Adding them into the accounting process can be a bit of a mare.
Implement multi-currency payment gateways, automated currency conversion tools, and cutting-edge tax compliance software that can handle cross-border tax calculations.
You can also outsource tax functions to professionals who know how to handle cross-border taxes. Drop your email in the chat and we’ll send you our Ebook which explains why you should consider outsourcing.
2. Complicated inventory management
Often web stores deal with different seasonal demands and preferences as well as global supply chain issues.
You can implement a robust inventory management system and use data analytics to forecast demand spikes and troughs throughout seasons in different parts of the world.
Real-time tracking and reporting software as well as batch and expiry tracking systems can also be helpful.
3. Tax compliance issues
To better deal with international taxes and GST, kiwi small business owners can implement robust accounting software.
Consulting tax experts who have experience with GST and cross-border taxes is a great solution too.
You can also use alerts and email subscriptions to regularly keep up with changing tax laws worldwide.
4. Payment gateway and platform integration challenges
For payment gateway integration challenges you can use an Ecommerce platform with global integration like Shopify and WooCommerce.
When selecting a payment processor, choose one that has international expertise like Paypal and Stripe.
5. Problems with refunds and chargebacks
To deal with the sheer volume of refunds and chargebacks, implement clear refund and return policies that cover local and international markets.
Automated return processes, clearly set out chargeback handling processes, and successfully implemented chargeback prevention tools are other good solutions.
Additionally, make sure that you have a refund reserve to settle urgent refunds and chargebacks smoothly.
We’ve got you covered – NZ Accounting Services and Auckland Small Business Accounting
Accountsdept is a chartered accountant firm with a pool of highly qualified professionals. We’re a leader among NZ accounting firms with over 8 years of experience and with us, your web store’s accounting and bookkeeping functions will be in reliable hands.
Interested? Drop us a message in the chat and we’ll take it from there.