While your e-commerce business might feel different from a traditional brick and mortar business, the law and IRS will treat you in much the same manner. In fact, you might have additional regulations that you are subject to. E-commerce businesses should work with a tax professional to make sure that they are on top of their tax obligations and prepared for the expenses that they might incur.
Get Things Right
One of the biggest reasons why e-commerce businesses should work with a tax professional is to benefit from their expertise. Tax pros know the law inside and out, which makes it much faster to have them prepare your taxes and help with tax planning. Because sales tax rates online are constantly changing, it makes it even more critical to work with a professional to avoid fees and fines that can occur from getting it wrong.
How E-Commerce Businesses Are Different
E-commerce tax requirements are constantly changing, and even if you have experience collecting sales tax in the past you might be unprepared for doing so digitally. E-commerce businesses should work with a tax professional to ensure they do not make the most common compliance mistakes, which include:
- Not collecting tax at all and not filing as a result
- Confusing the collection rules for different states and not submitting the taxes to the right place at the right time
- Reporting the wrong tax breakdowns to the different states or the IRS
Because things can vary across state lines, there could be 50 different sets of sales tax regulations that you need to understand depending on where you sell your products online. We can help properly collect sales tax based on a variety of factors, including the physical location of your business, the location of the sale, any affiliates who might also be selling your products and more. E-commerce businesses should work with a tax professional like MKS&H to ensure that they are on top of the latest laws and regulations and ready to file correctly and on time in the future. We work with businesses of every size and in every industry.
Get Updated Bookkeeping and Accounting Records with Help from MKS&H
MKS&H provides tax and accounting services to businesses of every size and in every industry. We can work with you to determine the best way to update your records, plan for the future, budget and more. Contact us today for a consultation.
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.