Bookkeeping for Amazon Seller,  Amazon marketplace is an e-commerce platform that is owned and operated by Amazon It enables third-party sellers to sell either new or used products on a fixed price online marketplace. Furthermore, depending upon the usage, the billing reports are created. The AWS Cost and Usage report gives an in-depth information about the use of AWS resources and the projected cost for the specific usage.

There are various applications that help in managing various business transactions that occur through Amazon. One of the state-of-the-art technologies can be managed by the automated accounting by A2x which gives a detailed insight for the sales, fees, cost of goods sold and FBA inventory.

A major concern that many sellers often face is the taxation as many of the sellers are unfamiliar with the various terms such as sales tax, VAT, nexus, etc. For a clear picture, there are two main types of taxes – 1) Income tax and 2) Sales tax also known as Value Added Tax (VAT) or Good and Services Tax (GST) in some countries.

A2X Software for Amazon Bookkeeping

Bookkeeping for Amazon Seller -The A2x software makes accounting work easier by automatically fetching the latest Amazon settlement transactions and then posts the summarized transactions to your accounting system.

Hence, giving an inclusive insight for every penny of the Amazon settlements.

Additionally, it also helps you save time in expanding your Amazon business as the software takes complete control of the accounting management.

The vital thing about software is its accuracy. Therefore, over 1000 Amazon sellers consider it a leading and trustworthy software.

You can prepare detailed reports for Amazon business through COGS per unit, live inventory report and profitability report.

  • The accounting for COGS allows you to administer your inventory by treating your product inventory as an asset until you sell the product. It also includes the procurement costs, production costs, taxes and duties, listing fees and inventory storage fees and costs.
  • The live inventory and comprehensive profitability report enable you to plan and adapt to the marketplace in a smarter and faster way. It gives an edge of advantage and helps make complex automation get easier.

This whole process may seem complicated. But with the use of the right software, the complete process can be in a proper system. Some of the best tools that can be used for the process are the A2x for account integration and Xero or Quickbooks for accounting. These are some of the best tools to make your financial accounting seamless and profitable.

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Bookkeeping for Amazon Seller

Accounting for Amazon sellers

Typical accounting is not gone work for the amazon seller, accounting for amazon seller is way more challenging than the usual accounting process. If you are planning to become an amazon seller, a sound accounting base is necessary for your decision-making process. But don’t worry, you can focus more on making millions and leaving the accounting pressure to Meru accounting.

By allowing us to provide our accounting service, you are building a strong backbone for your business. Many businesses foray into the online market via Amazon, but only a few make a profit venture, because of accurate bookkeeping and accounting.

You might think it as a just a routine business activity. But think of the impact of inaccurate financial information, wrong decision and policies, uncertain of profitability on your business plus non-compliances of taxes such as Sales tax etc. and most importantly the credibility of your business. No business can prosper without finance, it’s like blood for any business enterprises. It calls for essential financial management, which is not possible without accounting.

Crucial accounting areas for amazon seller

Usually, every business has components that part a substantial portion of their books of accounts, the same is also for the Amazon sellers. But the areas that you face trouble are with sales data, inventory and COGS and sales tax compliance. Let us understand how it cannot trouble you any more.

Sales Data: Accurately recording of the sales data is essential to determine profit accurately. You receive payments from the amazon every two weeks. Small business owner and in-house bookkeepers may record the whole amount as sales.

Is it truly represents sales? No, because there are also other activities such as FBA fee, shipping charges, sales tax, return, warehouse fees etc. The deposit is net of all these activities on the date of receipt.

Yes, this is the loose end that needs proper classification, but if you are thinking of solving the issues manually, you will mess up with large sets of data and sell your time to bookkeeping and accounting software. Instead, we can be a great help we use tool for automation of this process known as A2X. It connects the amazon seller account with accounting software Xero and QuickBooks. It will regularly update your books from the back end of Amazon so, you can calm down.

Inventory and Cost of Goods Sold (COGS): Proper recording of inventories and COGS items according to the accountancy rule is necessary unless you make an end with a loss according to books despite the profit earned. Our professional experts with the use of A2X can update the COGS and inventory information.

Integration of professional experts can make streamline the whole accounting process.

Sales tax Compliances

The compliances for the e-commerce platform is troublesome, there are various laws of physical nexus, FBA nexus, click-through nexus to determine your tax liabilities. Getting familiar and started might delay your business, it is better to give us a chance.

We use Sales Tax analytics tool that shows your sales tax exposure. It connects to Amazon seller account and provide information about your nexus regarding the state’s taxes, Year wise sales detail for each state tax and also amount of taxes you owe for each of those states.