Accountants for Shopify Sellers | E-commerce Experts

You didn't start a Shopify store to spend your evenings wrestling with CSV files or trying to decipher why your bank deposit doesn't match your sales dashboard.

You started it to build a brand, sell great products, and grow a business. Yet, for many D2C founders, accounting is the bottleneck that kills growth.

If you are treating your Shopify store like a standard high-street business, you are likely overpaying tax, missing vital data, and drowning in admin. Traditional accounting doesn't account for the speed of online retail. It doesn't factor in Shopify Payments fees, Stripe holds, or the complexities of multi-channel selling.

As specialist accountants for ecommerce, Social Commerce Accountants understands the difference between Gross Sales and Net Payouts. We know that "profit" on your Shopify dashboard isn't the same as taxable profit.

Here is how we handle ecommerce bookkeeping services UK-wide, and why you need a specialist partner for the year ahead. Explore our [Shopify accounting methodology] to see exactly how we turn your messy data into audit-proof clarity."

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The "Data Gap": Why Generalist Accountants Fail

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Most high-street accountants are brilliant at what they do, but they often lack the specific toolkit required for ecommerce.

If your accountant asks you for your "Shopify invoices" at the end of the month, or tries to reconcile every single £25 sale individually in the bank feed, you have a problem. That approach works for a plumber; it breaks when you process 500 orders a day.

Gross Sales vs. Net Payouts

Shopify Payouts are "net" figures. Shopify has already deducted their transaction fees, currency conversion fees, and shipping label costs before the money hits your bank.

• The Mistake: If you just record the bank deposit, you are under-reporting your revenue and missing out on deductible expenses (the fees).
• The Fix: We automate this. We ensure your books reflect the Gross Sales (Turnover) and the associated costs, giving you a true picture of your margins.

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The Tech Stack: Xero, Link My Books & A2X

We don't believe in manual entry where automation exists. We exclusively champion Xero as the premier ecommerce accounting software. However, Xero alone isn't enough. You need a bridge.

For Merchants (Inventory)

For Creators (Affiliates)

Tool: Link My Books / A2X

Tool: Bespoke Clearing Account

Function: Automates payouts & VAT

Function: Manual reconciliation of commissions

Why: Matches bank deposits to the penny.

Why: APIs don't support creator tools yet.

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Compliance Alert: OECD Reporting (The "Spy" in the Dashboard)

Status Check (Dec 2025): The first wave of OECD Digital Platform reporting is now complete.

As of January 2025, platforms like Vinted, Etsy, TikTok, and Amazon have already sent their first reports to HMRC. The taxman now holds data on your 2024 earnings.

• The Risk: If your last tax return did not match the data Amazon sent to HMRC, you are likely already flagged for a compliance check.
• The Next Deadline: The next wave of data (covering your 2025 sales) will be sent to HMRC in January 2026—just weeks away. If you have been "estimating" your sales, you need to professionalise your accounts immediately.

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Making Tax Digital (MTD): The April 2026 Deadline

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For years, MTD for Income Tax (ITSA) was "on the horizon." It is now just 4 months away.

From 6 April 2026, if your qualifying income is over £50,000, you are legally required to keep digital records and submit quarterly updates to HMRC. You can no longer just "do a tax return" once a year.

• Our Role: We ensure you are MTD-ready well before the deadline. We set up the digital links between Shopify, your bank, and HMRC, ensuring that when April hits, you are compliant on Day 1.

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International Tax: The End of the €150 Threshold?

Breaking News (Late 2025): The EU has recently reached a political agreement to abolish the €150 customs duty exemption.

• The Old Rule: Consignments under €150 were exempt from Customs Duty (though still subject to VAT via IOSS).
• The New Reality (Coming 2026): We expect this exemption to be removed in early-to-mid 2026. This means every single order sent to the EU may soon attract duty, not just VAT.

What We Do: We help you navigate the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes. We monitor these policy shifts daily so you don't get stuck with stock held at the French border.

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Inventory Management: The "Cash Trap"

There is a saying in our industry: "Turnover is vanity, profit is sanity, but cash is reality."

It is entirely possible to be profitable on paper and bankrupt in the bank account. This happens when your cash is tied up in stock.

The "Expensing Purchases" Error:

Many untrained bookkeepers expense stock immediately when you buy it.

• Incorrect Method: You buy £50k of stock in December. You record a £50k loss.
• Correct Method: The £50k sits as an Asset. You only "expense" the cost of the items you actually sold.

We help you implement Cost of Goods Sold (COGS) accounting. Whether you track this natively in Shopify or use an IMS like Cin7 or Stocky, we ensure your P&L reflects reality, not just cash flow.

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FAQ: Common Questions for Shopify Sellers

Do I need a specialist accountant for Shopify?

Yes. Generalist accountants often misunderstand payment gateway fees (Stripe/PayPal), cross-border VAT, and inventory accounting, leading to overpaid taxes or compliance errors.

What is the impact of the April 2026 MTD changes?

If your income is over £50k, you must submit quarterly updates to HMRC starting April 2026. You cannot wait until Jan 2027 to file. You need real-time software now.

Does Xero integrate with Shopify?

Yes, but we recommend using a connector app like A2X or Link My Books. Direct integration often dumps summary data that makes accurate VAT reconciliation difficult.

How do I handle Dropshipping Tax in the UK?

It depends on the "Place of Supply." If you drop ship from China to the UK (<£135), the marketplace (or you) collects Supply VAT. If you drop ship from China to USA, it's outside UK VAT scope. We map these supply chains to ensure you don't pay tax you don't owe.

About Sam Hoye
Sam Hoye is a specialist e-commerce accountant and the Director of Social Commerce Accountants. He works exclusively with online sellers, helping TikTok Shop, Amazon, and Shopify brands move beyond basic bookkeeping to strategic financial growth. An expert in digital tax compliance, Sam helps founders navigate VAT, OSS/IOSS, and profit analysis without the corporate waffle. When he’s not reconciling settlement reports or optimising Xero flows, he’s helping 7-figure brands secure their cash flow.

Ready to Scale Your Store?

You focus on the product and the marketing. We will handle the Xero, the VAT, and the strategy.

If you are looking for accountants for ecommerce who speak your language—and know that ROAS isn't a type of tropical flower—let's talk.

(Book a Discovery Call with Sam)

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