Looking to hire Etsy accountants? Find out your top considerations in choosing a professional to work with, so you can focus on creating instead of calculating.
What Should You Look for When Hiring Etsy Accountants?
When you love creating stuff, the best platform to sell your unique products is Etsy. Using this e-commerce platform allows you to reach the right target market. And when handcrafted or customised orders start to pick up, keeping your books in order becomes harder to manage.
At this point, working with Etsy accountants could be an excellent alternative to handling accounting and bookkeeping on your own. Find the right professional who can handle the minutiae of your business according to the following criteria.
Accountants are licensed professionals who pass a rigorous testing process after four years of formal education. Completing a bachelor’s degree in accounting means they have a solid foundation of the fundamentals, principles, and strategies. That’s why they can do more than bookkeeping, such as tax planning and cash flow management.
Look at the credentials of your potential Etsy accountants—do they have the base knowledge and training in handling critical operational tasks? You want someone who can solve problems and prevent them from happening in the first place.
While education is a must, experience is just as important, sometimes even more so. Your accountant should have experience working with e-commerce sellers because of the business’ operational differences with brick-and-mortar shops.
See if your accountant mentions dealing with or specialising in online retailers, specifically on Etsy. Compared to other e-commerce businesses, Etsy sellers deal with more complicated accounting.
Besides keeping track of the usual costs, such as shipping, marketing, storage, and taxes, they also need to monitor inventory and production—most Etsy entrepreneurs create products in limited quantities or per order basis.
Choose Etsy accountants with at least two years of relevant experience—the more experience, the better. It’s a bonus if they’re familiar with other platforms or marketplaces, as they can give you sound advice on branching out and setting up shop.
We at Sterlinx Global are accounting specialists for Etsy sellers. With our team of expert accountants, we will provide top-notch support so that you have more time and energy to scale up your store.
3. Services Offered
Before hiring Etsy accountants, figure out which services you’re seeking. Do you need someone to oversee your business’ entire accounting function, from bookkeeping to tax return filing? Are you looking for an expert on nexus and sales tax? How about tax preparation and planning?
Whatever your business needs or requires, your prospective accountant should be knowledgeable and skilled in these subject matters. Like other professionals, accountants also have areas of specialisation—their skill sets match the services offered.
It pays to know their expertise at the onset to vet your candidates early on. A good measure of your accountant’s competency is when they can explain jargon and principles in terms simple enough for people without an accounting background to understand.
As you’re already selling on Etsy, find an accountant who is as tech-savvy as you. The availability of various accounting software applications has made it easier for entrepreneurs to track their store’s financial performance. It can ease your accountant’s workload and has the added benefit of more accurate reports and transactions.
Ask your prospective accountant if they will have you set up with a good software solution. When you work with Sterlinx, we will provide you with free Xero software and training so you can have the basics covered.
5. Tax Preparation and Planning
VAT, sales tax, and income tax can weigh on your earnings if left unmanaged. And when you’re too focused on creating your products, you’re likely to overlook taxes, which can chip away at your hard-earned profits.
Work with Etsy accountants who help you identify claimable expenses and make strategic decisions throughout the year to maximise year-end deductions. Most entrepreneurs miss opportunities like write-offs, depreciation, home office rent, and other business-related expenses that can significantly lower taxes.
As an Etsy seller, you need to diligently track VAT and sales tax to comply fully with your markets. You should also be aware of the critical deadlines for remitting taxes and filing corresponding returns in every relevant jurisdiction. If you have an accountant, the burden of tax compliance falls on them.
Hire a professional who can provide proper tax planning and preparation. We at Sterlinx will sort out taxes for you so you can spend more time creating than calculating.
Getting an accountant is equivalent to extra expense, but the cost you’ll spend will pay itself through the value they provide to your Etsy business. However, it’s also vital to set a budget for hiring one.
Look for a professional that fits your budget. Factors like experience, credentials, and services offered determine how much they’ll charge you. While a good accountant need not cost you a lot, it doesn’t mean you’ll hire the one with the lowest charges. There would always be a trade-off, cost-wise.
Consider the amount of help you’ll need, so refrain from getting too caught up on their rates when you shop around.
7. Knowledge of Your Industry
Hire an accountant who understands how your industry works—e-commerce is entirely different from freelancing, retailing, and food and beverage. Your prospective Etsy accountants should also know how the platform varies from Amazon, eBay, or Shopify.
The right accountant for your business can identify trends, patterns, and errors specific to your niche, which are critical to your store’s success. Remember, they can see beyond the numbers, and their invaluable insights will help improve your bottom line.
8. Client Feedbacks
Just because they have the credentials and experience doesn’t mean they’re the right fit for your business.
Before working with Etsy accountants, do your due diligence by reading reviews about them. A quick Internet search will pull up feedback from their previous and current clients. And if you know someone who worked with your prospective candidates, ask about their overall experience.
Frequently Asked Questions
Is it worth getting an accountant when I’m only an Etsy seller?
Yes. Being an Etsy seller isn’t easy—creating orders already takes a significant chunk of your time, so you’ll have less for doing your accounts. When you hire an accountant, they will do more than file taxes. They can advise you on how to make your shop earn more.
How do I find Etsy accountants?
Begin your search on the Internet to find a professional near you. Opt for a firm with experience working with Etsy shop owners instead of those offering general services. We at Sterlinx specialise in e-commerce sellers, making us more attuned to their needs.
When should I hire an accountant?
There is no single right time to get an Etsy accountant. They can help you at any stage of your business. So whether you’re just starting out or expanding to new markets, working with a professional ensures you’re on the right path.
The Bottom Line
Consider the above factors when evaluating Etsy accountants for your e-commerce business. Keep in mind that the best fit will primarily depend on what you need as a creative entrepreneur.
Work with Sterlinx Global to get started and scale up. Curious about how we can help you today? Check out our tax community forum, podcasts, and e-commerce videos.