Shopify, Amazon, Stripe and PayPal each report differently, none of them match your bank deposits, and your 1099-K is larger than the money you received. Inventory and sales tax nexus sit on top of that. This is a specialist problem.
Fixed fees, quoted in writing. Florida licensed CPA.
Three structural issues that generic bookkeeping does not solve.
Platforms settle net of fees, refunds, chargebacks, shipping and advertising deductions. Booking the deposit as revenue understates both sales and expenses, and it will not agree with the gross figure the IRS receives on your 1099-K.
Product cost becomes cost of goods sold when the item sells, not when you pay the supplier. Expensing purchases makes a stocking-up month look catastrophic and a selling-down month look brilliant, and it misstates taxable income in both directions.
After Wayfair, economic nexus is triggered by sales volume or transaction count, not physical presence. Inventory sitting in a fulfillment center creates physical nexus on top of that.
Built for multi-channel sellers.
Gross sales, platform fees, refunds, chargebacks, shipping and advertising unpacked from each settlement and tied to the deposit that actually landed.
Proper cost of goods sold with landed cost including freight and duties, so your gross margin is real. We also look at whether the small business exception to the uniform capitalization rules applies to you.
Where you have crossed an economic threshold, where your inventory has created physical nexus, and what marketplace facilitator laws already cover so you do not register where you do not need to.
Gross reported to the IRS, reconciled down to net through documented deductions, so the return matches the third-party reporting instead of triggering an automated notice.
Growing e-commerce eats cash. Inventory purchases, ad spend and payout timing determine whether a profitable quarter leaves you liquid or stranded.
Entity structure, S corp timing, and equipment or inventory decisions modeled against the actual unit economics rather than a revenue figure.
Connected properly, so your books close on live data instead of month-old statements. Where we hold a certification, we say so.
General information, not advice for your situation. Outcomes depend on facts we would need to review with you.
“Philip is more than our CPA, he is part of our team. He is proactive, incredibly responsive, and always thinking ahead about our business and taxes.”
Shopify, Amazon, Walmart, Etsy, eBay, WooCommerce and the usual payment stack of Stripe, PayPal, Shop Pay and Affirm. The reconciliation approach is the same regardless: unpack the settlement, tie it to the deposit, and keep gross and net separated in the ledger.
If you carry inventory, generally yes for tax purposes, though there is a small business exception based on average annual gross receipts that may allow a simpler method. Independent of the requirement, accrual is the only basis that shows you real gross margin when you hold stock, so most serious sellers want it regardless.
First we quantify it: which states, from what date, and roughly how much. Then we look at whether a voluntary disclosure agreement makes sense, which in many states limits the look-back period and abates penalties in exchange for coming forward. Waiting does not improve the position, and the liability generally has no statute of limitations if you never filed.
Yes, and it is common. We scope the cleanup as a separate fixed fee so you know the cost before we begin, and so it does not distort your ongoing monthly price.
Once profit is consistent, often yes, but the breakeven depends on your net income, a defensible salary figure, and the administrative cost of running payroll. E-commerce profit can be volatile, and electing in a spike year then revoking is expensive. We run the math on your numbers first.
Most firms make you book a call before they will name a price. Answer a few questions and get a real starting number in about two minutes.
