A Complete Guide for Amazon Seller Accounting and Bookkeeping

• Reading Time: 11 Minutes
• Published: November 1, 2024
• Last Updated: February 15, 2025

Amazon accounting might sound complex, but with the right guide, it’s totally doable. For Amazon sellers, handling finances is more than just crunching numbers—it’s about understanding every cost and making sure your profits match up. From tracking fees and sales to organizing expenses and taxes, getting Amazon bookkeeping right can boost your business and make tax time a breeze.

This guide breaks down the essentials of amazon seller bookkeeping, covering the key practices, tools, and tips to stay on top of it all. Whether you’re just starting or looking to level up your bookkeeping game, having clear, organised financials lets you make better decisions, scale confidently, and avoid any money-related surprises.

What is Amazon Bookkeeping?

Amazon bookkeeping refers to the unique form of bookkeeping where companies that are in business through the Amazon platform keep track, list, and record financial transactions. Whereas normal bookkeeping covers typical transactions and processes, Amazon Bookkeeping requires specialised skills, such as dealing with high numbers (hundreds or thousands) of records daily for each product sold; tracking expenses involved in every transaction like shipping fees, advertising fees, different selling fees by Amazon, and so on. Efficient bookkeeping for Amazon sellers not only secures precise financial statements but also helps track profit margins and, in the end, allows for data-driven decisions that support growth.

With the right tools or software, Amazon seller bookkeeping can automate much of this process—from recording daily sales, returns, and refunds to other financial data specific to each growing platform. Amazon accountants offer ecommerce accounting services beyond the basics; some provide specific support to help sellers get their finances right so they can remain tax compliant and identify key metrics.

While bookkeeping is purely focused on transactions, Amazon accounting looks more at digesting financial statements, offering insights to provide a picture of tax planning, and encouraging further financial advice with informed perspectives. Amazon accountants are experts in these areas, delivering advice that allows Amazon businesses to achieve financial security and growth.

Importance of Amazon Accounting and Bookkeeping

• Compliance with Australian GST Laws

Amazon sellers in Australia are required to comply with the Goods and Services Tax (GST) regulations. Proper amazon bookkeeping helps in recording all GST-inclusive transactions and simplifies the reporting process, reducing the risk of penalties. Accurate amazon seller bookkeeping ensures that sellers meet the Australian Taxation Office (ATO) requirements, making GST collection and remittance straightforward.

• Track Amazon FBA Fees and Inventory Costs

For those using Fulfilled by Amazon (FBA), amazon FBA accounting plays a significant role in managing costs associated with storage, packaging, and shipping. These fees can add up quickly, so dedicated accounting for amazon sellers enables clear visibility into FBA expenses. Knowing these costs helps sellers evaluate profitability more accurately, ensuring that they’re not losing money to unexpected fees.

• Improve Cash Flow Management

Managing cash flow is vital for any Amazon seller, especially given the frequent and high-volume transactions involved. Effective amazon bookkeeping helps track revenue, expenses, and profits, providing a clear picture of the cash flow situation. By categorising expenses and tracking sales, sellers can maintain a healthy cash flow, which is essential for paying suppliers on time and investing in new stock.

• Optimise Tax Deduction Opportunities

Amazon businesses in Australia may qualify for certain tax deductions. Through efficient bookkeeping for amazon sellers, business owners can accurately track deductible expenses like shipping, packaging, and marketing costs.

This not only ensures compliance but also allows sellers to minimise their tax liability by taking full advantage of eligible deductions. Amazon seller bookkeeping can simplify tax time, reducing the workload and making sure sellers don’t miss out on valuable tax benefits.

• Support Growth and Scalability

As Amazon grows, so does the complexity of its finances. Reliable accounting software for amazon sellers is a scalable solution that simplifies bookkeeping tasks, allowing sellers to focus on business growth rather than manual data entry. With real-time insights into sales and expenses, amazon FBA accounting provides sellers with the tools to make informed decisions about scaling operations, managing inventory, and introducing new products.

• Enhance Inventory Management and Profit Tracking

Managing inventory levels is essential for Amazon sellers, and effective amazon bookkeeping ensures stock levels are balanced to prevent overstocking or stockouts. For those using FBA, Amazon FBA accounting further tracks storage costs and inventory turnover rates. This data provides sellers with valuable insights into which products perform well and where adjustments are needed, leading to better profit margins and fewer losses.

• Boost Financial Decision-Making

Accurate amazon seller bookkeeping provides a solid financial foundation for strategic decision-making. With a clear view of revenues, expenses, and overall profitability, sellers can set realistic growth goals, determine product pricing, and identify opportunities to cut costs. Leveraging accounting software for amazon sellers can streamline these processes, offering real-time financial insights that empower sellers to make data-driven business decisions.

Best Amazon Accounting Software

Here are some of the most used accounting software which are not just used for amazon accounting but other ecommerce platforms as well:

1. Xero

Xero is a cloud-based solution ideal for amazon seller bookkeeping, offering an intuitive and user-friendly interface that caters to businesses of all sizes. It’s especially useful for Australian Amazon sellers looking for seamless financial management.

Features:

• Integration with Amazon for automated transaction tracking and amazon bookkeeping.
• Real-time cash flow monitoring and expense tracking.
• Automatic bank feeds that streamline bookkeeping for amazon sellers.
• Comprehensive reporting features for informed business decisions.
• Customisable invoicing, helping amazon accountants maintain a professional image.

2. QuickBooks

QuickBooks is a popular choice for accounting software for amazon sellers due to its simplicity and functionality, making it ideal for both small and large Amazon businesses. Its advanced features simplify every aspect of amazon seller bookkeeping, from payroll to tax compliance.

Features:

• Syncs with Amazon for efficient amazon fba accounting.
• Payroll and tax management tailored to e-commerce needs.
• Detailed financial reports, supporting amazon seller bookkeeping.
• Real-time data syncing across devices for easy access anywhere.
• Expense and income categorisation for streamlined bookkeeping for amazon sellers.

3. Zoho

Zoho Books is a cost-effective option for accounting for amazon sellers, offering a range of essential tools for small to medium-sized businesses. This software is ideal for those needing reliable amazon bookkeeping without high costs.

Features:

• Automated reconciliation with Amazon for accurate amazon bookkeeping.
• Sales, inventory, and transaction tracking in real-time.
• Multi-currency capabilities, supporting international Amazon sellers.
• Detailed tax and GST reports for compliance.
• Customisable dashboards for clear insights, easing bookkeeping for amazon sellers.

4. NetSuite

NetSuite is an advanced ERP and accounting software for amazon sellers that is ideal for growing or enterprise-level Amazon businesses with complex requirements. Its extensive tools help manage finances and inventory at scale.

Features:

• Centralised dashboard for managing multiple sales channels, including Amazon.
• Advanced inventory and order management for amazon fba accounting.
• Comprehensive financial reporting and analytics for strategic insights.
• Automated workflows, improving amazon seller bookkeeping efficiency.
• Customisable tax management features for Australian compliance.

5. Sage

Sage is a powerful accounting software for amazon sellers that provides comprehensive support for e-commerce businesses, focusing on ease and accuracy. It’s a preferred choice for Amazon sellers needing accurate and timely amazon bookkeeping.

Features:

• Integration with Amazon to automate amazon bookkeeping.
• Real-time reporting on sales, expenses, and profits.
• Strong inventory management, crucial for bookkeeping for amazon sellers.
• Automated invoicing and payment processing for time-saving benefits.
• Customisable tax and GST compliance for Australian amazon accountants.

Best Amazon Accounting Practices

Here are the best practices for Amazon accounting to save time and improve processes for Australian Amazon sellers.

• Amazon Seller Bookkeeping Software:

Good amazon seller bookkeeping starts with selecting specialised e-commerce accounting software. Choose software that automatically records transactions, sales, charges, refunds, and Amazon fees. By automating these, sellers can save time and reduce the possibility of manual data entry errors.

• Divide Business and Personal Transactions:

Keep personal expenses separate from business transactions to maintain accurate financial statements, essential in a streamlined Amazon FBA accounting system. This simplifies tax reporting and provides better insights into business performance.

• Track and Categorise Amazon Fees:

Amazon accounting for Amazon sellers should include tracking various fees accurately. Organising FBA fees, storage, and shipping costs helps sellers calculate profitability on each product and improve overall financial accuracy.

• Manage Inventory Costs:

Cost of Goods Sold (COGS) is an essential aspect of Amazon FBA accounting. Keep COGS updated by recording purchase costs, shipping rates, and storage fees. Proper COGS tracking enables precise profit calculation.

• Regular Review of Cash Flow:

Accountants for Amazon sellers advise keeping close tabs on cash flow. Monitoring these inflows and outflows regularly helps assess the financial health of the business, preventing unforeseen cash shortfalls.

• Prepare for Taxes in Advance:

For effective Amazon bookkeeping, tax planning is vital; set aside funds for GST and income tax based on sales volume. Frequent checks of tax liabilities avoid surprises at year-end.

• Outsource to the Pros:

Outsourcing Amazon FBA accounting not only brings specialised expertise but also ensures e-commerce knowledge is applied while you focus on scaling. With insights into cash flow, tax compliance, and growth strategies, outsourced accounting services providers have accountants for Amazon sellers to allow business owners to concentrate on expanding their store.

Tips to Hire the Right Accounting CPA for Your Firm

Hiring the right CPA for your firm can make a world of difference. Here are some practical tips to ensure you find the best fit:

1. Prioritise Experience with Amazon Accounting

Look for CPAs who have hands-on experience in amazon accounting and understand the unique challenges faced by e-commerce businesses. A CPA knowledgeable in amazon seller bookkeeping and accounting for amazon sellers will be able to handle complex sales channels, returns, and tax implications, giving you confidence that your financial records are accurate.

2. Verify Familiarity with Amazon Bookkeeping Software

Ensure the CPA is skilled in accounting software for amazon sellers such as Xero, QuickBooks, or specialised Amazon tools. This expertise streamlines amazon bookkeeping processes, enabling the accountant to integrate your data seamlessly, track sales, and monitor inventory accurately. Familiarity with amazon fba accounting systems also simplifies reporting and tax preparation.

3. Check Qualifications and Certifications

When hiring amazon accountants, confirm they are licensed CPAs with up-to-date certifications. A CPA with a specialisation in e-commerce or accounting for amazon sellers adds credibility, ensuring they are familiar with the latest regulations and best practices in bookkeeping for amazon sellers.

4. Ask About Tax Planning and Compliance Knowledge

Tax compliance is critical for Amazon businesses, so hire an amazon accountant who understands tax deductions, sales tax compliance, and reporting requirements. Their knowledge in amazon fba accounting helps to reduce errors and ensure your business adheres to all legal obligations, avoiding costly fines.

5. Look for Strong Analytical and Reporting Skills

A CPA with excellent analytical skills can provide insights into your Amazon business performance, helping you optimise profits. This ability, combined with experience in amazon bookkeeping, can highlight trends, track expenses, and identify areas for growth through clear and actionable reporting.

6. Inquire About Inventory Management Expertise

Proper inventory management is crucial for Amazon sellers. Accountants for amazon sellers with inventory management experience can help track stock levels, prevent overstocking, and ensure accuracy in amazon seller bookkeeping. Their ability to keep inventory data aligned with financial records is invaluable.

7. Evaluate Communication and Responsiveness

Effective communication with your amazon accountant is essential for addressing issues promptly. Hire someone who is responsive and proactive, as this will enhance bookkeeping for amazon sellers by allowing quick adjustments to your finances and better financial planning.

8. Look for Adaptability to Scaling Business Needs

Choose an amazon accountant who can adapt as your business grows, offering solutions for scaling financial operations. This adaptability is especially helpful for firms aiming to expand their e-commerce footprint, as they can continue using the same accountant without disruption to amazon seller bookkeeping.

Following these points as ecommerce accounting guide you toward selecting a CPA that aligns with your Amazon business’s needs and ensures efficient and accurate amazon bookkeeping for lasting success.

Conclusion

The challenges associated with Amazon seller bookkeeping are distinct from those faced by offline businesses. Manual tracking is insufficient, and even computerised systems can quickly become overwhelming. Given the fast growth of e-commerce, precise bookkeeping is critical to prevent losses and improve ROI. Amazon seller accounting can be stressful, but new and seasoned entrepreneurs alike can benefit from hiring reasonably priced accountants to standardise business practices and save time.

From initial setup to optimising your current processes, this guide ensures that every aspect of your Amazon business is financially on track. Using Amazon seller bookkeeping software and specialized accountants keeps finances organized and tax-compliant, essential as you scale up. Mastering Amazon FBA accounting empowers you to make informed decisions, grow operations, and maintain profitability in the competitive Amazon marketplace. Explore our pricing to find tailored solutions that keep your finances streamlined, so you can focus on growing your Amazon business confidently.

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