Amazon has changed the retail face in different markets worldwide over the last two decades. At the same time, accounting industries underwent loads of disruption. As a result, you have new cloud-based software that helps remove manual backing of your finances and has opened many doors for improvement.
So, how do you automate your Amazon accounting? We are here to help because when you get your Amazon accounting right, it helps to free up time to focus on the bigger picture. Still, before you choose any powerful accounting tools, it all depends on the size of your business.
Cloud Accounting Systems for Amazon
The days of using desktop-based accounting software are outdated, and the new kid on the block is cloud operations. You can find QuickBooks Online or Xero with indispensable tools allowing you to run your Amazon business from anywhere. You need not do manual backups; all your essential financial data is securely stored and managed. These cloud accounting systems merge into different platforms to marketplaces to record and collect your information.
Combing Cloud With a Revenue Recognition System
You can then combine your cloud accounting system with A2X, a revenue recognition tool to accurately process your Amazon transactions to make it easier. As Amazon pays sellers a fortnight, you receive sales revenue with fewer fees, refunds, and returns.
These amounts you record as revenue but can bring different issues as your Amazon business grows. For example, you can have lower amounts recorded, and Amazon changes its fee structure often. The revenue recognition software removes those issues to record data correctly.
Add Sales Tax Software
Keeping on top of sales tax obligations can be complex as the USA has 46 states, each applying its laws related to sales tax. For this reason, it helps to use automated sales tax software like Taxify or TaxJar to simplify the process.
Implement a Proper Analytic Software
As your business grows, it helps to invest in proper analytic software, especially with an Amazon FBA business, as you need to make decisions regularly. For this reason, it helps to use a system like Hello Profit as an example to incorporate your data and helps to understand all the key differences to focus on using the correct tools to get tasks done.
Other Options
The above are great ways to automate Amazon accounting, but you can always work with a specialist accountant if you have the money to spare. The accountant will look at the key metrics of your business and provide you with the best advice and guidance. Or you can hire a freelancer specializing in Amazon accounting as it is more beneficial to lower costs in investing in special accounting software. Contact us to learn more.
