#345 - Financial Foundations for DTC Success: What E-commerce Founders Need to Know About Tax and Accounting

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.   Additional episodes you might like: • #175 Ariel Vaisbort - How OLIPOP Runs Influencer, Community, & Affiliate Growth • #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 ----- Have any questions about the show or topics you'd like us to explore further? Shoot us a DM; we'd love to hear from you. Want the weekly TL;DR of tips delivered to your mailbox? Check out our newsletter here. 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 Follow us for content, clips, giveaways, & updates! DTCPod Instagram DTCPod Twitter DTCPod TikTok   Christian Rivera - Founder of The Ecommerce Accountants Blaine Bolus - Co-Founder of Castmagic Ramon Berrios - Co-Founder of Castmagic