E-commerce Accounting

Basics

Businesses in e-commerce record their business transactions, like other businesses, through Account assignment, creation of Booking entries as well as the management of primary and subsidiary ledgers. Typical characteristics include sales via online shops or marketplaces, payment processing via payment service providers, and international business transactions.

Depending on the legal form and size, a Double-entry bookkeeping to be required or a Income-surplus calculation (EÜR).

Legal framework

E-commerce accounting is governed by general commercial and tax law regulations. In online retail, special VAT regulations may also need to be considered, particularly for cross-border supplies or electronic services.

Systematic classification

• Financial accounting
• Value Added Tax
• Reverse charge procedure
• Digital document processing
• Outsource accounting

The term describes an industry-specific classification within general accounting.

Typical areas of responsibility

• Recording of online revenue and fees
• Matching of payment service providers
• Recording of goods movements
• VAT allocation of supplies
• Creation of business management evaluations

Typical procedure

1. Revenue and fee capture
2. Coding and accounting
3. Cash flow reconciliation
4. Creating evaluations
5. Preparation of closing documents

Practical relevance

In e-commerce, accounting is often heavily digitised. Interfaces with shop systems, marketplaces and payment service providers play an essential role in structured and traceable bookkeeping.

Typical sources of error

FAQ

Conclusion

E-commerce accounting refers to the lawful organisation and execution of financial accounting in online retail, taking into account industry-specific peculiarities.