Did you know there are at least four ways to sync Amazon Seller financial data to QuickBooks?
- Run a manual report from Amazon Seller Central and book journal entries manually
- Use an app that syncs all transaction level data into QuickBooks
- Use an app that summarizes data based on payout dates and posts those to QuickBooks
- Use an app that summarized sales, fees and payouts on daily basis using accrual based accounting and syncs those to QuickBooks
Let’s review each one to better understand why you should or shouldn’t choose one over another.
If you are an Amazon seller, you know how complicated and difficult it is to get the right report from Amazon Seller Central to do your accounting. There are literally hundreds of reports to sort through. Once you download the reports, you may need to do some spreadsheet somersaults to get the data in a usable format.
We recommend using the Payments report. This report can be generated by going to Reports » Payments » Date Range Reports. It shows a nice summary of the sales, expenses, fees, payouts and sales tax, formatted into a usable journal entry. You can see a sample of this report at the end of this article.
Sync All Orders
There are several apps in the Intuit App Store as well as the Amazon Marketplace Appstore that sync data to QuickBooks. Before you connect anything, however, make sure you thoroughly understand what data is being synced.
Almost all of them, with the exception of a few, bring data in from Seller Central at order or transaction level. This means every single order will be imported so quickly that it can clutter up QuickBooks and make a huge mess! Running reports will become slow and unusable. Reconciling sales to payouts will be absolutely impossible.
Not all apps are created equal, they all do things very differently. Most bookkeeping professionals will tell you bringing in large amounts of data at order level is a substantial and unnecessary risk.
Sync Summarized Data on Payouts
A2X is one app in the marketplace that syncs Amazon data in a summarized format. But what does that mean? It summarizes the data for each payout and posts one journal entry into QuickBooks, which will match the deposit in the banking feed. The journal entry records sales, discounts, refunds, sales tax and fees for the period that the payout covers. For many sellers, Amazon pays out every two weeks. So this will cover sales for the two weeks in one journal entry. So far so good.
However, this presents a major problem at month end, when the payout crosses into the next month. The sales for the 2-week period could fall into the following month, when payouts are booked and you will not have clean financials from month to month. To mitigate this problem, A2X will post a separate journal entry retroactively to split the sales, so each month is correctly reflected. While this solves the issue, it delays the month end close until this occurs.
Here’s a blog post about how A2x typically handles Shopify integration to QuickBooks.
Sync Summarized Entry on Daily Basis
To have real time accurate financial information, the best way is to post daily entries with summarized data into QuickBooks. This enables you to run financial statements on any day of the month, giving you real time financial information to manage your business.
Bookkeep’s integration with Amazon posts proper accounting entries to QuickBooks Online on a daily basis. We’re accountants ourselves, so we know what accountants are looking for.
Here are some reasons why our integration works better for accountants:
- Summarized sales data for each day including: sales, discounts, refunds, gift cards, and shipping costs
- Summarized expense data for each day including: FBA fees, fulfillment fees and PPC advertising costs
- Summarized sales taxes. If Amazon pays the sales taxes, the entry would show a debit and credit in the same entry for your information
- Books expected deposits to a “clearing account” or an Amazon holding account
- Record payouts as a reduction to the clearing account and reconciles payout to the respective sales period
- Summarized Cost of Good Sold (COGS) daily and posts to QuickBooks, provided that cost data is in Seller Central
It’s that easy. Complete and accurate accounting that’s automated for Seller Central daily, just for you!
Bookkeep is the ideal accounting solution for Amazon sellers.