Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
You can consider the ecommerce boom as one of the silver linings of the ongoing global pandemic. As brick-and-mortar stores closed up one by one, ecommerce platforms like Shopify and Amazon have gained more prominence in our lives. You might have been a frequent customer yourself before you became an ecommerce business owner.
Based on the latest statistics and forecasts, the future is indeed bright for ecommerce. You can seize this promising opportunity by setting up your own ecommerce business on Amazon! However, if you have zero experience in starting and maintaining a business, you might need help, particularly in accounting and bookkeeping, the most dreaded tasks for running a business.
Fortunately, accounting software for Amazon sellers is now readily available to help you manage your finances with ease. If you wish to learn more about it, continue reading!
Why Do You Need Bookkeeping Software for Amazon Sellers?
With the fast pace of transactions on Amazon, you might find it near-impossible to keep up. Tracking your revenues and expenses, alongside keeping an eye on your inventory, can be too much when you are fulfilling hundreds of orders every day.
But what if you can automate everything related to your finances?
Accounting automation is only one of the many benefits you can enjoy when you use accounting software for Amazon FBA. If you want to understand what this exactly means, read on!
Basic Accounting
Like any other business, an eCommerce business needs to stay financially sound. As such, you have to keep track of your accounts payables and receivables and maintain a general ledger for all things money-related. If you are busy being a hands-on business owner, you will need help crunching the numbers.
The basic functions of accounting software include ensuring your financial statements are accurate down to a cent. You can expect this bare-minimum feature from any Amazon FBA accounting software. You can delete and forget about the Google Sheet files you had for bookkeeping and let the accounting software take the burden off your shoulders.
Automated Invoicing
A good business owner would not neglect to issue accurate invoices. However, the Amazon marketplace can get so hectic that an Amazon seller might forget to issue invoices or issue inaccurate ones.
Inaccurate invoicing is a big no-no when keeping your books clean and up-to-date. You know how important it is to keep a paper trail of everything that goes in and out of your business, don't you?
Accounting software for Amazon sellers should have impeccable and seamless integration with the Amazon FBA platform to unlock countless possibilities. One example is automated invoicing, which creates all your invoices. So every time you make a sale, you can rely on the accounting software to issue invoices on your behalf.
Sales Tax
Computing for sales tax involves untangling a messy web of applicable tax laws. It can be confusing because you have to account for everything, including the type of item, when you fulfilled the order, and your location and the recipients.
While you still need an Amazon accountant to ensure proper filing of taxes, you can rely on Amazon FBA accounting software to do the necessary prep work.
Accounting software tailored for Amazon sellers maintains an updated database of all sales tax rates. It automatically filters the applicable tax rates and computes them so that you can collect the right amount from your buyers. Plus, it does all the paperwork for you; when tax season comes, you can easily work with your Amazon accountant to file your tax returns.
Amazon Marketplace Fee Management
If you are a new Amazon seller, don't let Amazon fees surprise you. Besides setting aside money for your beginning inventory, you have to consider the fees for selling on Amazon. Depending on your business strategy, you may opt for one of Amazon's two selling plans: individual and professional. And depending on your chosen selling plan, Amazon will still charge you other fees.
Once you finally settle on a selling plan, you can let the Amazon accounting software do the rest for you. It can calculate how much you have to pay on a per-item basis, including the referral fees, fulfillment fees, long-term storage fees, and other applicable fees. You can even forecast how much money you need for such fees based on your small business' performance.
Inventory Tracking
Do you know how many units of each product you have left?
Tracking how many goods move in and out of your small business can be tricky, especially when you also have other business-related tasks. For example, any Amazon FBA seller would find juggling bookkeeping, inventory management, and other responsibilities difficult.
As an Amazon FBA seller, you must maintain your inventory levels in check. In addition, you need to anticipate the spike in demand so that you wouldn't miss out on potential revenue and keep the momentum going.
Accounting software can do this for you while also keeping track of where your items already are. For instance, when your customers ask for an update, you can glance at the dashboard and see where their item is currently at.
Intuit QuickBooks Online: The Best Accounting Software for Amazon Sellers?
So now that you know what accounting software can do for you, the next step involves looking for the best piece of accounting software for Amazon sellers. With so many great options to choose from, you can't afford to lose precious time trying them all.
Fortunately, we did the tedious work for you! This section tackles the good and the bad and the many features of our top pick for Amazon FBA accounting software.
Hailed as an industry leader in accounting software, QuickBooks Online by Intuit remains the accounting software of choice for many small businesses belonging to different fields and industries. In addition, Intuit offers you different plans for your specific needs, making it a flexible offering compared to its rivals.
So what can QuickBooks Online offer Amazon sellers like you? Read more and find out!
Pros
- Offers an impressive set of features perfectly suited for small business owners like you
- Lets you keep detailed records with extensive information through attachments and memos
- Tracks your inventory and computes for job costing so that you know how much you have spent on a project
- Comes with a custom tag function for customizing your reports
- Integrates with any of the hundreds of apps available on its very own marketplace, including third-party apps
Cons
- Offers plans which can be very expensive for small business owners, especially those who have yet to set up shop
- Presents a plethora of features that may not be user-friendly for those who have zero basic accounting knowledge
- Only has a limited backup function when you make irreversible mistakes or suffer bookkeeping disasters
- Supports CSV files but only for the first three fields, leaving the other columns unsupported by the platform
- Offers a one-size-fits-all platform, so it lacks industry-specific features that you might need
Are You an Amazon FBA Seller? Book a Call with Unloop!
Can't wait to take the burden of Amazon bookkeeping off your shoulders? If that's the case, book a call with Unloop right away!
Let Unloop take care of Amazon bookkeeping for you. You won't regret making this important decision because this will free up your hands and let you focus on running your business.
Unloop takes advantage of the best accounting software in the market, including A2X, Intuit QuickBooks, and TaxJar. Once you let Unloop take care of inventory tracking, Amazon settlement, and any other accounting matters of your Amazon FBA business, you can relax and let your business run smoothly and without a single hitch!
If you are excited to get started, call us at 877-421-7270 and begin your Unloop journey!