E-commerce & Trading Accounting & Tax in Australia

Our Australian e-commerce accounting services are designed for businesses that buy and sell goods in the local market:

• Direct-to-Consumer (DTC) Brands: Australian brands using platforms like Shopify or WooCommerce to sell directly to a national customer base.
• Amazon FBA Sellers: Businesses leveraging Amazon Australia's fulfillment network, who need to accurately track FBA fees, inventory levels, and reconcile payouts.
• Importers and Wholesalers: Companies importing goods into Australia for resale, requiring expert management of customs duties and GST on taxable importations.
• International Brands Entering Australia: Foreign companies that have established an Australian Pty Ltd company to sell to local consumers and need guidance on local tax and compliance.

From your first product order, accurate financial tracking is key. Specialized e-commerce accounting becomes non-negotiable when:

• You Cross the GST Registration Threshold: Once your turnover exceeds AUD $75,000 in a 12-month period, you must register for GST and start filing Business Activity Statements (BAS).
• You Begin Importing Goods: This triggers the need to manage customs declarations and account for GST on imports, which can often be claimed back on your BAS.
• You Hold Significant Inventory: Properly accounting for the Cost of Goods Sold (COGS) is fundamental to understanding your true profit margin and is a requirement for accurate tax reporting.
• You Sell on Multiple Channels: Reconciling sales, fees, and payouts from your own website, Amazon.com.au, and other marketplaces becomes a complex task requiring specialized software and expertise.
• You Seek Financing for Stock: Lenders and investors will require detailed financial statements, including an accurate inventory valuation and gross margin analysis, before providing capital.

Outsourcing e-commerce accounting is a critical investment in compliance and profitability. Costs in Australia are based on transaction volume and complexity.

• Small Stores / Single Channel: AUD $800 - $1,800 per month. This covers bookkeeping, BAS preparation, and reconciliation for one sales channel.
• Growing Brands / Multi-Channel: AUD $1,800 - $4,500 per month. This typically includes management of more complex inventory systems and reconciliation across multiple platforms.
• Large-Scale Traders: Custom pricing starting at AUD $4,500+, often involving integration with advanced inventory management systems and strategic advice on supply chain financing.

The Australian e-commerce environment has specific compliance risks that can lead to significant financial penalties:

• GST Non-Compliance: This is the biggest risk. Failure to register for GST when required, or filing incorrect BAS, can lead to substantial penalties and back-taxes from the Australian Taxation Office (ATO).
• Incorrect Customs Valuation: Improperly declaring the value of imported goods can lead to fines and delays at the border.
• **Inaccurate COGS and Inventory Accounting:** Incorrectly valuing inventory leads to a flawed profit figure, which can result in overpaying company tax and is a major red flag during an ATO audit.
• Marketplace Reconciliation Errors: Failing to correctly reconcile payouts from platforms like Amazon can mask hidden costs, high refund rates, or even fraud.

E-commerce finance is a specialized field. Most general accountants lack the specific knowledge to handle GST on imports, multi-channel inventory systems (like Cin7 or DEAR), and the complex fee structures of modern marketplaces. Hiring a full-time e-commerce finance expert is often too expensive for a growing brand.

Outsourcing to YourLegal's e-commerce finance team provides a cost-effective, expert solution. We utilize specialized software to automate GST tracking and BAS preparation, integrate with your inventory systems, and accurately reconcile all your sales data. This ensures you are always compliant with the ATO, have a clear view of your per-product profitability, and can make data-driven decisions on pricing, marketing, and inventory management.