Amazon Accounting Services

Amazon accounting is the process of recording, interpreting and reporting the financial transactions regarding the Amazon business and its sales.

For your Amazon accounting, the best practice is to engage an Amazon (FBA/FBM) accountant to work along with cloud accounting software.

Amazon accounting is different than traditional retail bookkeeping because of the following:

1. Settlement-based payouts: There are usually more small transactions on Amazon. Amazon doesn’t give you clear line-by-line transaction records. They batch settlements, net fees, returns and reimbursements against revenue, and send lump-sum deposits every two weeks. This makes it difficult to match income to individual transactions over time periods.
2. Diverse business models: Brands on Amazon operate on different models such as own-inventory DTC brands, hybrid models, drop shipping and others. Each model has a different cost structure, making the accounting different.
3. Inventory complexity: Amazon sellers often store their products at third-party logistics providers (3PLs) or Amazon fulfillment centers. This creates challenges around inventory valuation, COGS accuracy, and reserve holds.
4. Embedded fees: Referral fees, FBA fulfillment and storage fees, advertising costs, and return processing charges are deducted before you ever receive funds, making true margin visibility require significant unbundling. 
5. Sales tax complexity: Selling across multiple states increases sales tax complexity.

QuickBooks covers all core Amazon accounting needs, and includes advanced features for managing FBA inventory. It is the most common solutions used for Amazon accounting.

There can be problems with connecting QuickBooks directly to your Amazon Seller account for various reasons. Transactions may not sync correctly, ledgers can go missing, and Amazon returns frequently fail to appear, particularly when return data requires manual input.

For reliable syncing, it’s better to use a dedicated integration tool like A2X, ConnectBooks, or Synder. These tools act as a bridge between Amazon and QuickBooks. They automatically sync sales, refunds, fees, and expenses. Integration tools also allow mapping Amazon transactions to the correct QuickBooks accounts and categories.

When you outsource your Amazon accounting to EA, you’re getting timely, accurate financials and a team that’s already helped brands grow through every stage.

We handle the day-to-day work, but can also act as a strategic partner to help you think ahead and scale.

As your business grows or hits peak seasons, we can quickly scale your team up or down without the hassle of hiring or layoffs. You also benefit from best practices used by larger brands, so you’re not figuring things out on your own. In short, we help you grow with more financial visibility and confidence.