The Foundation of a Profitable Amazon Business

Clean books are not just about tax compliance — they are about understanding your business. Accurate bookkeeping reveals true profitability, cash flow trends, and growth opportunities hiding in your Amazon data.

Why Amazon Seller Bookkeeping Is Different

Multi-Channel Complexity

Many Amazon sellers also sell on:

Shopify

eBay

Etsy

Walmart Marketplace

Their own websites

Each platform has different fee structures, payout schedules, and reporting.

Inventory Management

Unlike service businesses, Amazon sellers must track:

Cost of goods sold (COGS)

Inventory in transit

FBA inventory at Amazon warehouses

Returns and reimbursements

Amazon-Specific Fees

Your books must accurately capture:

Referral fees (8-15% depending on category)

FBA fulfillment fees

Monthly storage fees

Long-term storage fees

Advertising costs (PPC)

Subscription fees

Core Bookkeeping Principles

Separate Everything

Open dedicated business accounts immediately. Never mix personal and business transactions. This is especially important for non-resident sellers who may face additional IRS scrutiny.

Choose Your Accounting Method

Cash Basis

Record income when Amazon pays you

Record expenses when you pay them

Simpler but less accurate for inventory businesses

Accrual Basis

Record income when earned

Record expenses when incurred

Required if inventory is significant

More accurate but complex

Most growing Amazon sellers should use accrual basis.

Essential Amazon Seller Reports

Monthly Requirements

Amazon settlement statements (bi-weekly)

Inventory reconciliation

Advertising reports

Refund and reimbursement tracking

Key Metrics to Track

Gross profit margin by product

ACoS (Advertising Cost of Sales)

TACoS (Total Advertising Cost of Sales)

Inventory turnover

Return rates

Software Recommendations

| Tool | Best For | Key Features |

|------|----------|-------------|

| QuickBooks Online | Most sellers | Integrations, reporting, scalability |

| Xero | Multi-currency | Strong international features |

| A2X | Amazon automation | Automatic settlement imports |

| InventoryLab | FBA sellers | Inventory + profitability tracking |

| Link My Books | Multi-channel | Auto-imports from Amazon, Shopify |

Amazon Settlement Statement Breakdown

Understanding your bi-weekly Amazon payout:

**Product sales** (gross)

**Minus refunds**

**Minus Amazon fees**

**Minus FBA fees**

**Minus advertising**

6. **Plus reimbursements**

7. **Equals net deposit**

Your bookkeeping system should match each line item to the correct account.

Monthly Bookkeeping Checklist

[ ] Reconcile Amazon deposits to settlement statements

[ ] Categorize all expenses

[ ] Update inventory counts and COGS

[ ] Reconcile business bank and credit card accounts

[ ] Review profit and loss by product

[ ] Track estimated tax liability

Quarterly Reviews

[ ] Generate profit and loss statement

[ ] Analyze cash flow patterns

[ ] Make estimated tax deposits

[ ] Review inventory aging

[ ] Adjust advertising strategy

[ ] Compare budget vs. actual

Costly Mistakes to Avoid

**Recording gross sales as income** (should be net of refunds)

**Not tracking COGS properly**

**Missing Amazon fee deductions**

**Ignoring inventory shrinkage**

**Waiting until year-end** to organize books

When to Hire a Professional

Consider professional bookkeeping when:

Monthly transactions exceed 100

You sell on multiple channels

Inventory management is complex

You need investor-ready financials

Tax time feels overwhelming

Our Bookkeeping Services for Amazon Sellers

Best Tax And Accounting Solutions offers:

Daily or weekly transaction recording

Amazon settlement reconciliation

Inventory and COGS tracking

Multi-channel financial reporting

QuickBooks setup and training

Tax-ready year-end packages

Let us transform your books from a burden into a business advantage.

Bookkeeping Best Practices for Amazon Sellers