Bookkeeping for Amazon Sellers: Software & Accounting Guide to 2025’s Best FBA Practices
Amid all its complexity, bookkeeping for Amazon sellers comes down to three major areas of success — the right software, tax processes, and more profit.

Managing finances as an Amazon seller can be complex. And life is complex enough.
Still, proper ecommerce accounting is crucial for measuring your profitability and ensuring compliance.
With constant platform changes and tax regulations that seem to become more confusing by the day, staying on top of your financial management is essential.
This comprehensive guide covers everything from the basics of accounting to advanced FBA strategies, tax compliance, and policy updates — like Amazon’s new deferred transactions policy.
What Is Amazon Bookkeeping? The Basics
Amazon bookkeeping is the process of recording and managing all financial transactions related to your Amazon business. It involves monitoring sales revenue, FBA and seller fees, Amazon payouts, returns, reimbursements, and tax obligations.
Without a clear picture, you will be driving blind.
For many Amazon sellers, success isn’t just about sourcing great products and optimizing listings. It’s about maintaining precise financial records. Whether you’re a new seller or an established merchant, mastering the fundamentals defines long-term success in the marketplace.
Bookkeeping vs. accounting: What’s the difference?
Although often used interchangeably, bookkeeping and accounting serve different functions in general, and specifically in your Amazon business …
Bookkeeping involves recording daily transactions, categorizing income and expenses, and reconciling accounts. It’s the systematic recording of financial transactions and serves as the foundation for all financial reporting. This includes tracking sales, fees, refunds, and inventory costs.
Accounting focuses on financial analysis, tax compliance, and business strategy based on records. In other words, it involves interpreting financial data to make informed business decisions, preparing financial statements, and ensuring compliance with tax regulations.
Good accounting helps you understand your business’s financial health and identify growth opportunities, from determining strategies, cutting out poor-performing SKUs, and carrying out best practices for ecommerce inventory management.
Cash vs. accrual accounting methods
Cash accounting is simpler, but more rudimentary than its accrual accounting sibling. It records income when the payment is actually received and records expenses when they’re actually paid. Easier to manage but may not accurately reflect your business’s financial status if there are timing differences between sales and payments.
Accrual accounting records income when it’s earned and expenses when they’re incurred, regardless of when money changes hands.
This provides a more accurate accounting picture of your business’s financial health and is usually required for larger businesses. For example, if you prepay an expense, that would be seen as an expense from a cash accounting standpoint, but as an asset from an accrual perspective.
Most serious Amazon sellers eventually transition to accrual accounting as their business grows.
If you don’t have accrual accounting, you will end up having huge swings between when your inventory is purchased (big cash expense) and when it is sold (big revenues), and it will be very difficult to manage and track your business’s profitability.
Ecommerce accounting software like Finaloop can streamline your processes by integrating with Amazon’s reporting systems, automatically categorizing Amazon transactions, and generating financial reports.
The right software can save countless hours of manual data entry and reduce errors. Unlike traditional spreadsheet methods or basic tools like QuickBooks, specialized ecommerce solutions provide deeper insights.
Creating an effective chart of accounts
A well-structured ecommerce chart of accounts is the backbone of your business’s financial management system. Your chart of accounts organizes all financial transactions into categories, making it easier to track performance and prepare reports.
Key components of an Amazon seller’s chart of accounts:
- Assets: Everything that your business owns, such as cash, inventory, accounts receivable, and equipment. Consider creating separate inventory accounts for each fulfillment method (FBA, FBM). Another possibility is to include an account for Amazon payments pending deposit (otherwise known as UDFs). Often a major Amazon pain point.
- Liabilities: Everything that your business owes to others, such as accounts payable, tax collected (not a P&L item), and loans (either internal or third-party). It is worthwhile to track taxes collected by states as long as you’re not including taxes in your P&L.
- Equity: Assets less liabilities, such as owner’s capital, retained earnings (from previous years), owner draws, etc.
- Revenue: Meaning, sales — the top part of the P&L. Try to break down revenue by marketplace (US, UK, Canada, etc.); and make sure to track Amazon reimbursements separately.
- Expenses: Cost of goods sold (COGS), fees (there’s quite a few of them), advertising costs, shipping costs, and operating expenses. Detailed subcategories for different fees help immensely (referral, fulfillment, storage).
A properly structured chart of accounts helps you:
- Generate accurate financial statements
- Analyze profitability by looking at different areas
- Track KPIs (key performance indicators) and benchmarks
Financial statements Amazon sellers should track
To keep a granular picture of your Amazon business, you should be reviewing these essential financial statements on a weekly basis:
This statement summarizes revenue, costs, and expenses over a specific period, typically monthly, quarterly, or annually (if using Finaloop, you’ll have this on a daily basis). It reveals your business’s profitability and helps identify areas where you might be overspending or underperforming … or perhaps not charging enough.

The balance sheet shows your business’s assets, liabilities, and equity at a specific point in time. It provides a snapshot of what your business owns (assets), what it owes (liabilities), and the resulting net worth (equity). Significant assets include inventory and accounts receivable or UDFs (money Amazon owes you), along with accounts payable (money you owe to others, like your suppliers).

Tracks the movement of cash in and out of your business. It helps you understand your liquidity and ensure you have enough cash to cover expenses + investments and can help you build a forward-looking forecast.
Amazon sellers should pay particular attention to cash flow since Amazon’s payment schedule can affect when money is actually received. This statement is more operational and slightly less financial than the P&L.

A tax report compiles all sales transactions and categorizes them based on applicable tax rates and jurisdictions. While Amazon collects and remits tax to the authorities, sellers need this report. It is your responsibility to register for a tax permit and report these taxes in every state in which you have a “nexus.”
Categorizing Amazon income and expenses
Proper categorization of income and expenses fuels good reporting and keeps you tax compliant.
Income Sources:
- Amazon marketplace sales
- Reimbursements for lost or damaged inventory
- Affiliate earnings via Amazon Associates
- Wholesale orders through Amazon Business
- Other platform sales (if you are multichannel)
Common Expenses:
- Seller fees
- Advertising costs
- Shipping and fulfillment costs
- Product costs
- Software subscriptions
- Storage fees
- Professional services
- Payroll
- Insurance
- Office supplies and equipment
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5 Best Accounting Software for Amazon Sellers

1. Finaloop
Finaloop is an automated, full bookkeeping service for ecommerce businesses selling on online store platforms like Shopify or Woocommerce or marketplaces like Amazon, Walmart, eBay, etc.
Finaloop is different from Quickbooks and Xero in that it includes not only an accounting software but also an accounting service as well as its own in-house app integrations.
Our integration connects to your Amazon Seller Central account as well as other relevant apps to integrate all of your data into your books. We also have an inventory tracking tool, accounts receivable (i.e., invoices) and accounts payable (i.e., bills) management, automated transactions categorization as well as expert bookkeeping and tax support.
At prices starting from $155 per month (depending on your expected annual sales), it costs more than the basic plans of Quickbooks and Xero since it includes accounting services as well as the app integrations.
2. Quickbooks Online
Intuit’s Quickbooks Online is one of the most well-known and widely used accounting software in the U.S. They offer many features, reports, and a large pool of integration options for ecommerce sellers (e.g., eBay, Paypal, etc.) as well as some third-party integrations for an extra fee (such as A2X to integrate to your Amazon store).
A key point that is important to keep in mind is that Quickbooks is an accounting software only and not an accounting service. If you don’t have accounting or bookkeeping knowledge, Quickbooks can be fairly time consuming and complex.
On the other hand, Quickbooks can be a good fit for you if you have intermediate to advanced accounting knowledge (this is why it’s a preferred choice for many CPAs). At a minimum, you should be familiar with double-entry accounting (i.e., debit and credit), balance sheets, owner’s equity, bank reconciliations, and creating a relevant chart of accounts for your business. If not, any money you save by managing your financials yourself may be lost when you need to pay a CPA to correct the books come tax time.
Prices start from $35 for the Simple Start edition but you would likely need to upgrade to a higher tier of $65 or $99 per month to get the functionality you need to manage your books. This price doesn’t include necessary app integrations, such as A2X which starts at $29 a month (per integration) but moves to $59 per month if you have more than 200 transactions (prices alternate based on integration).
3. Xero
Xero is another popular accounting software used by many accountants and bookkeepers. It’s user friendly and offers many of the same features as Quickbooks Online (double entry accounting, reports, bank reconciliation, inventory module and a lot of integration options).
While Quickbooks Online is more common in the US, Xero may be a better option for mid to large size businesses since it offers access for unlimited users (Quickbooks offers up to 25 users).
Similar to Quickbooks, it offers multiple third-party integrations with Amazon Seller Central, like A2X and Zapier, for an extra monthly fee. Xero is an accounting software only and still requires accounting to be done by you or a bookkeeper or accountant.
Prices start at $29 a month but you may need to upgrade to the $46-$69 a month plan for your needed features. App integrations are an extra fee depending on the specific integration added. As an example, A2X starts at $29 a month (per integration) but moves to $59 per month if you have more than 200 transactions.
4. Freshbooks
Freshbooks is an accounting software that is known to be relatively easy to set up and use. Freshbooks is more limited with its features than Quickbooks but also is available at a lower price.
It offers invoicing and basic report options and you can use third-party integration tools like Zapier to integrate with Amazon Seller Central and sync your data.
Freshbooks offers an intuitive dashboard, good customer support, and basic income and expense tracking requirements for a good price. Having said that, it’s not great for large sellers and you need to pay extra for more than one user. In addition, similar to Quickbooks and Xero, it would require you to invest the time to learn the system and maintain your books yourself.
Plans start at $21 per month for the basic plan plus the cost of the third-party app integrations.
5. Wave
Wave is a free accounting software for small businesses (with a pro-upgrade option). It allows you to manage your transactions and invoices in one place.
While you can’t beat the price, there are no upgrade options. This could mean you may quickly grow out of it and need to start setting up your accounting software from scratch very soon.
With Wave, you’ll need to manually enter the transactions from your Amazon Seller Central account. The transactions won’t sync seamlessly like it does with some other options.
Selecting the right Amazon bookkeeping software: Step by step
When evaluating bookkeeping software for your Amazon business, look for these features.
Automated Integration with Amazon
Whether you sell with Amazon FBA or Amazon FBM, an automated integration with Amazon is needed to ensure the necessary data is pulled into your books.
At a minimum, your integration should bring in your Amazon sales, refunds and returns, disputes, fees (including selling fees, fulfillment service fees, etc.), loan balances and interest for Amazon Lending, and Amazon advertising. Additionally, the ability to bring in inventory and COGS data go a long way to help you best manage your financials.
Comprehensive Reporting Capabilities
Your software should generate financial reports; namely, profit and loss statements, balance sheets, and cash flow statements. Look for customizable reporting features that can break down profitability by product, marketplace, or time period.
Bank and Payment Processor Integration
Look for software that can connect with your bank accounts and other payment processors to reconcile all your financial transactions in one place. An additional feature that you should consider is which software has a triple reconciliation between your shops (Amazon), payment processors, and banks.
This is the only real way to make sure your data is accurate … all the time, on time.
User-Friendly Interface
The software should be intuitive enough for daily use while providing advanced features when needed. Look for good documentation and customer support to help you maximize the software’s capabilities.
Benefits of specialized ecommerce bookkeeping services
Before investing time setting up a new system, first consider if you are looking for a DIY bookkeeping software that you would spend the time managing yourself or if you prefer to outsource your bookkeeping to an ecommerce accounting service.
If you decide to go the accounting service route, Finaloop is the best option on the market. Unlike QuickBooks Online, Freshbooks and Xero, Finaloop offers accounting software and bookkeeping services from ecommerce accountants.
- Platform expertise: Professionals who are familiar with Amazon’s complex fee structure and reporting systems
- Time savings: Focus on your business growth while experts handle financial management
- Accuracy: Reduce errors in financial reporting and ensure tax compliance
- Scalability: Accounting services that can grow with your business
- Strategic insights: Professional analysis of data to inform your decisions
Recording Amazon sales and fees
Amazon charges various fees that directly impact your margins. Understanding these fee structures and learning how to accurately track these fees unlocks profitability analysis.
To track revenue and fees manually:
- Download reports from Seller Central on a regular basis
- Reconcile these reports with your bank deposits
- Make sure to account for fees, returns, and adjustments
Sales Tracking
This involves recording each transaction, including the sale price of items and total revenue earned. It’s also crucial for tax calculations and making informed decisions about inventory, strategies, and overall growth. Both on a SKU basis and as an entire business methodology.
Tracking FBA Fees
For sellers using Amazon’s Fulfillment by Amazon (FBA) program, fees include storage charges for keeping inventory in Amazon’s warehouses and fulfillment fees for order processing, packing, and shipping. By closely monitoring these costs, sellers can make better decisions about inventory and pricing.
Amazon Seller Fees
Every sale comes with associated platform fees that impact your bottom line. These may include referral fees, which are a percentage of each sale, closing fees for specific product categories, and high-volume listing fees for large inventories. Tracking these fees helps you understand your expenses per item and identify opportunities to improve your margins.
Returns and Reimbursements
When customers return items, Amazon may issue reimbursements to sellers, which must be properly recorded in your books. This process includes tracking returned units, the reasons for returns, and the amounts refunded by Amazon. Monitoring reimbursements helps sellers ensure they receive the correct compensation and can assess potential issues with product quality or customer satisfaction.
Understanding Amazon payouts and deferred transactions
Amazon Disbursements
Amazon disburses payments to sellers every two weeks, deducting applicable fees and charges before transferring funds. These settlements must be accurately recorded in financial statements to track cash flow and reconcile income with expected revenue.
Amazon Deferred Transactions
Deferred transactions occur when Amazon temporarily holds funds before releasing them to sellers. This happens in two key scenarios.
- Delivery Date Reserve (DDR) Transactions: Funds are held for a set period after an order is delivered. Typically, seven days (DD+7).
- Invoiced Orders: Transactions awaiting payment from the buyer. Amazon releases the funds only after the customer completes their payment.
Each transaction falls under one of two statuses.
- Deferred: Funds are still held (reserved) by Amazon
- Released: Funds have become available for payout
Amazon’s 2025 Policy Update: What’s Changed?
Amazon’s Deferred Transaction Report is now on-demand only and does not provide historical transaction data. Once a transaction is released, it automatically moves from this report to the Summary and Transaction Reports. To clarify, the sales and fees from the orders appear in the report only upon the release of funds.
Managing COGS & inventory
Cost of Goods Sold (COGS) represents the direct costs of products (in general, and specifically, those) sold on Amazon. Accurately tracking COGS is crucial for determining profitability and tax reporting.
- Product purchase costs
- Inbound shipping (freight-in)
- Import duties and customs fees
- Packaging and labeling costs
When you carry out accrual-based accounting, you recognize inventory in your books and only recognize an expense (COGS) when inventory is sold. The question arises …
Which inventory are you actually selling at a given time?
Let’s say you buy inventory on January 1, March 1, and May 1, and each has a different cost. Which cost do you recognize when you sell that inventory?
Average Cost: Calculates an average cost for all similar inventory items. This can be useful for sellers with infrequent inventory purchases at similar prices, as it just averages everything out.
FIFO (First-In-First-Out): Assumes the first products purchased are the first ones sold. This method is generally preferred for Amazon sellers as it aligns with how Amazon typically fulfills orders (think of the supermarket trying to get rid of the old milk cartons first, by putting them in the front of the fridge).
LIFO (Last-In-First-Out): Assumes the most recently purchased products are sold first (think of yourself, trying to get the newest milk carton out first). This is less common for Amazon sellers and problematic in general from accounting standards perspective, although it could have tax advantages.
Tax Compliance & Obligations for Amazon Sellers

Income tax vs. sales tax
Amazon sellers (like most businesses) must manage two distinct tax obligations — income tax and sales tax.
Income tax applies to business profits and must be reported regardless of business structure. Whether you operate as a sole proprietor reporting on Schedule C or as an LLC or corporation filing separate returns, all Amazon income (along with your other income) is taxable.
Sales tax, on the other hand, is collected from customers and remitted to the state and other local tax authorities.
With Marketplace Facilitator laws in effect across most states, Amazon handles much of this collection and remittance process, but sellers remain ultimately responsible for compliance. This is especially complex for multi-channel sales when non-marketplaces (i.e., Shopify) are involved.
Nexus laws and how they impact Amazon sellers
Nexus means that there is a tax connection between your business and a jurisdiction. Physical nexus occurs when you have inventory, employees, or offices in a state. Economic nexus is triggered when sales exceed certain thresholds, typically $100,000 or 200 transactions, which vary by state.
Inventory stored in FBA warehouses can create a physical nexus in those states. This means you may have tax obligations in multiple states, even if your business is based in just one location. Marketplace Facilitator laws help manage sales tax collection, and today, nearly all states with sales tax have marketplace facilitator laws requiring Amazon to collect and remit sales tax.
Best tax strategies for Amazon sellers
Deductible business expenses
Maximize legitimate tax deductions by tracking all business expenses (and making sure to bifurcate between your business and non-business expenses).
Common deductions for Amazon sellers include:
- Product costs and shipping
- Amazon fees (referral, FBA, storage)
- Advertising and marketing expenses
- Software subscriptions and tools
- Home office expenses for small businesses
Tax-saving tips for ecommerce entrepreneurs
It is definitely worth considering forming the right kind of business entity — S corps can provide self-employment tax savings for profitable businesses, but you need to ensure that it makes sense from a cost-benefit analysis. Another idea is to make estimated quarterly tax payments to avoid underpayment penalties.
Sales tax collection and reporting
States in the US that impose taxes have passed legislation requiring marketplaces to collect and remit taxes on behalf of third-party sellers. Putting the onus on marketplaces means that brands selling on Amazon or Walmart are generally not obligated to collect or pay tax on their sales.
However, if these brands have nexus in a state, they must register and file a tax return there.
It is worth noting that Amazon functions, in general, as a marketplace facilitator for tax purposes, responsible for collecting and remitting tax, although sellers may still need to file returns in certain states (Pennsylvania and California are not the same).
Multi-channel sales tax considerations:
- Amazon generally handles tax for Amazon sales in marketplace facilitator states
- Sellers must handle tax for non-Amazon channels themselves (like Shopify)
Sales tax compliance steps:
- Determine where you have nexus
Map your FBA inventory locations, track sales by state to identify economic nexus triggers, and document physical presence in any states.
- Register for tax permits in states where required
- Configure tax collection settings on non-Amazon platforms
- Track and document all taxes collected by Amazon (through marketplace facilitator laws) and by your business on other platforms
- File tax returns according to each state’s requirements
Some states require returns even when Amazon collects all tax, and filing frequencies vary.
Tax software, such as TaxJar, Avalara, or Numeral, significantly simplify this process.
Reconciling Amazon payments and bank statements
Regular account reconciliation ensures that your records accurately match your transactions and helps identify discrepancies or errors.
Reconciliation best practices:
- Compare Amazon deposits to reports
- Match transactions with fees and returns
- Identify and investigate any discrepancies
- Adjust your records as needed
- Document all reconciliation activities
Amazon FBA Accounting: Special Considerations

Differences between Amazon FBA and FBM accounting
FBA (Fulfillment by Amazon) sellers face unique accounting challenges:
- Tracking inventory stored across multiple Amazon fulfillment centers
- Managing fee structures (fulfillment, storage, and long-term storage)
- Accounting for inventory lost or damaged in Amazon’s warehouses
- Handling reimbursements from Amazon for customer returns
FBM (Fulfillment by Merchant) sellers have different considerations:
- Tracking their own inventory storage costs
- Managing shipping expenses and supplies
- Reconciling carrier fees and shipping insurance
- Accounting for customer returns handled directly
The primary difference between FBA and FBM accounting lies in how fulfillment costs are recorded and managed.
FBA sellers must account for Amazon’s fulfillment fees, while FBM sellers track their own logistics expenses. This difference impacts cash flow, expense categorization, and tax deductions, making it essential for sellers to adapt their accounting practices based on their fulfillment method.
Tracking FBA storage and fulfillment fees
Understanding Amazon FBA Fees
Amazon charges FBA sellers storage fees based on the volume of inventory stored in its fulfillment centers. These fees vary depending on the time of year, with higher rates during peak seasons.
FBA sellers pay fulfillment fees for Amazon’s picking, packing, and shipping services, which are calculated per unit based on weight and size. These fees cover the convenience of Amazon handling logistics, but can impact margins.
Since these fees are deducted directly from Amazon payouts, they must be carefully recorded to maintain accurate records. Mismanaging these expenses can lead to overstated profits and cash flow issues.
Breakdown of Amazon seller fees:
- Referral fees
Category-specific fees: Most categories: 15%, Electronics: most 8%, Jewelry: 20% (capped), Amazon device accessories: 45%.
- Fulfillment fees (other than apparel and dangerous goods)
Based on shipping weight, dimensions, product size, and fee category. Small Standard-size items: $3.06 to $3.65 per unit. Large Standard: $3.68 to $6.92 per unit. Oversize items: $9.64 to $194.95+ per unit. Multi-channel fulfillment: Higher rates for orders fulfilled through other channels.
- Monthly subscription fees
Determined by time of year, volume, size, and length of time inventory is in the warehouse. Individual seller: No monthly fee, but $0.99 per item sold. Professional seller: $39.99 monthly flat fee.
- FBA storage fees
Monthly storage: $0.78 to $2.66 per cubic foot (general standard size, varies by season). Long-term storage fees apply to items stored for more than 180 days.
- Advertising costs
Sponsored Products, Brands, Display: Cost-per-click model.
Common Amazon Accounting Mistakes & How to Avoid Them

Misclassifying fees & reconciliation failures
Amazon charges various fees that can impact profitability in different ways. Categorizing these fees improperly can distort your profit analysis. Create detailed sub-accounts for different fee types (e.g., referral, fulfillment, storage, advertising) and regularly review Amazon reports for proper classification.
Infrequent reconciliation leads to compounding errors and financial misunderstandings. Regular reconciliation identifies issues early before they become problems.
Ignoring inventory accounting best practices
Poor inventory management has a direct impact on financial statements and tax reporting. Implement consistent inventory valuation methods, conduct regular physical inventory counts, and adjust for damaged or obsolete inventory.
Additionally, ensure that you track inventory across all warehouses and sales channels to maintain accurate COGS calculations.
Overlooking sales tax compliance
Despite Marketplace Facilitator laws, sellers remain responsible for tax compliance. Utilize specialized software to track changing nexus thresholds and requirements across jurisdictions. Register for tax permits where needed and maintain records of all taxes remitted, whether by Amazon or directly by your business.
Hiring An Amazon Bookkeeper: Is It Worth It?

Deciding to hire a professional Amazon bookkeeper is a critical turning point for many sellers as their businesses grow and financial complexity increases.
Whether you’re struggling to keep up with day-to-day bookkeeping tasks or looking to optimize financial operations, understanding when and why to bring in expert help can impact your business’s success.
Signs you need help with Amazon accounting
Several key indicators suggest it’s time to consider professional help with your Amazon bookkeeping. Warning signs include falling behind on reconciling settlements, struggling to track inventory costs accurately, missing tax filing deadlines, or spending excessive time on accounting tasks that take you away from core business activities.
How an Amazon bookkeeper can save you time and money
An experienced bookkeeper should automate financial tracking, ensure tax compliance, and identify opportunities for cost savings. Hiring an Amazon bookkeeper can help you avoid penalties, optimize tax deductions, and gain a clear picture of profitability. Their expertise allows you to focus on scaling your business while they handle the tedious tasks.
Mastering Bookkeeping for Amazon Sellers & Ecommerce Businesses
Successful accounting requires understanding the platform’s unique fee structure, implementing proper inventory practices, and ensuring comprehensive tax compliance.
Ecommerce accounting practices differ from traditional business accounting and require specific expertise and systems to give you the on-time accounting you need to run your business and make it thrive.
Selling on Amazon requires more than great products and marketing.
It demands meticulous financial management and organized accounting practices. From tracking complex fees to managing multi-state tax obligations, sellers must maintain precise records to understand their profitability and make better decisions.
The foundation of this success lies in tracking sales, managing inventory, and monitoring all associated costs + fees.
Without a proper accounting system, sellers risk financial mismanagement, tax penalties, and missed opportunities for business growth. Keeping accurate records not only ensures compliance but also allows sellers to optimize strategies, manage cash flow, and make data-driven decisions.
As your business scales, the complexity of your accounting will increase, making it even more critical to have a well-structured process in place.
Now is the time to take action.
Implement the strategies outlined in this guide to streamline your accounting and set your business up for long-term success. Consider using specialized accounting solutions to automate your financial management and reduce the manual burdens. By prioritizing financial organization, you can focus on growing your Amazon business with confidence and clarity.
Finaloop’s ecommerce accounting services automatically process your Amazon data, track all fees and expenses, and generate actionable financial insights.
Our platform is designed for online sellers, with built-in Amazon expertise and integration capabilities.
All with real bookkeepers on the backend.
Excited to do your bookkeeping? Didn't think so.
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Accurate ecommerce books, done for you.
FAQs
Amazon’s complex fees, inventory tracking, and tax rules require specialized accounting — a general accountant won’t cut it. Hiring an expert ensures compliance, accurate financial records, and informed business decisions.
Yes, Amazon collects and remits tax under Marketplace Facilitator laws, but you still need to keep records, report sales, and handle tax for non-Amazon sales. Ignoring tax obligations can lead to compliance issues, so consult a tax expert.
Amazon has a multi-faceted fee structure, which includes referral fees, FBA fees, subscription fees, FBA storage fees, and others.
The best accounting software for Amazon sellers is Finaloop, as it is designed for ecommerce brands. Finaloop offers seamless integration with Amazon Seller Central, including inventory tracking, automated transaction categorization, and tax support. Plus, it provides full bookkeeping services from ecommerce accountants, all at a lower cost than hiring a bookkeeper.
Amazon does not use a single accounting system for sellers but provides financial reports through Amazon Seller Central, which sellers can integrate with their own bookkeeping software.
Sellers typically use third-party tools like Finaloop, QuickBooks, or Xero to organize their financial data. Amazon provides detailed transaction records — settlement reports, sales tax reports, and account statements — which sellers must reconcile in their own accounting system.
No, you do not need a business account to sell on Amazon. Individuals can start selling with a personal account, known as an Individual Seller account, which is best for those selling a small number of items.
However, for those looking to scale their business, track expenses efficiently, and separate personal from business finances, having a business bank account and using a Professional Seller account is highly recommended.