Amazon Accounting Tips 

 April 25, 2022

Why is Amazon Accounting Important?

As with any business, accounting is a task that is critical to the success of your business. Regular accounting tasks keep you on top of your business’s financials to make the best decisions necessary for its growth and profitability. It’s no different with your Amazon store.

Like any e-commerce business, accounting for your Amazon store should involve monitoring sales, expenses, income tax compliance, and more. It can be an intimidating challenge if you’re a new business owner, new to Amazon, or simply aren’t good with numbers. Here are some tips to help you simplify the management of your accounting tasks.

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1.   Invest in Amazon Accounting Software

The first thing you need to do is find yourself some Amazon accounting software. The right program will be able to simplify or automate all the other tasks on your accounting “To Do” list. This will free up a significant amount of your time and make the once dreaded accounting seem like a breeze.

Some questions to keep in mind when you are investigating accounting software are:

  • Does it integrate with Amazon?
  • Can you access in-depth reporting?
  • Can it simplify your income tax claim?
  • Does it come with 24/7 customer support?

2.   Know The Accounting Basics

Some business owners are intimated by accounting, thinking that you need a degree to effectively manage your business finances when that simply isn’t true. All you need is a basic understanding of some key elements:

  • Sales
  • Profits
  • Losses
  • Expenses
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As your knowledge and confidence in your accounting skills grow, so will your business. Find an accounting program that will do this for you automatically to make it easier to manage.

3.   Comply With Income Tax Obligations

Income tax compliance is crucial for any business. It can be a little bit more complex with an e-commerce business like your Amazon store. Many accounting programs can collect tax info and complete and file your tax return. However, if your company operates in numerous countries, it’s important to find software that can assist with those parts of your business too. Each country you sell goods and services in has its own tax regulations that you need to comply with. You’ll need a program that can consider that.

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4.   Account For Expenses

It has never been easier to track your business expenses. Most transactions these days have a digital record. Also, accounting programs typically come with automation software. Accounts payable automation allows you to monitor spending and pay bills with the click of a button. This will help you stay on top of your expenses and aid in the forecasting process.

5.   Complete Monthly Forecasting

Forecasting is a beneficial tool that can help you make sound decisions for your Amazon Store. Forecasting involves analyzing the previous month’s sales, expenses, profits, and losses to project your business trends for the coming months. This will help you understand how much inventory you will need, your budget, and where you should invest any marketing dollars. This is another function that you can find with most accounting software.

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