Ecommerce Internet Tax Accountant Chicago Illinois

July 30, 2015
 
Ecommerce Internet Tax Accountant Chicago Illinois
 
We were one of the first Public Accounting Firms in the Midwest to embrace the Internet Revolution. You need to understand that E-Commerce and the vast number of transactions that it entails, pushes the limits of traditional, conservative accounting.
 
But its not only the shear number of transactions that poses a problem, its also where the transactions occur that creates a difficulty. If you are shipping to an address inside your state of origin, then it is a sales taxable transaction. If you are shipping to an address outside of that state, than it is not. But it all depends, not on where the company is located, but where the inventory is being shipped from. I have entities here in Chicago, that have fulfillment houses on Colorado. If they ship to an address in Illinois, it is not a sales taxable transaction. If they ship to any address inside Colorado, it is.
 
Paypal, and other internet credit card type systems are another challenge. They are quite expensive to use, and do not provide the traditional documentation that CPA’s and Enrolled Agents are used to using for the preparation of financial statements and tax returns.
 
Inventory balances can be another challenge. Sometimes it moves so quickly that it is difficult to determine who owns what. If you cannot properly determine how much inventory is owned, then you will have difficulty determining a value for the balance sheet.
 
Credit card charge backs are another problem. Certain internet sites have an enormous amount of charge backs. Reconciling the checking accounts to determine a reasonable cash balance can be relatively impossible but absolutely necessary.
 
Also, please realize that because of all of these difficulties the taxation services love to audit these entities. If the firm that was used to prepare the tax returns is not an experienced ecommerce internet tax accountant, the client normally ends up paying for the firms mistakes.
 
If you are having problems with your ecommerce internet tax accountant chicago illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
 
Chris@AccountingSolutionsltd.com
 
Additional Accounting Articles and information on my firm can be found at
 
www.AccountingSolutionsLtd.com
 
Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.