With the ecommerce landscape constantly shifting and new financial regulations coming up, staying on top of your bookkeeping can feel like trying to nail jelly to a tree. Painful and frustrating.

And let’s be honest, the IRS is never going to understand or cut you some slack, even when things get complicated.

In today’s blog, we’re diving into the top bookkeeping services that will simplify your financial management and keep your books in order.�

If you prefer a more hands-on approach, we’ve also included some straightforward tips and steps to help you manage the basics of bookkeeping effectively.

And if at any point you are feeling overwhelmed by these bookkeeping worries, feel free to book a demo with our experts. They are here to walk you through all the tough stuff and intricate bookkeeping details.

For now, let’s explore what’s in store for you in the bookkeeping world.

Why Bookkeeping Matters for Amazon Sellers

For Amazon sellers, bookkeeping is more than just a regulatory requirement — it’s a day-to-day affair that can drive growth, enhance profitability, and ensure long-term success.�

Here’s why bookkeeping matters:

• Understanding Product Profitability: Top bookkeeping services let you see which items are actually paying the bills so you can double down on what works and ditch what doesn’t.

• Keeping Taxes in Check: By diligently recording all your expenses throughout the year, you’ll have all the documentation you need to legally reduce your tax bill. Plus, accurate records reduce the risk of audits or penalties.

• Avoiding Cash Flow Surprises: Proper bookkeeping helps you monitor exactly where your money is going each month. By tracking all your expenses, you’ll know how much cash you have available at any given time.

• Being Ready for Growth: If you’ve kept up with your bookkeeping, you can quickly provide profit and loss statements, balance sheets, and cash flow reports. These documents showcase your business’s profitability and financial stability.

Biggest Bookkeeping Challenges for Amazon Sellers

We know the hustle you’re putting in every day — the late nights, the constant checking of sales, and that ever-growing product list. We also know that bookkeeping can be overwhelming.

Let’s talk about the biggest bookkeeping challenges you’re probably facing and how they impact your business:

1. Decoding Amazon’s Fees and Charges

Amazon’s fee structure can feel like a rabbit hole. Between referral fees, FBA fees, storage fees, and the occasional surprise charge, keeping track of your money is no small feat.

What Can You Do?

Automate Tracking: Use accounting software that syncs with Amazon to keep tabs on all fees.

Regular Reviews: Set a weekly date with your finances to review and understand all charges.

2. Managing Inventory and COGS

Keeping track of how much stock you have and how much it costs sounds simple — until you’re juggling dozens of products and suppliers.

In addition, inaccurate inventory and COGS calculations can lead to overstocking or stockouts, affecting sales and cash flow.

What Can You Do?

Inventory Management Systems: Invest in a good inventory management tool that syncs with your sales.

Regular Audits: Conduct periodic inventory audits to reconcile physical stock with your records.

3. Handling Sales Tax Compliance

Sales tax — different states, different rules, and constant changes make it even more complicated.

And, non-compliance can result in penalties and interest charges, not to mention the stress of dealing with tax authorities.

What You Can Do?

Automate Sales Tax: Use tools like TaxJar or Avalara to handle calculations and filings.

Stay Informed: Hire a tax consultant who can keep an eye on tax law changes, especially in states where you have a significant customer base.

4. Recording Returns and Refunds

Returns are part of the ecommerce world, but they can wreak havoc on your books if not recorded properly.

What Can You Do?

Establish Clear Processes: Have a system in place for recording returns and refunds promptly.

Monitor Patterns: Keep an eye on return rates to address any underlying product issues.

5. Reconciling Payouts with Sales

The amount Amazon deposits into your account doesn’t always match your total sales due to timing and fees.

What Can You Do?

Regular Reconciliation: Open a separate business bank account and match its statements with Amazon reports regularly.

Detailed Records: Maintain detailed records of all transactions to trace any discrepancies.

5. Dealing with Multi-Currency Transactions

When you’re selling internationally on Amazon, you’re dealing with customers who pay in different currencies. This introduces complexities like fluctuating exchange rates and conversion fees, which can affect your profits.

What You Can Do?

Use Multi-Currency Accounts:Set up business bank accounts that can hold multiple currencies (like USD, EUR, GBP, etc.) and  allow you to receive payments in the same currency your customers pay with.

Monitor Exchange Rates and Hedge Against Currency Risks:Keep an eye on how currency values fluctuate over time. Consider financial strategies to protect yourself from adverse movements in exchange rates.�

Financial products like forward contracts allow you to set a specific exchange rate for a future date. This means you can lock in a rate now, protecting yourself if the currency moves against you later.

6.  Understanding Amazon’s Financial Reports

Amazon provides sellers with a plethora of data through various reports, each packed with vital information about your sales, fees, inventory, and customer behavior.

We are talking about numerous reports like Payments, Business Reports, Inventory Reports, etc., each serving different purposes.

However, the sheer volume and complexity of these reports can make them challenging to interpret.

Plus, financial jargon and Amazon-specific terms can be confusing if you’re not familiar with them.

What You Can Do?

Consult an Ecommerce Bookkeeping Professional: Hire experts who specialize in ecommerce bookkeeping. They can help you interpret complex reports as well as maintain accurate records.

Forums and Groups: Participate in Amazon Seller Forums, Facebook groups, or LinkedIn communities where you can ask questions and share experiences.

What to Look for in a Bookkeeping Service for Amazon Sellers

So you’re thinking about getting some professional help with your bookkeeping — excellent move!

But with so many options out there, how do you find the one that’s just right for your Amazon business?

Here’s what you need to look for in a bookkeeping service tailored to your online business:

👉 A Service That Truly Understands Amazon

You need a bookkeeping service that gets the Amazon game — the fees, the reports, the FBA logistics, all of it.

They should know the quirks that come with selling on Amazon because it’s not just any marketplace. It’s a hub that brings profit but only if your eyes and ears are open.

👉 Seamless Sync with Your Seller Account

Look for a bookkeeping team that can effortlessly connect with your Amazon Seller Central account. This means less manual data entry for you and up-to-date numbers without the hassle.

👉 Ecommerce Accounting Expertise

You want folks who are pros with ecommerce platforms and bookkeeping software like QuickBooks, doola Bookkeeping, Xero, or specialized Amazon accounting software.

They’ll know how to handle inventory management and COGS like it’s second nature.

👉 Inventory Management Skills

Inventory can be a beast if not tamed with the best bookkeeping practices.

A good bookkeeping service will help you keep tabs on stock levels, prevent overstocking or stockouts, and accurately calculate your costs.

👉 Sales Tax Know-How

Make sure your bookkeeping service stays on top of sales tax compliance so you don’t have to worry about unexpected bills.

👉 Multi-Currency Transactions

If you’re selling globally, currency conversions can mess with your profits.

Find a service that can manage multiple currencies smoothly, so exchange rates don’t eat into your margins.

👉 Custom Reports That Matter

Generic financial statements are okay, but wouldn’t you rather have reports that give you insights into what’s actually driving your business? Look for a service that tailors reports to highlight your key metrics.

👉 Transparent Pricing

No one likes hidden fees. Choose a bookkeeping service that lays out their pricing clearly, so you know exactly what you’re paying for.

👉 Scales with Your Business

Your business today isn’t where it’ll be tomorrow. Pick a service that can grow with you, adapting to your evolving needs.

👉 Strong Data Security

We don’t have to mention this; it’s obvious. Your financial data is personal and sensitive. Ensure they have robust security measures to keep your information safe.

👉 Positive Feedback from Other Sellers

Check out reviews or testimonials from fellow Amazon sellers. Their experiences can give you a real sense of what to expect.

👉 Offers Valuable Insights

Beyond just number-crunching, a good bookkeeping service will provide advice to help you boost profitability and streamline operations.

Top Bookkeeping Services for Amazon Sellers

Here are the top bookkeeping services tailored to meet the unique needs of Amazon businesses and sellers.

1. doola Bookkeeping

If you are seeking a bookkeeping service that is equally dedicated to the success of your ecommerce business, doola Bookkeeping is the ideal partner for you.

Key Features:

• Dedicated In-House CPAs and Bookkeepers: Personalized support from certified professionals without outsourcing.

• Business-in-a-Box™ Solution: Comprehensive services including company formation, EIN acquisition, and bank account setup.

• Advanced Bookkeeping Tools: User-friendly DIY software, efficient invoice generation, and payment processing.

• Real-Time Financial Insights: Interactive dashboards and on-demand financial statements.

• Dedicated Tax Filing Services: Expert tax preparation and proactive compliance management.

Free Trial:�

Offers a 30-day free trial for the basic bookkeeping software

Pricing:

Plans start at $25 per month. Flexible pricing tiers to match your business size and needs. Sign up for a quick demo.

2. QuickBooks Online

QuickBooks Online is a seasoned veteran in the accounting arena used by ecommerce businesses of all sizes.�

Key Features:

• Comprehensive Accounting Tools: Invoicing, expense tracking, and inventory management tailored for ecommerce.

• Integrations: Seamlessly integrates with Amazon and other marketplaces for automatic data synchronization.

• Real-Time Reporting: Detailed financial reports and customizable dashboards.

• Mobile App: Manage finances on the go with robust mobile functionality.

Free Trial:

Offers a 30-day free trial to explore its robust features.

Pricing:

Ranges from $25/month (Simple Start) to $180/month (Advanced), depending on the features and number of users.

3. Xero

Xero is a cloud-based accounting software known for its ease of use and powerful features, making it a popular choice among Amazon sellers seeking comprehensive financial management.

Key Features:

• Cloud-Based Accounting: Access your books from anywhere with robust cloud functionality.

• Inventory Management: Track inventory levels, manage stock, and automate reordering processes.

• Bank Reconciliation: Automatically reconcile bank transactions with ease.

• Multi-Currency Support: Handle transactions in multiple currencies, ideal for international sellers.

Free Trial:

30-day free trial available, providing full access to all features.

Pricing:

Plans start at $13/month (Early) to $70/month (Established), catering to different business needs.

4. Bench

Bench provides professional bookkeeping services with a focus on simplicity and accuracy, making it an excellent choice for Amazon sellers who prefer a hands-off approach to financial management.

Key Features:

• Dedicated Bookkeepers: Just like doola, each client gets assigned a team of professional bookkeepers for personalized service.

• Monthly Financial Statements: Receive clear and detailed financial statements every month.

• Expense Tracking: Automated expense categorization and tracking.

• Tax-Ready Reports: Financial reports prepared for easy tax filing.

Free Trial:

No Free Trial: Bench does not offer a free trial but provides a free consultation to assess your bookkeeping needs.

Pricing:

Starts at $299/month for the Basic plan, which includes essential bookkeeping services.

5. Wave Accounting

Wave Accounting is a free, user-friendly accounting software ideal for small Amazon sellers and startups looking to manage their finances without significant upfront costs.

Key Features:

• Free Accounting Software: Comprehensive bookkeeping tools available at no cost.

• Invoicing and Receipt Scanning: Create and send professional invoices and scan receipts for easy expense tracking.

• Bank Connections: Link bank accounts for automatic transaction imports and categorization.

• Financial Reporting: Generate essential financial reports to monitor business performance.

Free Trial:

Core bookkeeping features are free, with optional paid add-ons like payroll and payment processing.

Pricing:

Core bookkeeping features are free. Pro plan starts at $16/month

6. Bookkeeper360

Bookkeeper360 offers integrated bookkeeping and advisory services, providing Amazon sellers with both financial management and strategic business advice.

Key Features:

• Integrated Bookkeeping and Advisory Services: Combines bookkeeping with strategic financial advice.

• Cloud-Based Platform: Access your financial data from anywhere with secure cloud technology.

• Customizable Dashboards: Tailor dashboards to display the finance related metrics that matter most to your business.

• Tax Compliance: Assistance with tax preparation and compliance to ensure adherence to regulations.

Free Trial:

Bookkeeper360 offers a complimentary consultation to discuss your business needs and demonstrate their services.

Pricing:

Plans are tailored based on business size and specific needs, typically starting around $399/month.

A Guide to Bookkeeping for Amazon Sellers: Getting Started

If you’re just getting started with bookkeeping for your Amazon store, here are the steps you’ll need to take.

Step 1: Get Yourself the Right Accounting Software

First things first, you need an accounting software without any complexities.

It should be easy to use,  offers finance reports on demand, and keeps a check on your inventory management. For ecommerce accounting, you’ll need a system that uses double-entry accounting.

Now, you might be thinking, “Why double-entry?”�

Well, single-entry accounting includes noting down all of your business’s transactions (including revenues, expenses, payroll, and more) in a single ledger.�

It’s quick and easy, but single-entry doesn’t track assets or liabilities, is prone to errors, and doesn’t inform you much about the health of your business. It’s not ideal for ecommerce businesses that carry inventory, either.

Whereas, double-entry accounting helps you see the full picture with income statements, balance sheets, and cash flow statements and keep track of the overall health of your Amazon business.

Step 2: Customize with the Best Add-Ons

Your accounting software doesn’t have to do all the heavy lifting alone.

There are some fantastic software add-ons and automations out there designed specifically for Amazon sellers like you. These tiny add-ons can make the overall process of bookkeeping even more effective and easier.�

And let’s not forget about sales tax. Since you’re potentially selling across multiple states or even countries, tools like TaxJar can automate the tracking and filing of sales taxes, turning a potential headache into a breeze.

Step 3: Build Your Chart of Accounts

Now it’s time to set up your Chart of Accounts— the backbone of your bookkeeping system. This step is crucial because it organizes all your financial transactions into categories that make sense for your business.

Start by setting up the main categories:

• Assets (what your business owns)

• Liabilities (what your business owes)

• Equity (your investment in the business)

• Revenue (money earned from sales)

• Expenses (costs incurred to run the business).

Then, customize these categories to fit your Amazon business by adding specific sub-accounts.

For example, under Revenue, you might include “Amazon Sales Revenue” and “Other Sales Channels” if you sell on different platforms.�

Under Expenses, break it down into more detailed categories like Cost of Goods Sold (COGS)— which covers product costs, shipping to Amazon warehouses, customs, and duties — and Amazon Fees, such as referral fees, FBA fees, and storage fees.

Don’t forget Operating Expenses like shipping supplies, advertising costs, software subscriptions, and yes, even that premium coffee subscription fueling your late-night hustle.

By tailoring your Chart of Accounts to your specific needs, you gain clear insights into your income and expenses.�

This clarity not only helps you monitor the financial health of your Amazon business but also makes tax time less stressful by keeping deductible expenses neatly organized.

Step 4: Get Ready to Tackle and Track Cost of Goods Sold (COGS)

COGS isn’t just accounting jargon — it’s the heart of understanding your true profits.

It includes every cost associated with getting your products into customers’ hands: purchase price, shipping, fees, tariffs, you name it.

Here’s how you can calculate COGS:�

✅ Start with the value of your inventory at the beginning of the period.�

✅ Add all the costs you’ve incurred to acquire or produce new products during that time — this includes purchase prices, shipping fees, tariffs, and any direct expenses.�

✅ Then subtract the value of your ending inventory — the cost of the products you still have on hand at the end of the period.�

The formula is:COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.�

This calculation gives you the total cost associated with the goods you’ve sold, helping you see exactly how much you’re spending to generate your sales and understand your actual profit.

Step 5: Dive into Recording Your Entries

Now that your system is set up, it’s time to get down to business.

Make it a habit to regularly log every financial transaction.

Consider scheduling a specific time for bookkeeping — maybe an hour every week to keep yourself on track.�

Remember, staying organized is the key to a smooth and hassle-free bookkeeping process each month.

Step 6: Choose the Best Way to Store Your Financial Records

When tax time comes around, you’ll need to back up your expense claims with proper documentation.

That’s why figuring out a reliable storage system for all your financial records is very important in ecommerce bookkeeping.

Make use of cloud-based storage solutions like Dropbox, Evernote, Google Drive, or specialized bookkeeping platforms. These tools keep your documents organized, secure, and accessible whenever you need them.

Additionally, consider using apps that let you snap photos of your receipts and automatically upload them to your chosen storage.

This way, you’re keeping track of expenses in real-time, and everything stays neatly filed without the hassle of physical paperwork.

Step 7: Know When to Bring In the Pros

As your business grows, you’ll find that time becomes your most precious commodity.�

If bookkeeping starts eating into the hours you could spend expanding your product line or engaging with customers, it might be time to outsource and hire a bookkeeping advisor.

You have two options here. You can hire a bookkeeping service or accountant or bring in a CPA for more complex needs.�

But, remember, while CPAs come with more expertise, they also come with a higher price tag. Choose the level of help that fits your business’s current stage.

And in case you didn’t know, bookkeeping services are tax-deductible. It’s like getting a discount on freeing up your own time. Sweet, isn’t it?

Specific Bookkeeping Considerations for Amazon Business Owners

Running an online store isn’t quite the same as managing a physical shop — it can be a bit more complicated.�

If you’re selling on Amazon, there are some tiny bookkeeping considerations you’ll need to keep in mind.

Ensure Your Accounting Method Aligns with Your Business Needs

Understanding Cash Basis Accounting

Many small business owners opt for cash basis accounting because of its simplicity. However, this method might not be ideal for Amazon FBA sellers.�

Cash basis accounting records income and expenses only when cash is actually received or paid out. This approach can create challenges for businesses that maintain inventory.

For Amazon FBA businesses, cash basis accounting can distort the financial reality. Since Amazon disburses payments biweekly, certain months may show inflated profits that don’t accurately represent the sales performance of that period.�

Conversely, months with substantial cash expenditures for inventory replenishment can make the business appear less profitable than it truly is.

Most importantly, if you decide to sell your Amazon business in the future, you’ll need to present a clear and complete view of its financial health. Using cash basis accounting makes it harder to demonstrate consistent profitability because monthly financial results can vary significantly.

Exploring Alternative Accounting Methods

Given these potential issues, Amazon FBA sellers might benefit from considering other accounting methods, such as accrual accounting.�

Accrual accounting records revenues and expenses when they are earned or incurred, regardless of when the cash transaction happens.�

This method offers a more accurate representation of your business’s financial health and can make your business more appealing to prospective buyers.

Understand the Costs of International Sales

As an Amazon FBA seller, it’s crucial to recognize the additional costs that come with selling internationally. These can include extra duties, fees, and the impact of currency exchange rates.

Make sure to factor these costs into your pricing strategy.�

And, if you’re selling on multiple Amazon marketplaces, such as the United States and the United Kingdom, you’ll need to manage your accounting separately for each region.

Keep distinct records of income and expenses for each Amazon channel. This helps in accurately assessing the performance of each market.

You should alsoconsider working with a bookkeeper who has experience with international ecommerce to ensure your finances are accurately managed.

How doola Bookkeeping Can Help You Stay Organized and Profitable

doola Bookkeeping stands out by combining expert in-house professionals with robust tools and comprehensive services tailored for global entrepreneurs and small businesses.�

Whether you’re establishing a new U.S.-based business or managing an existing one across multiple channels, doola Bookkeeping provides the support and resources you need to maintain accurate financial records, ensure compliance, and achieve long-term success.�

Here’s what sets us apart:

1. Dedicated Bookkeeping Experts

In-House CPAs and Bookkeepers: Unlike many services that outsource, doola employs a team of dedicated Certified Public Accountants (CPAs) and bookkeepers to ensure personalized and reliable financial management.

Single Point of Contact: Enjoy seamless communication with a trusted professional who understands your business inside and out.

2. Comprehensive Financial Management

All-in-One Accounting Package: From initial setup to ongoing financial maintenance, doola handles everything, allowing you to focus on growing your business.

Catch-Up Bookkeeping: Get your books up to date quickly with expert assistance, ensuring accurate financial records from day one.

3. Advanced Bookkeeping Tools

DIY Bookkeeping Software: Empower yourself with user-friendly software that complements professional services, giving you control and flexibility.

Efficient Invoice Generation & Payment Processing: Streamline your billing processes with tools designed to save you time and reduce errors.

4. Transparent and Competitive Pricing

Clear Pricing Plans: doola offers straightforward pricing with no hidden fees, allowing you to understand exactly what you’re paying for.

Customizable Packages: Choose from a variety of pricing plans tailored to fit your specific business needs and budget, ensuring you only pay for what you need.

Flexible and Scalable Solutions: Whether you’re just starting out or scaling your business, doola’s services adapt to support your growth without unexpected costs.

5. User-Centric Support

Reliable Financial Reporting: Receive accurate and timely financial reports that help you track performance and make strategic decisions.

Real Human Support: Access knowledgeable support teams who are ready to assist you with any bookkeeping or tax-related questions.

6. Secure and Compliant Data Handling

Data Security: doola prioritizes the security of your financial information with robust data protection measures.

Compliance Expertise: Stay ahead of regulatory changes with doola’s expertise in U.S. tax laws and business regulations, tailored for global entrepreneurs.

Ready to Simplify Your Books With doola Bookkeeping?

Experience the doola difference for yourself.

Schedule a free demo today and see how our dedicated bookkeeping services can simplify your finances and empower your business growth