Ecommerce
What we focus on for ecommerce businesses
Most of the accounting work in an online store sits in two places: the platform payouts coming in and the stock you hold.
Payouts and GST
A Shopify or PayPal payout arrives net of fees and refunds, so it rarely matches the sales figure on its own. We set up Xero so each payout splits into sales, fees, refunds and GST, then lodge your BAS from those numbers.
Trading stock
Stock is a tax figure as well as a warehouse one, because an increase in its value over the year is assessable income and a decrease is a deduction. We value each item at cost, market selling value or replacement value.
Our approach to ecommerce
How we approach ecommerce accounting for established online retailers
Each sales channel brings its own GST rules. We bring them into one set of books.
Domestic sales count toward the $75,000 GST turnover threshold, and so do export sales, which are GST-free only if exported within 60 days of payment or invoice.
As an accountant for ecommerce businesses, we reconcile each platform’s payouts back to its sales reports, and we build freight and customs duty into the cost of imported stock. Your BAS and tax return are then lodged from figures that hold up.
Xero mapped to each channel
Through our bookkeeping and Xero support, we connect Shopify and other gateways so payouts match your bank account, with fees, refunds and GST already separated in your ledger.
A stocktake only when needed
If you are eligible and estimate in good faith that stock changed by $5,000 or less, no formal stocktake is required.
Peak season forecasting
We forecast cash flow around peak trading periods, showing how much cash a stock order will tie up before you commit.
Structure and succession
For family-owned retailers, we review structure, asset protection and payroll tax as wages grow, then plan the succession and exit steps and valuation ahead.
When does an online store need to register for GST in Australia?
When GST turnover reaches $75,000, measured over the current month and previous 11 months, or the current month and next 11. You then have 21 days to register, and registering late can leave GST owing on past sales.
Do I charge GST when I sell to overseas customers?
Exported goods are GST-free if they are exported within 60 days of payment or invoice, whichever comes first. Those export sales still count toward your GST turnover, and registered sellers can still claim credits on the related purchases.
Do I have to do a stocktake every year for my online store?
Not if you are eligible for the simplified trading stock rules and estimate in good faith that stock value changed by $5,000 or less. You must be able to explain and prove how you made that estimate if asked.
How should an ecommerce business value its stock at the end of the year?
The ATO allows cost, market selling value or replacement value, and you can choose a different method each year for different items. Cost can include freight, insurance and customs duty, while claimable GST is generally left out.
How do Shopify and PayPal payouts get reconciled in Xero?
Xero’s Shopify integration brings in sales for each payment gateway and matches each payout to the deposit in your bank account, with fees and refunds split out. Sales can come in as one daily summary or sale by sale, and we set it up to suit the level of detail you need.
What records does an online store need to keep for the ATO?
Records that explain every transaction, generally kept for five years, including platform sales reports, payout statements, supplier invoices and import paperwork. Your ledger should reconcile to each platform’s reports and to your bank account.
What extra costs apply when I import stock from overseas suppliers?
Imported goods valued over $1,000 need a full import declaration and an import processing charge, and may attract customs duty depending on the goods and where they come from. Duty, charges, freight and insurance form part of the stock’s cost price, while GST paid on the import is generally claimable as a credit.
When does payroll tax apply to a growing online retail business in Queensland?
Queensland’s threshold is $1.3 million in annual Australian taxable wages, combined across grouped businesses, though you may need to register below it. We handle registration and lodgement through our business accounting and tax compliance work.
