#345 - Financial Foundations for DTC Success: What E-commerce Founders Need to Know About Tax and Accounting
Description
Christian Rivera is the founder of The Ecommerce Accountants, a firm that specializes in tax, accounting, and business structuring for e-commerce companies. Their clients include social media marketing agencies, dropshippers, digital marketers, Amazon automation, Amazon FBA, and internet coaches/gurus.
In this episode of the DTC POD, Christian explores key accounting issues that e-commerce businesses must address to succeed, such as sales tax compliance, revenue recognition, and inventory accounting. He also unpacks tax strategies that can help entrepreneurs set up smarter finances and maximize their profitability.
Interact with other DTC experts and access our monthly fireside chats with industry leaders on DTC Pod Slack.
On this episode of DTC Pod, we cover:
1. E-commerce Accounting Challenges
2. Sales Tax Management
3. Revenue Recognition
4. Inventory Accounting
5. Financial Strategies and Advice
6. Inventory Management and Financing
7. Business Entity Structures
8. Growth Patterns of Successful Brands
9. Tax Planning and Optimization
Timestamps
00:00 Christian Rivera’s background and company
04:47 Accounting and tax for commerce brand
08:05 How sales tax works and where it applies
13:46 How every successful entrepreneur starts
16:44 VAs, agencies, and managing paid traffic
19:45 Inventory management for DTC brands
22:55 Strategies for inventory financing
25:16 Tax planning and optimization
27:57 S corp and LLC: difference and benefits
33:37 Tax strategies for foreign-owned businesses
36:52 Puerto Rico's Act 60 tax incentive program
39:39 Tax strategies for American entrepreneurs
45:24 Christian Rivera’s advice for DTC founders
Show notes powered by Castmagic
Past guests & brands on DTC Pod include Gilt, PopSugar, Glossier, MadeIN, Prose, Bala, P.volve, Ritual, Bite, Oura, Levels, General Mills, Mid Day Squares, Prose, Arrae, Olipop, Ghia, Rosaluna, Form, Uncle Studios & many more.
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• #184 Jake Karls, Midday Squares - Turning Your Brand Into The Influencer With Content
• #205 Kasey Stewart: Suckerz- - Powering Your Launch With 300 Million Organic Views
• #219 JT Barnett: The TikTok Masterclass For Brands
• #223 Lauren Kleinman: The PR & Affiliate Marketing Playbook
• #243 Kian Golzari - Source & Develop Products Like The World's Best Brands
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Projects the DTC Pod team is working on:
DTCetc - all our favorite brands on the internet
Olivea - the extra virgin olive oil & hydroxytyrosol supplement
Castmagic - AI Workspace for Content
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Christian Rivera - Founder of The Ecommerce Accountants
Blaine Bolus - Co-Founder of Castmagic
Ramon Berrios - Co-Founder of Castmagic