When running an Amazon business, bookkeeping isn’t always the first thing on your mind. But accurate financial records are crucial to scaling your business, maximizing profits, and staying compliant with tax regulations. Many sellers overlook key bookkeeping practices, leading to costly mistakes.
At Ledger to Launch, we specialize in bookkeeping, financial forecasting, and consulting for Amazon sellers. Here are the most common bookkeeping mistakes we see—and how to fix them.
Using a personal bank account for your Amazon business might seem convenient, but it complicates bookkeeping and tax reporting. It makes it harder to track cash flow, expenses, and profits accurately.
Fix: Open a separate business bank account and use a dedicated credit card for all Amazon-related transactions. This will simplify record-keeping and help during tax season.
Amazon charges various fees—FBA fees, referral fees, storage fees, and advertising costs. Many sellers fail to account for these expenses, leading to inaccurate financial projections.
Fix: Use detailed accounting software or an Amazon-focused bookkeeping service to track all fees and expenses properly. This ensures accurate profit calculations and prevents unexpected losses.
Inventory is one of the largest expenses for Amazon sellers, and failing to track costs correctly can lead to overestimating or underestimating profits. Many sellers only focus on the purchase price, forgetting storage, shipping, and customs fees.
Fix: Implement inventory tracking software that integrates with your bookkeeping system to record inventory costs accurately.
Amazon pays sellers every two weeks, but expenses—like restocking, advertising, and operational costs—happen continuously. Poor cash flow management can leave sellers struggling to reinvest in their business.
Fix: Forecast cash flow using historical data and plan for upcoming expenses. A financial forecasting service like ours can help you maintain a steady cash flow and avoid liquidity issues.
Misclassifying expenses can result in inaccurate reports, tax filing errors, and missed deductions. Many sellers don’t realize that software subscriptions, marketing costs, and office supplies are deductible business expenses.
Fix: Use a proper chart of accounts tailored for e-commerce. This ensures every expense is categorized correctly, making tax time easier.
Scrambling to organize financial records during tax season can lead to errors, missed deductions, and unnecessary stress.
Fix: Maintain monthly bookkeeping to stay on top of financials year-round. If bookkeeping isn’t your strength, consider outsourcing to a professional Amazon bookkeeping service like Ledger to Launch.
Sales tax laws for e-commerce businesses vary by state, and failing to comply can result in penalties. Many sellers assume Amazon collects and remits all sales tax, but that’s not always the case.
Fix: Use sales tax automation tools like Quickbooks or Avalara, and consult a tax professional to ensure compliance.
At Ledger to Launch, we specialize in bookkeeping, financial forecasting, and consulting for Amazon sellers. Our services help you:
✔ Keep accurate financial records
✔ Track Amazon fees and hidden costs
✔ Improve cash flow management
✔ Prepare for tax season with ease
🔹 Want to scale your Amazon business without the financial headaches? Let us handle your books while you focus on growth.
📅 Book a free consultation today!
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