Amazon is the largest e-commerce marketplace in the world. It leases space to online sellers to sell their goods and services. This is specifically beneficial for organizations that do not have much online presence, and Amazon allows them to grow their customer base by selling their products and services to the world.
It’s all excellent and exciting until this, but the real game starts after you start making sales and receiving orders. Is it worth the time, effort, and capability put in? Are you making profits? These are some of the questions you’ll need answers to. That is where bookkeeping for Amazon sellers comes in.
It’s not enough to keep track of how much money is coming in through sales. You also need to keep track of account payables, inventory, how fast you are selling them, etc. Not to mention, you can’t forget tax liabilities as you ship to different states. All these can be daunting, especially if you’re a novice.
You need an experienced e-commerce accountant to help you with your Amazon business’s accounting and bookkeeping needs. If you haven’t considered Amazon bookkeeping service for your business yet, here are some reasons to do so now.
Cash Flow and Income Tracking
Of course, if you’re selling on Amazon, there’s nothing more you want to see than the sales happening and the money coming in. But there’s more to your business success than just that.
You don’t just have to worry about money coming in and the expenses involved in shipping, payments due to suppliers, how much inventory you are selling, how many do you have in stock, how fast you are selling them, and how soon do you need to replenish them. Your Amazon bookkeeping accountant will do all of that and more, so you can focus all your attention on expanding brand awareness and increasing sales.
Inventory and Expense Tracking
There’s more selling on Amazon than receiving the payment and shipping the goods. There are expenses involved like amazon fees if you’re an FBA seller, storage fees, shipping charges, returns, etc. The bookkeeping service keeps track of operating expenses and the cost of goods sold, so you know if it is worth the money and effort you put in.
Although Amazon provides sellers with a platform to track inventory and returns with the entire financial breakdown, it can get quite overwhelming if you’re new to the game. That’s why it is best to leave it to the experts.
Tax Preparation
Outsourcing the bookkeeping for amazon sellers ensures that your books match Amazon’s reports entirely to the IRS with all possible deductions, expense write-offs, etc. Thus, you will pay the minimum in terms of taxes. Also, check if all reports are comprehensive and made ready for months ahead, so you have ample time to prepare to file your taxes.
Knowledge of Software and Tools
The Amazon business is entirely cloud-based, making sense to use online tools and software for accounting and bookkeeping needs. E-commerce accountants are familiar with the best accounting software and tools to automate processes to speed up things and reduce manual errors.
Whether you’re an amateur waiting to see your Amazon business take off or a seasoned seller, it makes sense and is completely worth investing in professional amazon booking services. You need to see if the sales are worth the effort, money, and time is put. So, invest in reliable bookkeeping services, get your books in order, and ensure that your Amazon business is around for years to come. After all, you are in it to make money.