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A Complete Guide for AmAzon Seller
ACCountinG And BookkeepinG
Amazon accounting might sound complex, but with the right guide, it’s totally doable. For
Amazon sellers, handling finances is more than just crunching numbers—it’s about
understanding every cost and making sure your profits match up. From tracking fees and sales
to organizing expenses and taxes, getting Amazon bookkeeping right can boost your business
and make tax time a breeze.
This guide breaks down the essentials of amazon seller bookkeeping, covering the key
practices, tools, and tips to stay on top of it all. Whether you’re just starting or looking to level up
your bookkeeping game, having clear, organised financials lets you make better decisions, scale
confidently, and avoid any money-related surprises.
» What is Amazon Bookkeeping?
Amazon bookkeeping refers to the unique form of bookkeeping where companies that are in
business through the Amazon platform keep track, list, and record financial transactions.
Whereas normal bookkeeping covers typical transactions and processes, Amazon Bookkeeping
requires specialised skills, such as dealing with high numbers (hundreds or thousands) of
records daily for each product sold; tracking expenses involved in every transaction like
shipping fees, advertising fees, different selling fees by Amazon, and so on. Efficient
bookkeeping for Amazon sellers not only secures precise financial statements but also helps
track profit margins and, in the end, allows for data-driven decisions that support growth.
With the right tools or software, Amazon seller bookkeeping can automate much of this
process—from recording daily sales, returns, and refunds to other financial data specific to
each growing platform. Amazon accountants offer ecommerce accounting services beyond
the basics; some provide specific support to help sellers get their finances right so they can
remain tax compliant and identify key metrics.
While bookkeeping is purely focused on transactions, Amazon accounting looks more at
digesting financial statements, offering insights to provide a picture of tax planning, and
encouraging further financial advice with informed perspectives. Amazon accountants are
experts in these areas, delivering advice that allows Amazon businesses to achieve financial
security and growth.
» Importance of Amazon Accounting and Bookkeeping
• Compliance with Australian GST Laws
Amazon sellers in Australia are required to comply with the Goods and Services Tax (GST)
regulations. Proper amazon bookkeeping helps in recording all GST-inclusive transactions and

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simplifies the reporting process, reducing the risk of penalties. Accurate amazon seller
bookkeeping ensures that sellers meet the Australian Taxation Office (ATO) requirements,
making GST collection and remittance straightforward.

• Track Amazon FBA Fees and Inventory Costs
For those using Fulfilled by Amazon (FBA), amazon FBA accounting plays a significant role in
managing costs associated with storage, packaging, and shipping. These fees can add up
quickly, so dedicated accounting for amazon sellers enables clear visibility into FBA expenses.
Knowing these costs helps sellers evaluate profitability more accurately, ensuring that they’re
not losing money to unexpected fees.
•
Improve Cash Flow Management
Managing cash flow is vital for any Amazon seller, especially given the frequent and high-volume
transactions involved. Effective amazon bookkeeping helps track revenue, expenses, and
profits, providing a clear picture of the cash flow situation. By categorising expenses and
tracking sales, sellers can maintain a healthy cash flow, which is essential for paying suppliers
on time and investing in new stock.
• Optimise Tax Deduction Opportunities
Amazon businesses in Australia may qualify for certain tax deductions. Through efficient
bookkeeping for amazon sellers, business owners can accurately track deductible expenses like
shipping, packaging, and marketing costs.
This not only ensures compliance but also allows sellers to minimise their tax liability by taking
full advantage of eligible deductions. Amazon seller bookkeeping can simplify tax time,
reducing the workload and making sure sellers don’t miss out on valuable tax benefits.
• Support Growth and Scalability
As Amazon grows, so does the complexity of its finances. Reliable accounting software for
amazon sellers is a scalable solution that simplifies bookkeeping tasks, allowing sellers to
focus on business growth rather than manual data entry. With real-time insights into sales and
expenses, amazon FBA accounting provides sellers with the tools to make informed decisions
about scaling operations, managing inventory, and introducing new products.
• Enhance Inventory Management and Profit Tracking
Managing inventory levels is essential for Amazon sellers, and effective amazon bookkeeping
ensures stock levels are balanced to prevent overstocking or stockouts. For those using FBA,
Amazon FBA accounting further tracks storage costs and inventory turnover rates. This data
provides sellers with valuable insights into which products perform well and where adjustments
are needed, leading to better profit margins and fewer losses.

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• Boost Financial Decision-Making
Accurate amazon seller bookkeeping provides a solid financial foundation for strategic
decision-making. With a clear view of revenues, expenses, and overall profitability, sellers can
set realistic growth goals, determine product pricing, and identify opportunities to cut costs.
Leveraging accounting software for amazon sellers can streamline these processes, offering
real-time financial insights that empower sellers to make data-driven business decisions.

» Best Amazon Accounting Software
Here are some of the most used accounting software which are not just used for amazon
accounting but other ecommerce platforms as well:
1. Xero
Xero is a cloud-based solution ideal for amazon seller bookkeeping, offering an intuitive and
user-friendly interface that caters to businesses of all sizes. It’s especially useful for Australian
Amazon sellers looking for seamless financial management.
Features:
•
Integration with Amazon for automated transaction tracking and amazon bookkeeping.
• Real-time cash flow monitoring and expense tracking.
• Automatic bank feeds that streamline bookkeeping for amazon sellers.
• Comprehensive reporting features for informed business decisions.
• Customisable invoicing, helping amazon accountants maintain a professional image.
2. QuickBooks
QuickBooks is a popular choice for accounting software for amazon sellers due to its simplicity
and functionality, making it ideal for both small and large Amazon businesses. Its advanced
features simplify every aspect of amazon seller bookkeeping, from payroll to tax compliance.
Features:
• Syncs with Amazon for efficient amazon fba accounting.
• Payroll and tax management tailored to e-commerce needs.
• Detailed financial reports, supporting amazon seller bookkeeping.
• Real-time data syncing across devices for easy access anywhere.
• Expense and income categorisation for streamlined bookkeeping for amazon sellers.


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3. Zoho
Zoho Books is a cost-effective option for accounting for amazon sellers, offering a range of
essential tools for small to medium-sized businesses. This software is ideal for those needing
reliable amazon bookkeeping without high costs.
Features:
• Automated reconciliation with Amazon for accurate amazon bookkeeping.
• Sales, inventory, and transaction tracking in real-time.
• Multi-currency capabilities, supporting international Amazon sellers.
• Detailed tax and GST reports for compliance.
• Customisable dashboards for clear insights, easing bookkeeping for amazon sellers.
4. NetSuite
NetSuite is an advanced ERP and accounting software for amazon sellers that is ideal for
growing or enterprise-level Amazon businesses with complex requirements. Its extensive tools
help manage finances and inventory at scale.
Features:
• Centralised dashboard for managing multiple sales channels, including Amazon.
• Advanced inventory and order management for amazon fba accounting.
• Comprehensive financial reporting and analytics for strategic insights.
• Automated workflows, improving amazon seller bookkeeping efficiency.
• Customisable tax management features for Australian compliance.
5. Sage
Sage is a powerful accounting software for amazon sellers that provides comprehensive
support for e-commerce businesses, focusing on ease and accuracy. It’s a preferred choice for
Amazon sellers needing accurate and timely amazon bookkeeping.
Features:
•
Integration with Amazon to automate amazon bookkeeping.
• Real-time reporting on sales, expenses, and profits.
• Strong inventory management, crucial for bookkeeping for amazon sellers.
• Automated invoicing and payment processing for time-saving benefits.
• Customisable tax and GST compliance for Australian amazon accountants.

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» Best Amazon Accounting Practices
Here are the best practices for Amazon accounting to save time and improve processes for
Australian Amazon sellers.
• Amazon Seller Bookkeeping Software:
Good amazon seller bookkeeping starts with selecting specialised e-commerce accounting
software. Choose software that automatically records transactions, sales, charges, refunds,
and Amazon fees. By automating these, sellers can save time and reduce the possibility of
manual data entry errors.
• Divide Business and Personal Transactions:
Keep personal expenses separate from business transactions to maintain accurate financial
statements, essential in a streamlined Amazon FBA accounting system. This simplifies tax
reporting and provides better insights into business performance.
• Track and Categorise Amazon Fees:
Amazon accounting for Amazon sellers should include tracking various fees accurately.
Organising FBA fees, storage, and shipping costs helps sellers calculate profitability on each
product and improve overall financial accuracy.
• Manage Inventory Costs:
Cost of Goods Sold (COGS) is an essential aspect of Amazon FBA accounting. Keep COGS
updated by recording purchase costs, shipping rates, and storage fees. Proper COGS tracking
enables precise profit calculation.
• Regular Review of Cash Flow:
Accountants for Amazon sellers advise keeping close tabs on cash flow. Monitoring these
inflows and outflows regularly helps assess the financial health of the business, preventing
unforeseen cash shortfalls.
• Prepare for Taxes in Advance:
For effective Amazon bookkeeping, tax planning is vital; set aside funds for GST and income tax
based on sales volume. Frequent checks of tax liabilities avoid surprises at year-end.
• Outsource to the Pros:
Outsourcing Amazon FBA accounting not only brings specialised expertise but also ensures e-
commerce knowledge is applied while you focus on scaling. With insights into cash flow, tax
compliance, and growth strategies, outsourced accounting services providers have
accountants for Amazon sellers to allow business owners to concentrate on expanding their
store.

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» Tips to Hire the Right Accounting CPA for Your Firm
Hiring the right CPA for your firm can make a world of difference. Here are some practical tips to
ensure you find the best fit:
1. Prioritise Experience with Amazon Accounting
Look for CPAs who have hands-on experience in amazon accounting and understand the
unique challenges faced by e-commerce businesses. A CPA knowledgeable in amazon seller
bookkeeping and accounting for amazon sellers will be able to handle complex sales channels,
returns, and tax implications, giving you confidence that your financial records are accurate.
2. Verify Familiarity with Amazon Bookkeeping Software
Ensure the CPA is skilled in accounting software for amazon sellers such as Xero, QuickBooks,
or specialised Amazon tools. This expertise streamlines amazon bookkeeping processes,
enabling the accountant to integrate your data seamlessly, track sales, and monitor inventory
accurately. Familiarity with amazon fba accounting systems also simplifies reporting and tax
preparation.
3. Check Qualifications and Certifications
When hiring amazon accountants, confirm they are licensed CPAs with up-to-date
certifications. A CPA with a specialisation in e-commerce or accounting for amazon sellers
adds credibility, ensuring they are familiar with the latest regulations and best practices in
bookkeeping for amazon sellers.
4. Ask About Tax Planning and Compliance Knowledge
Tax compliance is critical for Amazon businesses, so hire an amazon accountant who
understands tax deductions, sales tax compliance, and reporting requirements. Their
knowledge in amazon fba accounting helps to reduce errors and ensure your business adheres
to all legal obligations, avoiding costly fines.
5. Look for Strong Analytical and Reporting Skills
A CPA with excellent analytical skills can provide insights into your Amazon business
performance, helping you optimise profits. This ability, combined with experience in amazon
bookkeeping, can highlight trends, track expenses, and identify areas for growth through clear
and actionable reporting.
6. Inquire About Inventory Management Expertise
Proper inventory management is crucial for Amazon sellers. Accountants for amazon sellers
with inventory management experience can help track stock levels, prevent overstocking, and
ensure accuracy in amazon seller bookkeeping. Their ability to keep inventory data aligned with
financial records is invaluable.

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7. Evaluate Communication and Responsiveness
Effective communication with your amazon accountant is essential for addressing issues
promptly. Hire someone who is responsive and proactive, as this will enhance bookkeeping for
amazon sellers by allowing quick adjustments to your finances and better financial planning.
8. Look for Adaptability to Scaling Business Needs
Choose an amazon accountant who can adapt as your business grows, offering solutions for
scaling financial operations. This adaptability is especially helpful for firms aiming to expand
their e-commerce footprint, as they can continue using the same accountant without disruption
to amazon seller bookkeeping.
Following these points as ecommerce accounting guide you toward selecting a CPA that aligns
with your Amazon business’s needs and ensures efficient and accurate amazon bookkeeping
for lasting success.
» Conclusion
The challenges associated with Amazon seller bookkeeping are distinct from those faced by
offline businesses. Manual tracking is insufficient, and even computerised systems can quickly
become overwhelming. Given the fast growth of e-commerce, precise bookkeeping is critical to
prevent losses and improve ROI. Amazon seller accounting can be stressful, but new and
seasoned entrepreneurs alike can benefit from hiring reasonably priced accountants to
standardise business practices and save time.
From initial setup to optimising your current processes, this guide ensures that every aspect of
your Amazon business is financially on track. Using Amazon seller bookkeeping software and
specialized accountants keeps finances organized and tax-compliant, essential as you scale
up. Mastering Amazon FBA accounting empowers you to make informed decisions, grow
operations, and maintain profitability in the competitive Amazon marketplace. Explore our
pricing to find tailored solutions that keep your finances streamlined, so you can focus on
growing your Amazon business confidently.

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» FAQs on Accounting and Bookkeeping for Amazon Sellers
1. What Is Amazon Bookkeeping, and Why Is It Important for Sellers?
Amazon bookkeeping is simply the process of recording and managing all types of financial
transactions related to your Amazon business, such as sales, returns, fees, and expenses. Good
Amazon bookkeeping is necessary to maintain accurate financial records and taxes, in addition
to making informed business decisions.
Having the right idea of profit, expenses, and most importantly cash flow, enables sellers to
prepare ahead and quickly grow their business without falling into costly mistakes. Accurately
managed bookkeeping for Amazon sellers will ensure compliance with tax laws and make
managing finances a breeze.
2. How Do I Choose the Best Accounting Software for Amazon Sellers?
Several variables come into play when choosing the right software for your business, such as
the size of your business, transaction volume, and specific needs like inventory management or
multicurrency support. Some well-known accounting software examples are Xero, QuickBooks,
and Zoho Books. These programs include integration with Amazon, making your Amazon seller
bookkeeping automatic by syncing sales data, tracking expenses, and updating inventory. Using
the right software helps sellers save time, avoid costly mistakes, and get a better understanding
of their financial health.
3. What Are the Key Differences Between Amazon FBA Accounting and Traditional
Bookkeeping?

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You cannot approach the accounting of Amazon FBA in the same way as traditional
bookkeeping. FBA sellers pay additional fees (e.g., fulfillment and storage fees), which impact
profit calculations. Amazon FBA is more complex in that Amazon accounting requires tracking
inventory, as items are stored and shipped by various Amazon warehouses. The complexity
arises from a need for an accounting system that can support distinct costs, and different
product sales require careful profit margin tracking. With a solid understanding of Amazon FBA
accounting, sellers can more easily keep costs in check and stay profitable.
4. Can I Do Amazon Bookkeeping Myself, or Should I Hire an Amazon Accountant?
Some smaller sellers may manage their basic Amazon bookkeeping independently, but hiring a
professional Amazon accountant has many benefits. Amazon accountants know the intricacies
of Amazon tax rules and maximise deductions, often where others might fall short. They can
identify areas for improvement, prevent costly errors, and ensure accurate financial records. By
contracting a skilled accountant, sellers can focus on growing their business instead of worrying
about accounting mistakes.
5. What Are Common Bookkeeping Mistakes Amazon Sellers Should Avoid?
Common Amazon seller bookkeeping mistakes include neglecting to track all Amazon fees that
are deducted from payments, inaccurately accounting for inventory, and failing to categorise
expenses. These errors pose risks, as they can distort financial statements and affect taxes.
Avoiding these top bookkeeping mistakes helps Amazon sellers maintain accurate records,
supports tax compliance, and establishes a reliable basis for decision-making and growth.