Skip to content

Our Mission:

We are on a mission to help 1,000 eCommerce sellers get their books done the eCommerce accounting way.

We believe eCommerce businesses deserve better accounting and bookkeeping.

We believe eCommerce businesses need accrual accounting, with proper treatment of Sales, Platform Fees, Cost of Goods Sold, and Inventory.

The Beginning and the Challenges:

Jay started working with eCommerce sellers since 2017, though he also have clients from other industries,

eCommerce businesses have always been his favorite.

Working with Amazon Sellers, Shopify, Walmart, and Etsy sellers, he noticed that their books are usually done in cash basis accounting approach.

👉Amazon deposits or Shopify payouts are categorized as their Sales.

👉The purchases of products recorded as Cost of Goods Sold.

👉No recording of Platform Fees, merchant charges, and other costs.

👉No recording and monitoring of inventory per month or even yearly basis.

👉No recording and monitoring of receivables, and pending balances.

Some tried solving these issues by syncing all sales orders to QuickBooks online using apps that promise real-time sync of information from the different Sales Channels.

Some tried setting up inventory and SKUs inside QuickBooks Online and matching them to the orders being synced.

Trying to handle Inventory Management inside QuickBooks Online.

Until their books are clogged by the huge volume of orders and details…. 

then they gave up using the sync and now their books are in a huge mess.

 

Because of these issues, the books are far from accurate.

Business owners have no visibility of their business performance.

Unable to use the Financial Reports generated from QuickBooks.

Lack of reliable information gave the business owners headaches and lots of stress.

When they try to get a loan, they can’t show that their business is profitable

And when the tax time come, they are not ready to face the tax man!

The Solution:

Working with eCommerce sellers for several years, Jay began to understand the problems and challenges e-Commerce sellers have 

and discover their specific bookkeeping and accounting needs.

There are three fundamental areas that eCommerce businesses need proper accounting for:

🛒 eCommerce Platform Sales, Fees, and Receivables/Pending balances

🛒Cost of Goods Sold

🛒Inventory purchases, Beginning, and Ending Inventory

To solve these challenges eCommerce sellers often have and properly address the eCommerce specific accounting needs,

Jay have developed a Five Step eCommerce Bookkeeping and Accounting Method

The GreenTarget eComAcctg Method

This method has 5 Core Stages:

This method is built upon the Five Most Important Commerce Accounting Principles:
Gross Sales and Fees need to be accounted for - not just the settlement deposit or payout deposits
The sales and fees, receivables and pending balances, need to be reconciled against the bank deposits
Cost of Goods Sold is the Number of units sold multiply by unit cost
Inventory purchases are to be treated as Inventory Asset -  which needs to be reconciled monthly or yearly with the actual inventory on hand
The chart of accounts and the Financial Reports need to be organized specifically for your eCommerce business needs -  so that the reports will now make sense!

So, what do you need to have a proper Amazon/eCommerce bookkeeping and accounting system?

a. A QuickBooks Online Account – the best accounting software

b. A2X account – (Syncs Amazon Sales & Fees, and COGS to QBO)

c. Amazon Seller Central Reports/ Shopify/ Walmart/ Etsy Reports

d. Good records of your inventory purchases and shipping invoices

e. Bank statements, PayPal, and credit card statements

f. Email, Slack, WhatsApp, and Zoom/Google Meet for quick communication

Now that you know what eCommerce Accounting looks like,

would you be interested to get your books organized the eCommerce accounting way?

Tell us below!

YouTube
YouTube
LinkedIn
LinkedIn
Share
Instagram
WhatsApp
FbMessenger