Are you building your eCommerce empire and not sure if you’re finances are set up correctly? Maybe you’re not sure if you have the best options or saving the most money with your money set up? Or are you looking to expand and sell your products overseas? Then, check out our top tips on setting up the right structure for your eCommerce store.
1. Where’s your GST going?
So not every country has GST (lucky them), and many have their own sales tax. To ensure you’re not charging GST unnecessarily, at Bloom Money, we recommend you check where your products are going.
Make sure you know there is no GST on sales going overseas. For example, if you ship a product to the USA, there is no GST paid to ATO on this transaction.
2. Bank Fees Suck
You may be increasing your sales internationally, which is always a big win as there is so much opportunity globally. Things to look out for are extra fees for these transactional orders.
If you are doing many international transactions and want to avoid fees, make sure you are using a platform like Airwallex to reduce these fees.
How AirWallex works:
At Bloom Money, we recommend Australian created business AirWallex. It’s a platform that allows businesses to open multi-currency accounts without visiting a bank branch. AirWallex will enable enterprises to collect revenue from customers in their preferred currency and keep funds within that currency in bank accounts. This platform eliminates the need for unnecessary conversions, allows for better conversion rates, and businesses don’t incur bank fees. This is not sponsored, only good accounting advice!
For more info, check out Airwallex here
3. To GST or Not To GST.
Did you know not all of your merchants are charging you GST? It’s essential to check how your Merchant fees are set up and used in your accounting software. You need to go into Xero or QuickBooks and check your code in accounting software for each payment method.
- Shopify gateway (GST applicable)
- PayPal (GST free)
- Afterpay fees (GST applicable)
We’ve created a list of merchant’s fees and their status on GST to help you out! Click here to check it out!
4. Get an accounting system.
Xero, QuickBook and MYOB all sync with Shopify and most eCommerce platforms. This means each transaction goes straight into the accounting platform, which ensures ALL the transactions are accounted for and saves lots of time!
5. Are you thinking of going big?
It may be worthwhile setting up a company structure sooner rather than later!
If you start as a sole trader and want to move to a company later, you’ll have to pay sneaky stamp duty to transfer assets, plus it’s an admin nightmare. But of course, up to you.
We’re here to help.
If this is a little more accounting than you need in your life, we’re here to help. BLOOM Money offers bite-sized money coaching sessions to go through your accounting software to check everything is set up and charged correctly. We have Brisbane and Gold Coast offices but can meet you virtually if you prefer.
Click here to book your first session today.