Accountants for eCommerce & Retail Businesses in Hertfordshire
eCommerce and retail businesses face a unique set of financial and tax challenges: multi-channel sales, complex VAT rules across UK and international markets, inventory management, marketplace fees, and the cash flow challenges that come with high-volume, low-margin trading. Managing all of this whilst also trying to grow your business is genuinely difficult — and the cost of getting your VAT or inventory accounting wrong can be severe.
CoreAcc provides specialist accounting, bookkeeping, VAT, and strategic financial support to eCommerce businesses and retailers across Hertfordshire and beyond. Whether you sell on Amazon, eBay, Shopify, Etsy, or your own website — or operate a physical retail store — we have the expertise to keep your finances accurate, compliant, and growth-ready.
eCommerce VAT: The Most Common Problem We Fix
VAT is the single biggest compliance risk for eCommerce businesses, particularly those selling across borders. Key issues include:
- ✓UK VAT registration — required when taxable turnover exceeds £90,000 in any rolling 12-month period, or from the first sale for overseas sellers with any UK sales
- ✓Import VAT and customs duties on goods sourced from outside the UK (including post-Brexit changes to EU imports)
- ✓EU VAT — the One Stop Shop (OSS) scheme allows UK businesses to account for EU VAT across all 27 member states via a single UK registration
- ✓VAT on digital services sold to EU consumers (DAC7 reporting and Moss successor schemes)
- ✓Correct VAT rates — zero-rating for children's clothing and food, reduced rates for some products, and the distinction between zero-rated and exempt supplies
- ✓Amazon VAT Services and the Pan-European FBA programme — understanding your VAT obligations in each EU country where stock is stored
Amazon FBA & Marketplace Accounting
Amazon FBA (Fulfilled by Amazon) creates specific bookkeeping challenges because Amazon handles shipping, storage, and returns on your behalf — meaning your bank account and your actual sales revenue are very different numbers. Amazon's monthly settlement statements include sales, refunds, marketplace fees, FBA fees, advertising costs, and storage charges — all of which need to be correctly categorised for both VAT and profit purposes.
We use specialist integrations (including A2X and Xero/QuickBooks) to automate the reconciliation of Amazon, eBay, Shopify, and other marketplace data, ensuring your accounts are accurate and up to date without you spending hours on reconciliations.
Inventory Accounting & Cost of Goods Sold
Accurate inventory accounting is essential for eCommerce businesses to understand their true profitability. We help with:
- ✓Setting up inventory tracking in your accounting software
- ✓Correct treatment of cost of goods sold (COGS) vs. overhead expenses
- ✓Handling of import duties, shipping, and warehousing costs within inventory valuations
- ✓Stock write-downs and obsolete inventory provisions
- ✓Reconciliation of stock levels between your marketplace/e-commerce platform and accounting records
Cash Flow Management for Retail
Retail businesses — particularly those with physical stock — face significant cash flow challenges around stock purchasing, seasonal demand, and payment timing. We provide cash flow forecasting and working capital analysis to help you plan stock purchases, manage supplier payment terms, and maintain adequate cash reserves through peak and trough periods.
Who We Work With
- ✓Amazon FBA sellers and Amazon Vendor businesses
- ✓Shopify, WooCommerce, and Magento store owners
- ✓eBay and Etsy marketplace sellers
- ✓Multi-channel retailers selling across several platforms
- ✓Physical retail stores with or without an online presence
- ✓Dropshipping businesses
Frequently Asked Questions
Do I need to charge VAT if I sell on Amazon?
If you are VAT-registered in the UK (required when your UK taxable turnover exceeds £90,000), you must account for VAT on UK sales. The situation is more complex for cross-border sales. For sales of goods to UK consumers fulfilled from UK stock, standard UK VAT rules apply. For goods stored in EU fulfilment centres (such as Amazon PAN-EU FBA), you may have VAT registration obligations in multiple EU countries. This is a complex area and we recommend getting specialist advice early.
How do I account for Amazon FBA fees?
Amazon FBA fees — including fulfilment fees, storage fees, and referral fees — are deductible business expenses. They should be captured from your Amazon settlement reports and coded correctly in your accounting software. A common mistake is to treat the net settlement amount (after all fees) as turnover — this understates both your revenue and your expenses, making it harder to understand your true gross margin. We set up your accounts to show gross sales and fees separately.
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