If you sell products online, you’ll likely need to understand the basics of Amazon business accounting.
Now that eCommerce businesses have large platforms like Amazon at their disposal, it’s essential to understand the ins and outs of how to properly account for their day-to-day trade.
There’s more to Amazon business accounting than meets the eye, so we’ve compiled some top tips to make your business as efficient as possible when trading online.
eCommerce accounting v Amazon accounting
You may ask yourself: What’s the difference between regular eCommerce accounting and Amazon business accounting? When you trade through Amazon, there are a few more things to consider.
As Amazon charges seller fees, reimburses for returns, and pays sellers every two weeks, you’ll need to carefully track and record these as and when they come. With a regular eCommerce business, you would be in charge of these transactions and would record them immediately.
With that in mind, here are some things you can do to help yourself.
Choose the right accounting software
The first step towards proper Amazon business accounting is choosing a suitable software package to deal with the volume of transactions you expect to make.
As Amazon is a global shopping network, you’ll need the right kit that accounts for multiple currencies, platforms, and payment methods.
If you’re exporting outside of the UK, for example, you’ll need software that can carry out currency conversions.
Ideally, your software package should also track all transactions in real time, provide comprehensive reports, and manage sales taxes. Providers like Sage and Xero are both Amazon-recognised, so you have options.
Automate
Compiling sales reports can be a big job in Amazon business accounting, but it doesn’t have to be. By automating your processes, you can pull data through with the click of a button to create accurate and timely summaries.
Rather than endlessly scrolling through your sales, you will have a digestible document that gives you all the sales figures you need.
Integrate
Technology is wonderful, isn’t it? The older, more manual ways of working are slowly being phased out in favour of simple, electronic processes.
By integrating your Amazon sales and bank feed with your accounting software, you can get live balance updates, making sure your payments are hitting your account on time. This will make it much easier to reconcile everything, giving you a much clearer picture of your trade.
Integration isn’t just about tracking your money, but your stock as well. By integrating your Amazon storefront with the right software, you can easily keep track of your stock. Each transaction will be counted and deducted from your total as and when it happens.
Stay on top of everything
Amazon business accounting isn’t as straightforward as your standard eCommerce accounting, but it doesn’t have to be overly complicated. By taking the reins and setting yourself up with the right tools, you’ll be able to keep track of every sale.
If you need help getting the best start on your eCommerce business accounting, we’d be happy to offer you friendly and impartial advice.
Get in touch for assistance with your Amazon business accounting.