Before You Start

This guide assumes you have an active Amazon Seller Central account and an inventory management system (optional but recommended) in place. Access to your accounting software (QuickBooks Online or Xero) is also required.

Overview

50 min
Setup Time
Advanced
Difficulty
Daily
Maintenance

What You’ll Learn

  • Setting up your Chart of Accounts for Amazon transactions
  • Accurately tracking Cost of Goods Sold (COGS) for FBA
  • Mapping Amazon fees, refunds, and promotions
  • Reconciling Amazon payouts with bank deposits using third-party tools
  • Integrating with inventory management systems

1. Preparation Steps

Before automating, ensure your accounting software is ready for Amazon’s complexity:

Essential Accounts

  • Amazon Sales (Income)
  • Amazon FBA Fees (Expense)
  • Amazon Payouts (Bank/Asset)
  • Inventory Asset (Other Current Asset)
  • Cost of Goods Sold (COGS) (Cost of Goods Sold)
  • Sales Tax Payable (Liability)

Advanced Tracking Accounts

  • Amazon Refunds & Returns (Expense/Contra-Income)
  • Promotional Discounts (Income Reduction)
  • Inbound Shipping Fees (COGS/Expense)
  • Storage Fees (Expense)

2. Choosing Your Sync Method

Amazon’s complexity often requires specialized solutions.

Method A: Manual Entry / CSV Imports

This method relies on manually entering data or importing CSVs from Seller Central.

Pros:
  • No software costs.
  • Full manual control.
  • Good for low-volume sellers.
Cons:
  • Extremely time-consuming.
  • High risk of errors.
  • Difficult for COGS tracking.
  • Complex reconciliation.

Method B: Third-Party Integrations (A2X, SellerZen, Catching Up)

These are paid apps built specifically for Amazon accounting.

Expert Tip: For any serious Amazon seller, a third-party connector is non-negotiable. Tools like A2X or SellerZen are built specifically to handle Amazon’s payouts, fees, and COGS calculations, saving countless hours and ensuring accuracy.

3. Step-by-Step: Automated Accounting Workflow

An ideal automated setup involves several integrated systems.

{
  "order_id": "AMZ-123456789",
  "seller_sku": "FBA-ITEM-X",
  "quantity": 2,
  "sales_price": 25.99,
  "amazon_fees": {
    "referral_fee": 3.90,
    "fba_fulfillment_fee": 7.74,
    "per_order_fee": 0
  },
  "total_payout_contribution": 34.34
}

4. Integrating Your Chosen Solution

  1. 1

    Connect Amazon Seller Central

    Grant your chosen integration tool (e.g., A2X, SellerZen) API access to your Amazon Seller Central account.

  2. 2

    Connect Accounting Software

    Link your QuickBooks Online or Xero account to the integration tool, providing necessary permissions.

  3. 3

    Map All Amazon Transactions

    Carefully map every Amazon transaction type – sales, FBA fees, advertising, refunds, and COGS – to the correct accounts in your Chart of Accounts.

  4. 4

    Configure COGS Tracking

    Set up the integration to pull inventory cost data, either directly from Seller Central or from an integrated inventory management system, for accurate COGS entries.

Common Error: Inaccurate COGS

Ensuring your Cost of Goods Sold is correctly calculated and applied to each sale is crucial for profitability analysis. Verify your inventory valuation method and mapping.

5. Testing and Reconciliation

Verification Checklist

  • Import a test payout period (e.g., last week’s settlement report)
  • Compare total sales and fees in QBO/Xero with Amazon’s reports
  • Verify COGS entries for accuracy and timing
  • Confirm bank deposit amounts perfectly match your Amazon payouts
  • Check for any unmapped transactions or error messages

Need Help?

Expert Assistance Available

Navigating Amazon’s complex accounting can be challenging. Our specialized team is here to ensure your integration is flawless.

Schedule a Consultation