Basic eCommerce Profit and Loss Chart of Accounts

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One of the hardest industry when it comes to accounting and bookkeeping is eCommerce. Why? Because the market and trade is ever changing and has become complex overtime. It is better to have it setup by an expert for a clean start but if you want to do it yourself, then you got to start with something. The best route is to begin with your Profit and Loss Statement accounts because this will be the most used accounts in the course of your business.

What is a Profit and Loss Statement?
A P&L or Income Statement will show your Revenue, Costs and Expenses. The bottom line of this report will show you if you made a profit or a loss, hence, the name.

Here are the basic items you will get to see on a Profit and Loss Statement for ecommerce business.

This is not all-inclusive but this will go along way and you could add more accounts when needed. Just make sure to classify it correctly and be consistent with your recording.

If things get messy and you want to save time and money, contact us!

Do you need to file or send out 1099-NEC & 1099-MISC?

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Dear Clients and Partners,

Just want to share with you some tax-related matters for your information, this is about 1099-NEC and 1099-MISC.

What are these forms?
Form 1099-MISC (Miscellaneous Information) or Form 1099-NEC (Nonemployee Compensation) to:

  • Report payments made of at least $600 in the course of a trade or business to a person who’s not an employee for services (Form 1099-NEC).

-simply put these are contractors, project-based or self-employed individuals

  • Report payments of $10 or more made in the course of a trade or business in gross royalties or payments of $600 or more made in the course of a trade or business in rents or for other specified purposes (Form 1099-MISC).

-examples are rent paid for the year and fees to attorneys

  • Report payment information to the IRS and the person or business that received the payment.

Note that these are for US-based contractors and payees only, if you are outsourcing from anywhere in the world other than the US then you don’t have to file or send out these forms.

Let us know if you have paid these kinds of payees, so that we can generate reports for you that you can use for your business or send to your accountant.

Deadlines for submission to IRS:

  • 1099-NEC, January 31 either by e-file or by mail
  • 1099-Misc, March 1 if filed by paper and March 31 if filed electronically


For your US-based employees, you need to fill out Form W-2 and submit to SSA, IRS and employees on or before January 31.
Hope this information will be helpful.  Thank you!

All the best,
Melchie


IRS Key Filing Season Dates

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There are several important dates taxpayers should keep in mind for this year’s filing season:

  • January 14: IRS Free File opens. Taxpayers can begin filing returns through IRS Free File partners; tax returns will be transmitted to the IRS starting January 24. Tax software companies also are accepting tax filings in advance.
     
  • January 18: Due date for tax year 2021 fourth quarter estimated tax payment.
     
  • January 24: IRS begins 2022 tax season. Individual 2021 tax returns begin being accepted and processing begins
     
  • January 28: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
     
  • April 18: Due date to file 2021 tax return or request extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.
     
  • April 19: Due date to file 2021 tax return or request extension and pay tax owed for those who live in MA or ME due to Patriots’ Day holiday
     
  • October 17: Due date to file for those requesting an extension on their 2021 tax returns

    Source: irs.gov

When to Prepare 1099s and W2s

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Tax season is here!

Time to prepare your Form 1099’s and W2’s and send to recipients on or before January 31, 2022.

You need to file Form 1099-MISC for each person to whom you have paid during the year:

*At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
*At least $600 in:
Rents.
Prizes and awards.
Other income payments.
Medical and health care payments.
Crop insurance proceeds.
Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
Payments to an attorney.
Any fishing boat proceeds.

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Hope your books are already updated to be able to generate these reports. If not, we can help. Send us a message and let’s schedule a call.

Happy New Year!

Our Client Onboarding Process

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We made it easier for you! Our client onboarding process is simple and straightforward because we don’t want to waste our time and your time, either. Now, let’s dive in.

  1. You tell us what is your problem. You may contact us here.
  2. We give you the solutions you need and how we can help you.
  3. Sign the engagement letter. This is where the scope of work, limitation and fees are covered.
  4. Pay your first invoice.
  5. Our job starts!

Easy-peasy, right? We will be glad to have you on board!

Partner With US

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Hey, tax accounting firms and Enrolled Agents (EA’s)!

Year-end is fast approaching and bookkeeping for your clients is overwhelming, why not partner with us?

We can do the bookkeeping for you or your firm so that you can focus on preparing your client’s taxes, fast.

Contact us, anytime!

Why we are your best bet?

We don’t do tax services for clients. You will be sure we are not your competition.

We know accounting and bookkeeping so well through education and experiences.

We guarantee dedication and professionalism, just like how you do to your clients.

We deliver results. We have systems and processes in place to efficiently do the work.

We believe in long-term relationship that lasts. Together, we can achieve better.

Let’s go, win together!

Shopify’s Buy Now, Pay Later Option

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Most of our client’s sales have increased because of the “Buy Now, Pay Later” option. If you are selling on Shopify, this is highly recommended. Turn it on because…

☑️Customers will love your store for giving them options and convenient checkout.

☑️Increase your sales and minimize cart abandonment.

Enable it now! #ecommercesolutions #accountingservices #bookkeepingsolutions

Read more about it: https://help.shopify.com/en/manual/payments/shop-pay-installments

Welcome

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Hi!

We are glad you are here but our blog is still a work in progress as of the moment. Please come back soon!

If you are in need of accounting and bookkeeping services or have questions in mind, feel free to contact us. We will be more than happy to hear from you. Thank you for your understanding and have a great day!