Amazon Accounting

Amazon Accountant - Cyndi Thomason

Are you making sales on Amazon? Do you need help to ensure your Amazon sales are profitable? Look no further than Profit First author and Ecommerce Bookkeeper Cyndi Thomason.

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Who needs an Amazon Accountant?

If you sell on Amazon Seller Central, then you need an accountant or bookkeeper who knows that platform. An Amazon accountant ensures that you are getting the correct data into your books from Seller Central so you can monitor and track the vital components of your sales, inventory activity, sales tax and of course, the multitude of Amazon fees. You also want to ensure that your Amazon bookkeeper is familiar with how the books must be structured when you are ready to sell your business. We have worked with hundreds of Amazon clients and most of them went into the business with an exit strategy in mind. We build the books anticipating the exit because it helps make your business more appealing to a buyer. It also provides you with key insights into your business so you can manage it for profitability from the start.

Cyndi Thomason – Amazon Bookkeeper

Cyndi Thomason

Having an Amazon accountant help you monitor the return you are actually receiving on ad spend, based on sales increases instead of other marketing metrics will keep the proper focus on profitability, not just increased sales revenue.

What does an Amazon Accountant do differently than your local accountant that works with a variety of businesses?

As an Amazon bookkeeper, we realize the importance of your inventory. It is your lifeline. It’s also your cash flow nightmare.  To fully understand your profitability, you must manage your inventory and account for it with as much precision as possible. Even though you may just be starting out, you can’t afford to take your eye off the inventory ball. For that reason, and because it will be important when you sell your business, we use Modified Cash or Modified Accrual Accounting for your books. This method gives you the benefits of accrual accounting where it matters—matching revenue and cost of goods sold expenses in the period where the sale occurs. And it comes without all the headaches of accruing operating expenses such as your insurance or payroll. Of course, we can do that if it’s necessary for your business, but most Amazon businesses don’t require that until they get to be very large.

What does an Amazon Bookkeeper do differently than your local accountant that works with a variety of businesses?

An Amazon accountant will also ensure that your chart of accounts is giving you the proper level of detail for each of your settlements. Our clients have thousands of orders a month that they monitor in Seller Central. We import that information into your accounting system in a summary entry based on your settlement payouts. We use a software system called A2X to integrate with our accounting software to ensure that we capture the correct detail in the month it occurred. We work with our clients using both QuickBooks Online and Xero by mapping and integrating A2X.

In addition, your Amazon bookkeeper should also be comfortable navigating the reports needed from Amazon Seller Central. You will need to give them access to the settlement and payout reports and the inventory reports. If you sell in multiple countries, your Amazon accountant will also need access to those accounts. You may also use Amazon Pay. If so, your Amazon bookkeeper should know how to get the data out of those reports. It’s so easy to miss steps as you set up all of these accounts. One of the benefits you will receive from working with an Amazon accountant is they should be able to help you if something is not working correctly. Recently, one of our accountants found that a client had not set up their banking integration to Amazon Pay. As a result, $97,000 was being held at Amazon waiting to be disbursed. Your accountant must know how to navigate these platforms in order to be your partner in the business.

One of the benefits you will receive from working with an Amazon accountant is they should be able to help you if something is not working correctly. Your accountant must know how to navigate these platforms in order to be your partner in the business.

Let’s see if The SmartBooks Program is right for you

Your business is performing and you need good numbers, yet you can’t do it all. Our SmartBooks Program is a bookkeeping service designed to free up your time.

What does an Amazon Accountant do differently than your local accountant that works with a variety of businesses?

There are many applications available in the ecommerce space that will track your inventory. Most of our clients use everything from excel spreadsheets, Inventory Lab, Restock Pro, Dear Inventory, Seller Legends, to much more expensive and customized solutions. An Amazon accountant will want access to these systems in order to pull the reports needed for properly syncing or “truing up” inventory between your physical counts on hand at Amazon, your other warehouse, items that are prepaid and in transit, and your financial records. You should be able to either share access to these systems to minimize your role in the process, or at a minimum, provide the reporting so your Amazon bookkeeper can pull the information and make the proper entries in your book.

At bookskeep we take our knowledge gained from hundreds of Amazon clients along with their inventory and cash flow challenges and we add our Profit First expertise to give you sound, accurate data to use for tax filings. We also help you understand this data so you can make the best decisions to ensure profitability of your business. Isn’t that the point, after all? Profitability must be examined at the big picture level by monitoring your gross margin for the business, but also at the product level. Which products are selling below our target margin and how can we improve them?

Finally, ecommerce businesses are typically big advertisers. Amazon Pay Per Click can eat up all your profits. Having an Amazon accountant help you monitor the return you are actually receiving on ad spend, based on sales increases instead of other marketing metrics will keep the proper focus on profitability, not just increased sales revenue.

Amazon Bookkeeping FAQs

When do you need an Amazon Accountant?

The day you make a sale is the day you should start monitoring your numbers. While I understand this can be a big undertaking at the beginning of your business when your time and money are in short supply, I also know that you must keep score to know if you’re winning. If you’re spending money and it is generating no return, then you need to take a step back. If you want to get off on the right foot but “do it yourself” we have a 1-1 training program called SmartStart. In this program, we will teach you how to do your books and how to review and understand your reports so you can understand your numbers. Once your business has grown and you are profitable enough to have someone else perform the work for you, our SmartBooks program might be a better fit. With our SmartBooks program, you will have a dedicated Amazon bookkeeper handling your back-office accounting for you so you can focus on other aspects of the business.

You need an expert partner that will help you grow your business based on their insights. You don’t need to become an expert yourself so that you can train your accountant. You need a partner, not another project.

Let’s see if The SmartBooks Program is right for you

While you concentrate on all the other details in your business, we take care of the accounting and provide financials you can trust.

Where can I Find an Amazon Accountant – Do They Need to be Local?

The beauty of ecommerce is that you get to work from anywhere and so does your team! At bookskeep, our clients reside or travel as digital nomads all over the world and they sell on Amazon platforms in multiple countries. These businesses and their owners are truly multi-national, small businesses.  To work with us, we do require that your books be prepared in U S Dollars and the banking for the business be based on US banks. We have Profit First Ecommerce Guild members that we partner with in multiple countries such as Canada, UK, Austria, United Arab Emirates, etc. If we can’t serve you, we have great contacts that can help you outside of the United States.

Why do you need an Amazon Accountant?

If you sell on the Amazon’s Seller Central platform you need an Amazon accountant that can give you reliable financial books and help you navigate the challenges of inventory, cash flow, sales tax, and ultimately an exit from the business. You need an expert partner that will help you grow your business based on their insights. You don’t need to become an expert yourself so that you can train your accountant. You need a partner, not another project.

Start making data-driven decisions and become more profitable today.