Over the years, the shopping habits of consumers have rapidly evolved. They are now looking for new ways of enhancing their shopping experience with the help of technology. The pandemic has further added fuel to this changing trend, and millions of people now regularly visit e-commerce platforms. Amazon has become a household name because of the convenience it offers in online shopping. However, it has not only attracted consumers but also sellers from all over the world. After all, Amazon has more than 200 million customers that visit the platform every month.
You may be aware that Amazon has recently redomiciled its EU headquarters to Cyprus. The small island country close to Europe, Asia, and Africa has gradually become a hub for e-commerce companies. Thanks to the fewer regulatory interventions, excellent infrastructure, and tax benefits, several companies have already made this smart move. Hence, if you have products that you want to sell by joining the Amazon FBA (Fulfillment By Amazon) program, you must remember a couple of things during accounting for Amazon FBA in Cyprus. Have a look.
Update Your Charts of Accounts
You may already know that it is essential to update all the accounts you will use in your financial reporting. For example, some of the standard categories of charts of accounts are assets, liabilities, equity, revenue, and expenses. If you don’t update it, you may end up relying on inaccurate data and make poor financial decisions as an Amazon FBA seller.
Go for Accrual Accounting
While it is true that most small business owners start with cash-based accounting, opting for accrual accounting is the best thing that you can do to grow your business with the Amazon FBA program. Instead of consistent demand, there may be sudden sales spikes or inventory fluctuations in your e-commerce business. So, this type of accounting proves beneficial to avoid unpleasant surprises. It will also help you to get a clear picture of your actual financial position.
Run a Reconciliation Report
When you run a reconciliation report, you can spot inconsistencies (if any) between the bank and your credit card statements. It also helps in protecting your business from possible frauds. It will also give you actionable transaction insights that you can leverage to make informed decisions leading to higher sales achievement.
Moreover, do not forget to put your efforts to generate additional revenue streams as complete dependence on a single sales channel may not be enough to thrive your business during unforeseen circumstances. Now, doing all these things may take a significant amount of time that you can otherwise use in growing your business. So, it is wise to hire a professional from Online Solutions to do the entire legwork of accounting for Amazon in Cyprus.
At Online Solutions, we offer comprehensive eCommerce solutions, including real-time inventory management to order tracking and accounting to social media marketing. We make it easy for you from every aspect and help you to reach your consumers quickly. Only you need to send your products, and our professionals will take care of the rest.
