Schultz & Associates, CPA

A strong December can turn into an expensive January. Holiday orders come in, deposits hit the bank, and sales look good. Then customers start returning merchandise. The refunds reduce cash, the warehouse has more work, and some products come back…Continue readingHoliday Returns: The Sale Goes Away, but the Costs Don’t

Ecommerce owners don’t usually like selling inventory for less than they paid for it. That is understandable. The business purchased those products expecting to make money. Cutting the price enough to take a loss can feel like admitting the purchase…Continue readingTurning Slow-Moving Inventory Into Cash—and Why Selling at a Loss Can Make Sense

I have ecommerce clients who intentionally keep their prices below some of their competitors. They are trying to build customer loyalty and gain market share. I understand what they are trying to do. They are willing to make less on…Continue readingEcommerce Pricing: Can You Afford to Be Cheaper Than Your Competition?

Years ago, open-to-buy meetings were a familiar part of working with high-end men’s clothing stores. In December, owners would sit down to plan their purchases for spring apparel. How much merchandise did they need? What was already on order? How…Continue readingAI Can Tell You What to Order. Can Your Business Afford It?

You buy products from a supplier, but leave them in the supplier’s warehouse. As orders come in, the supplier ships the products directly to your customers. You run the business from Michigan. You have no employees in the warehouse’s state,…Continue readingYour Inventory Is in Another State. What Does That Mean for Your Taxes?

You run an ecommerce business from Michigan. Your supplier owns the products, keeps them in its warehouse, and ships them directly to your customers. You never touch the merchandise. You don’t have a warehouse, an office, or employees in another…Continue readingCan Drop Shipping Create Tax Obligations in Other States?

Your ecommerce business sells a product for $50. You send one to an influencer, give one to a prospective customer, or use a few as promotional samples. Can you deduct $50 for each one? Generally, no. The starting point is…Continue readingYou Gave Away a $50 Product. Why Isn’t That a $50 Deduction?

If Shopify files your sales tax returns, you need to arrange for someone else to take over. Shopify is ending its automated filing service after completing covered returns for sales through December 31, 2026. New York has a special final…Continue readingShopify Is Ending Automated Sales Tax Filing. What Should Sellers Do Next?

I see a lot of accounting firms advertising fractional CFO services. I understand the appeal. Business owners want someone who can explain their numbers and help them make decisions. They want to know whether they can afford another employee, buy…Continue readingWhy Our Ecommerce Clients May Not Need a Fractional CFO