Amazon FBA sellers: Get Your Back Office Sorted -written by A2X Accounting
How the right tech can set your business up for growth
The old saying goes something like: ‘tidy home, tidy life’. The same can be said for business. It makes sense – regardless of whether you’re an online retailers or brick-and-mortar store, when you have tidy back offices with the right systems in place to manage growth, you’ll be far better equipped to scale your business.
The good news is you’re almost there. You’ve sorted your accounting by investing in a dedicated piece of cloud-based accounting software, like Xero or Quickbooks. And you’ve integrated A2X so you now have useable sales data and reporting, so you can accurately forecast and make better, more informed decisions. As an Amazon FBA seller, the next thing you need to think about is sales tax software.
If A2X is the icing on your Xero/Quickbooks cake, we recommend adding Sales Tax and More as the cherry on top. Sales tax is a fact of life for any business, but for Amazon FBA merchants, it’s even more complex. As an e-commerce retailer in the United States where there are multiple sales tax authorities, it’s your responsibility to charge buyers and pass on correct sales tax. Sales tax is primarily determined by something called ‘nexus’ – in other words, a connection to the state. For Amazon FBA sellers, this may look like Amazon having a fulfillment centre in the state where your product has been purchased.
Harness the triple threat
Automation and great service is the key to reducing stress around business finances, and keeping good records will help you better grow your business. When used separately, A2X, Xero/Quickbooks and STM are great tools, but combining all three is when their potential really shines. Together, they’ll help you grow your e-commerce business with data you can rely on.
It’s the ideal back-office set-up for any e-commerce seller looking to take their business to the next level. A2X updates your accounting software with useable data from Amazon.
Work with an e-commerce accountant
While there are lots of accountants who are familiar with Xero and Quickbooks, not as many are equipped with the skills and knowledge to work with Amazon FBA sellers. There’s huge benefit in using an e-commerce specialist accountant like one of the A2X partners. They’re highly experienced in e-commerce accounting, and understand the complexities involved with selling through Amazon FBA.
Still unsure whether you need new accounting software?
Excel spreadsheets have a time and place – they’re almost a rite of passage to becoming a business owner. But ask any Amazon FBA seller (or accountant) and they’ll tell you investing in a robust and accurate piece of cloud-based accounting software as soon as you can will change your business for the better.
Xero and Quickbooks are both online accounting software designed to make managing the financial health of your business easier.
The level of detail supplied by Amazon on a monthly basis, for most business owners, is complicated and overwhelming, and requires huge time investment (how do you think that data gets into Xero/Quickbooks?). A2X automatically imports a summary of your latest transactions from Amazon, creating useable data to help you better manage and understand your business. You’ll have clearer visibility of your revenue and expenses, which is what will allow you to predict when you can expect future growth.
Ready to get your back office sorted? Get in touch with one of our A2X partners.