How Does E-Commerce Affect the Accounting Profession?
The rise of e-commerce created a massive impact on our shopping experience. Aside from its direct effects on consumers, it’s also expected to change how accountants work.
As finance and accounting professionals, learning how e-commerce can affect your profession lets you stay relevant in your field.
1. E-commerce accentuates the need to upskill and reskill
E-commerce businesses often deal with high-volume transactions. Because of this demand, accountants must develop digital skills, especially those related to automation and machine learning.
2. Dealing with e-commerce taxes are more complicated
E-commerce taxes tend to be more complicated. In the United States alone, several states have already enacted economic nexus laws.
This regulation mandates e-commerce businesses that sell goods and services in multiple states to pay taxes in each state when their sales go above a certain threshold.
E-commerce accountants, therefore, should be knowledgeable about the nexus of each state to ensure the proper filing of taxes.
3. E-commerce accountants should be the proponents of change
E-commerce accountants are no longer limited with number crunching. As someone with firsthand access to data, they should be proactive in advising the management of the best course of action based on market trends and changes in consumer behavior.
4. It provides another avenue to practice accounting
The unprecedented growth of e-commerce and digital sectors over a couple of years had opened a wider avenue for accountants to practice their professions.
Accounting firms, meanwhile, can serve a new client base — namely, e-commerce businesses.
That’s why rather than seeing e-commerce — and automation in general — as a threat, accounting professionals must see it as an opportunity to expand their services and enhance their skills.
Need a hand in managing your growing accounting duties? Our e-commerce accountants at D&V Philippines can help. Contact us at email@example.com for more information. You can also download our whitepaper, Outsourcing: How to Make it Work, to find out how you can succeed in outsourcing.