With COVID-19 a continuing concern for many cities, it's time for small businesses to develop a long-term plan to transition their operations from a brick-and-mortar site to online sales. A meeting with your small business CPA can help you decide if it's time to transition your brick-and-mortar store and focus on your online operations. Here are a few tips to help with a profitable transition:
Choose the Right E-commerce Platform for Your Business
You'll need an e-commerce platform where new and potential customers can learn about your products and make their selections. There is a slew of options when it comes to your e-commerce platform; you want to make sure that your selection includes the proper customization abilities for your business and incorporates features that allow you to keep track of orders and returns.
Talk to your small business CPA about which financial qualities are a must-have for your platform. You also need to confirm that the platform fits within your company's budget for operating expenses. Your small business CPA will assist you in determining what amount is reasonable for your company's anticipated sales.
Redetermine the Markup for Your Goods with a Small Business CPA
Before you add prices to your new site, meet with your small business CPA to determine the appropriate markup for your wares. Even if you don't have the costs of a brick-and-mortar store, online businesses still have expenses they need to keep in mind, like:
Fees for their e-commerce site
Payment processing fees
Labor costs for running the e-commerce site
Labor costs and shipping expenses for distributing the goods
The markup on your goods must cover these items, or your transition to online selling won't be a profitable venture.
Check that Your Financial Software Is Properly Integrated
Your e-commerce platform and financial software must be correctly integrated so that you always have an accurate idea of how much inventory you have on hand. This will also make it easier for you to sit down with your small business CPA and compile earnings statements and income forecasts.
Set Up a Tool to Collect Sales Tax
It's important that your website is properly coded to correctly collect sales tax. Not only do you have to deal with state sales tax, but some cities and counties have their own tax rates, opt for a reputable tool to collect your sales tax, otherwise, you risk under collecting and having to pay expensive fines.
Continue to Market Your Products and Interact with Your Customers
Now that you're selling online, customer interaction is more important than ever. Make a plan to market your new website so that customers know you haven't gone out of business. Interact with your old and new customers so that they feel like they're receiving a personalized experience. Your small business CPA is an excellent resource to help you calculate your new marketing budget.
Contact a Small Business CPA at FAL
At Fair, Anderson & Langerman, our skilled team of tax and accounting experts are here to help you navigate this time of transition. Contact a small business CPA today at 702-870-7999 with any questions you may have.