Bookkeeping And Accounting Tips For Amazon Sellers

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Bookkeeping tips by bookkeepers for Amazon sellers can be useful for Amazon sellers of any size. Assuming you are an active Amazon seller it implies that you have effectively set up your Amazon seller account, bought products and listed them on Amazon, and opened a bank account to get cash from Amazon. At this stage, you need to zero in on what you specialize in: run your store and drive sales. In this way, it turns out to be not difficult to delay on one of the main business errands - your online business' bookkeeping, accounting, and tax.

Appropriate bookkeeping is significant for compliance reasons, yet additionally for tracking your accounts, understanding revenue streams, calculating costs, and guaranteeing profitability. The following are 5 useful tips to assist you with beginning.

Set up Your Business' Bookkeeping Processes

You presumably ask yourself, when is the perfect opportunity to set up bookkeeping, accounting, and tax processes for your Amazon business? Our response is (clearly… ) in the near future.

Bookkeeping is the most common way of recording and classifying income and expenses and reconciling them with your bank and credit card transactions. There are a few choices for directing Amazon seller's bookkeeping: (I) you can perform bookkeeping yourself utilizing Excel or a DIY bookkeeping programming like QuickBooks or Xero; (ii) enlist traditional bookkeeper services, or (iii) draw in with a cutting edge platform that performs bookkeeping for yourself and presents your financial data on the personalized dashboard like Global FPO. Your continuous bookkeeping work will be the reason for your business tax planning and tax filing.

For the readiness and filing of your business tax returns, you should work with a CPA. Global FPO offers both bookkeeping and CPA services on one rooftop.

Account for Selling Fees

On the off chance that you use a marketplace platform like Amazon, the offer of products over these platforms is commonly connected with selling fees. Amazon selling fees commonly comprise of an annual or monthly lump sum subscription fee, and a rate fee of the overall exchange amount.

Your bank account statement will show your Amazon payouts. Nonetheless, it is vital to understand that these payouts don't really mirror your gross income, but rather they mirror your net income, that is - gross income minus refunds, chargebacks, merchant and processing fees, and other FBA fees.

From the viewpoint of a bookkeeper for Amazon sellers, it is critical to appropriately record your gross (sales minus merchant fees and other expenses) and independently record your merchant fees as COGS (the level of sales segment) or a piece of your operating expenses.

The data with respect to your orders, refunds, fees, charges, and payouts can be found in your transactions report on Amazon Seller Central.

Account for Refunds

Each Amazon seller refunds customers occasionally. The refunds can be for returned or damaged products, or when a customer chooses to cancel the request on Amazon before the item is even shipped

For bookkeeping and tax purposes, you should book your sales when you satisfy a request, regardless of assuming you later discount the request to the customer. You should then book for refunds or returns independently, utilizing an alternate account. The refunds and returns will eventually diminish your top-line net revenue and your gross profit. Another great method for reconciling your Amazon refunds is by leading an Amazon account audit.

For this reason, we recommend having an account for refunds and returns in your chart of accounts and booking them independently from your Amazon-generated income.

Collect and Remit Sales Taxes

Assuming your eCommerce business sells products that are subject to sales tax in states you have "nexus" in, you should collect sales tax from your customers. Your business should then remit the sales tax to the significant states, and file a sales tax return with the important sales tax department.

While selling products on a marketplace, for example, Amazon, the Marketplace Facilitator laws commit the marketplace facilitator (for this situation Amazon), to collect and remit taxes for the seller's sake in specific states. In this way, it is critical to check whether the sales tax for these transactions was at that point collected and remitted to the applicable state by Amazon, so it won't be remitted two times (Amazon and the seller). It is essential to take note, that assuming your business has a nexus in a state where the Marketplace Facilitators law applies, you could in any case have to file a sales tax return in that state.

Numerous Amazon sellers decide to use a sales tax platform, which collects sales data from the various marketplaces and then, at that point, works out the sales tax due. It will likewise catch states that the Marketplace Facilitator laws don't matter and will give you an end-to-end Sales Tax solution that covers the whole United States. Sales tax platforms normally likewise offer sales tax return arrangement and filing, as well as "nexus" actually look at services.

According to a bookkeeping point of view, it is vital to book sales through Amazon in the wake of deducting sales tax. The explanation is that sales tax isn't essential for the Amazon seller's income (and isn't subject to income tax). The Amazon seller is an 'agent' for collecting and remitting sales tax from the customer to the pertinent state.

In bookkeeping, another normal account for an Amazon seller is "Sales tax liability". You should record the sales tax collected by the Amazon seller, which presently can't seem to be remitted to the state, as a liability for bookkeeping.

Sales tax determination, calculation, and collection, and overall handling by an Amazon seller can be confounded. Hence, numerous Amazon sellers set their accounts to compute and collect sales tax automatically.

Notwithstanding, it is essential to take note that marketplace platforms, including Amazon, regularly don't play out the whole nexus handling, and this is the responsibility of the Amazon seller. Likewise, Amazon doesn't collect and remit Sales tax in states that didn't take on the Marketplace Facilitator law. Eventually, an Amazon seller is liable for registering in the important states, filing sales tax returns with that state, and remitting the sales tax collected.

Selling on Amazon internationally

Numerous Amazon sellers sell in a few nations. Your business and financial data are introduced in a different Amazon seller sub-account for every country you sell in. For instance, assuming you sell your products in the U.S., Canada, and UK, Amazon will show the data about the business movement in every one of these nations in an alternate sub-account on Amazon Seller Central.

As a U.S.-based business, you should book and report sales generated inside the U.S., and sales generated external the U.S. Along these lines, for bookkeeping and tax purposes, it is vital to download and use the financial data accessible on the Amazon worldwide sub-account independently from the Amazon seller's U.S. account.

Also Read: Sales tax on Amazon: tips and tricks


As an Amazon seller, it is essential to set up your bookkeeping, accounting, and tax processes as soon as possible in your online business stage. This will make tax season more straightforward for you and will permit you to keep steady over your accounts continuously. It will likewise assist you with understanding your costs, so you can set the right prices for your products, and make your online business more profitable.

Assuming you began selling on Amazon a couple of months prior or a couple of years prior and didn't set up bookkeeping processes, don't be alarmed. Numerous Amazon sellers and other marketplace sellers can approach Global FPO even subsequent to launching their online business, and Global FPO can assist them with making up for lost time with their bookkeeping and account, and update it on schedule for tax season. We want to believe that you observed these 5 significant bookkeeping tips for Amazon sellers. Global FPO is ready to lend a helping hand and provide your business with a competent bookkeeper in Houston, Chicago, Nevada, or any other state in the U.S.A.

Global FPO? ( is an? Outsourcing Accounting firm consistently recognized for its exceptional outcomes and? strong work culture,?with 500+ happy and satisfied clients? across.?They provideeverything from straightforward tax return work, or basic bookkeeping, to advanced & complex Financial Statements to CPAs and accounting Firms implementing best industry practices & values. Their Accounting solutions are comprehensive, customized? to a unique business operating model, and use “best-of-breed” technology under a strong two-tier reviewing mechanism ensuring minimum? risk of error.?

Global FPO is a professional outsourcing and consulting organization offering services across the globe including USA, Canada, UK, Europe, Australia, New-Zealand, Japan, Dubai, and the Far East. GFPO experts provide services at competitive prices to our clients in the areas of:

  1. Bookkeeping & Controller level services
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To explore more? on?Global FPO?and?its?online Accounting/ Bookkeeping, Tax Return Preparation, Financial Statements, Accounting Advisory, Payroll? For processing and related Business Services contact us at:?

Phone (USA): +1 (832) 426-2521, +1 (347) 781 5928.or


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