Amazon Seller Bookkeeping Challenges
One of the biggest mistakes an Amazon Seller owner can make is neglecting bookkeeping & Accounting services. I know this sounds like a strong claim.
For most Amazon sellers and merchants who sell on multiple channels, figuring out how much inventory is worth is challenging. Failure to do so accurately can lead to an inaccurate balance sheet.
Managing Transactional Volume
In Amazon retail, as your business grows, you begin to deal with large chunks of data and transactions. Yes, lots and lots of transactions and chunks of data.
Among the common accounting challenges for amazon sellers is the issue of returns. Amazon gives its customers the ability to return products. Amazon returns are sorted into the following categories.
Sales Tax Liability
Amazon has over 90 fulfillment centers in 42 states across the USA. And in many cases, you have no choice in which fulfillment center Amazon sends your inventory to.
There are 3 main fees taken by Amazon: Sales Commission, FBA Sales Fees, and ACOS (Advertising Cost of Sales). Your fees can vary quite a bit depending on your product factors. Product category, size, advertising strategies and how long inventory sits at the distribution center all affect the fees you pay.
Bookkeeping for Amazon Sellers Included with:
- Accounts Receivable
- Accounts Payable
- Loans Payable
Accounting for Amazon sellers : Here's How it Works
1. You sell products on Amazon Platform, and the customer pays for their orders within the platform.
2. Every week, Amazon deposits a ‘settlement’ payment into your bank account. This payment includes the revenue from all of your sales, minus any transaction fees, returns or other deductions on your accounts.
3. MAC pulls the correct information about your financial transactions from Amazon and sorts it into tidy groups that perfectly align with each settlement payout.
4. MAC then posts this information as an invoice or journal into your cloud accounting system.
5. From here, you (or your bookkeeper or accounts) can reconcile the payments received with transactions made with ease.
While MAC does save you plenty of time and resources, it also grows with you. It takes roughly the same amount of time to crunch 100 transactions as it does look after 10,000.
MAC helps in accounting for Amazon sellers with the best accounting software for Amazon sellers like QuickBooks, which is helping you in managing your sellers account. with the help of online bookkeeping services you can manage your business financial services.