Setting up an e-commerce store can be a useful means of starting a business without the overheads involved in a standard brick-and-mortar enterprise. While this might seem attractive for a startup, it is important to know that there are particular tax requirements for Australian e-commerce businesses.

If you are looking to start up an e-commerce business, here are some reasons why you might need a tax accountant in Geelong to ensure that you remain compliant and avoid underpaying or overpaying on tax liabilities.

Navigating Complex Tax Laws

The tax system in Australia can be fairly complex, so it pays to have an experienced and qualified tax accountant to help you navigate it effectively. They can help you unpack tricky tax laws such as those that apply to goods and services tax (GST) and income tax.

A tax accountant can also help you understand exactly what your tax obligations are and how to minimise your liabilities legally and ethically. By educating you on what the GST registration thresholds are, for example, you can address the unique complexities that come with owning a e-commerce store in Australia.

Claiming Tax Deductions

One of the silliest things you can do as a business is overpay on tax. This is revenue lost that could have otherwise been directed towards growing your business.

With a proper tax accountant, you can find the best ways to deduct tax and, thereby, reduce your tax liabilities. These kinds of deductions could include various business expenses, such as advertising, web development, inventory costs, and shipping expenses, to name a few.

By maximising tax deductions, you can make sure that your business reduces its taxable income and overall tax liability while remaining ethically and legally compliant.

Managing GST Compliance

GST regulations in Australia can vary depending on a variety of different factors, such as sales volumes, the types of goods that are sold, and also where your customer base is located.

A good tax accountant will help you make sure that your business charges the right amount of GST on all sales and that all GST returns are filed accurately and on time.

In addition, a good tax accountant will help you make sure that your GST refunds and credits are effectively processed and managed for maximum benefit.

Tax Planning and Forecasting

Aside from helping you manage your taxes in the present, a tax accountant can also play a valuable role by providing insights into your business’s current financial health in order to help you plan your taxes going forward.

Analysing past financial data and looking at projected growth trajectories can provide a tax accountant with the necessary information to develop a valuable tax strategy that can optimise your cash flow without jeopardising your compliance.

This kind of proactive approach is essential to helping e-commerce businesses avoid surprises and make more informed decisions to support financial growth.

Infuse Advisors & Accountants offer expert accounting services to Australian e-commerce businesses. If you’re interested in an ethical, customised strategy that minimises your business tax burden, get in touch with our certified tax accountant in Geelong today.