Amazon Accounting

Are you an amazon seller going through the nightmare of getting your accounting and taxes in order?
You never have the exact numbers to explain how good each of your product is performing?
You are not alone, there are many like yourself who are struggling to bring meaning out of sea of data and reports from Amazon.

Challenges of FBA Accounting

Though amazon reports are very detailed but they become meaningless for FBA sellers whoare small teams to individual sellers not having enough time to make sense out of thesereports and consolidate these for their distinct bookkeeping, reporting and tax purposes.

Another challenge is the inherent limitation of Amazon transactions reports that do not provide the product wise segregation of important spends e.g. the marketing and storage fees.

Limitation of Available Amazon Reporting Tools

There are many tools available that integrate with Amazon to present the consolidated performance of your SKUs e.g. SellerBoard and Shopkeeper, however, these tools are not accounting tools so you are never able to reconcile the numbers back to the accounting record or the actual cash in bank. There are many possibilities of going wrong with these tools specially if not properly set-up or where you miss out on inputting important costs. We have come across many businesses that were appearing profitable over these tools but in loss as per the accounting data and vice versa.

Why SKU wise performance is important

Amazon businesses operate with a very high competition and a very high investment in stock making the decision to discard non profitable SKUs very important. This is only possible if you have an exact analysis of SKU wise profitability to make informed decisions for your next ordering and also making decision on which SKUs to focus on and which ones to discontinue.

Inventory Planning

Paying correct taxes

Amazon businesses usually have a very high sales volume therefore the correct accounting of GST or VAT on sales is crucial to the profitability and not end up paying too much or too less tax. Also, with most ecommerce businesses across borders there is no possibility to claim input tax. This makes the accurate reporting of output tax and accounting for the avenues to save very important. We have witnessed many reporting tools unable to accurately calculate the sales or account for the refunds there for businesses end up paying an incorrect tax.

Book a meeting today to help us take care of your worries with our years of experience managing accounting for Amazon businesses.

Cashflow and Forecasts

Most FBA sellers have this big challenge of not being able to manage their cashflows and this stems for not finding time to do the extensive number crunching. This causes the business to suffer greatly both in scenarios of low or unutilized business cash. Which cash deficit is understandable issue, a surplus cash may mean the business losing out on important opportunity to invest more in the inventory and generate higher margins. Most FBA sellers fail to develop a robust financial planning model necessary for better decision making and strategy formulation.

Accounting and Bookkeeping Tools

There are some very strong tools available in the market to manage FBA business’ bookkeeping e.g. QuickBooks, Xero and integrations such as A2X. All these tools and plugins work seamlessly provided correctly set-up and managed.

Banking and Payment Gateways

Setting up the most cost effective Payments platform is crucial to FBA sellers. Majority of Amazon business do global sourcing, therefore are subject to extensive FX exposure. You would require a banking/payments gateway that is not only safe but also extremely efficient and cost effective.

Are you an FBA seller facing all the above challenges, no need to worry, Outback Accounting with years of expertise supporting ecommerce businesses have all the right solutions for your business. From setting up the company to presentation of business performance reports, we specialize in helping you out at each stage of your business. Book an appointment now to help us understand your current accounting processes and present the most suitable and cost-effective solution tailored to your requirements.

Why Outback Accounting?

We are partners with Payoneer, OFX, Xero, QuickBooks, Futrli and A2X, industry’s most powerful accounting and financial tools in the market supporting ecommerce businesses’. With years of experience servicing our satisfied clients we can make accounting a breeze for you.