Bookkeeping is an essential aspect of running any business, and for Amazon sellers, it can be especially challenging given the platform’s unique requirements and complexities. To help you better understand the bookkeeping process, we’ve put together a list of frequently asked questions.
Q: What type of record-keeping system should I use for my Amazon business?
There are several options available for keeping track of your Amazon business finances, including manual record-keeping, spreadsheets, or bookkeeping software. It is essential to choose a method that is easy for you to use and provides the information you need to make informed business decisions. For most Amazon sellers, a bookkeeping software like Sage 50 or Xero is the best choice as it automates much of the process and provides useful financial reports.
Q: What are some of the expenses that I should track for my Amazon business?
As an Amazon seller, you should keep track of all expenses related to your business, including product costs, shipping expenses, Amazon fees, advertising costs, and any other business-related expenses.
Q: How do I track my Amazon sales?
To track your Amazon sales, you can use Amazon’s reporting tools or export your sales data to a spreadsheet. You can also integrate your Amazon account with Tradebox which will automatically import your sales data and categorise it based on your settings.
Q: How do I calculate my Amazon profit?
To calculate your Amazon profit, subtract your total expenses from your total revenue. This calculation will give you an accurate picture of how much money you are making on the platform.
Q: How do I keep track of my Amazon inventory?
To keep track of your Amazon inventory, you should regularly reconcile your physical inventory with your Amazon inventory records. This process will help you identify any discrepancies and ensure that your records are accurate. Tradebox constantly uploads amended stock levels to your sales channels, either directly from Tradebox or from your integrated accounts package, reducing the possibility of overselling.
Q: What reports do I need to prepare for my Amazon business?
The specific reports you need to prepare for your Amazon business will depend on your specific needs, but some of the most common reports include profit and loss statements, balance sheets, and cash flow statements.
Choose a System That Works for you
Bookkeeping is a critical aspect of running a successful Amazon business. By understanding the basics of bookkeeping and using the right tools, you can ensure that your business is well organised and financially healthy. Whether you choose to use manual record-keeping, spreadsheets, or bookkeeping software, the key is to choose a system that works best for your business and provides the information you need to make informed decisions.
Arrange a callback with our expert team to discuss your options.