If you're in the ecommerce business or are just getting started, then you know that accounting can be pretty difficult and time-consuming. But you know what else sucks? Getting audited and realizing that you weren't prepared.
Why Proper Bookkeeping as an Amazon Seller Matters
The success of an e-commerce business can rely heavily on its bookkeeping practices.
One such reason is that you want to be ready if you get audited. When it comes to getting a visit from the IRS, don't assume that your business will be the exception. If you read some of the stories of Amazon Sellers from Seller Central, you can clearly see that it's a guessing game as to who or why gets audited.
Proper bookkeeping can also mean you take advantage of legal incentives and in general have a good grasp of how your business is doing.
Yet, proper bookkeeping is a never-ending task for most. There’s always something to keep track of, and sometimes it can be overwhelming to know where to start. For e-commerce sellers, that pressure is heightened by the need to keep track of multiple channels: website, online marketplaces, Amazon, eBay, and Etsy. The more tasks you have on your plate, the more difficult it becomes to keep everything organized.
Along with Bookkeeping, other difficulties may include:
- Amazon Fees: Fees are the cost of running your business - see this explanation by Amazon of what those various types of fees are. Amazon sellers are facing an increasing number of fees, which are making it harder for them to reach profitability. These sellers now have to decide whether they will stay on the platform or not. In addition to higher fees, Amazon is also changing its policies about how it calculates sales taxes. By doing so, Amazon is making it more difficult for small businesses to compete with larger retailers and therefore move away from a level playing field.
- Exchange Rates: Another difficulty that Amazon Sellers often run into is Exchange Rates when selling the products to customers from other countries and how to deal with currency conversions. When your customers pay you in a different currency than yours, they are subject to conversion rates. These rates change on a daily basis and can cause a lot of problems for sellers.
- Analyzing Your Financial Reports: The main point is that your profit consists of how well you can analyze your reports and how to plan efficiently. So if you haven’t spent enough time to sum up all your sales at the end of the month or year, you potentially have many problems.
It is possible to learn to do proper bookkeeping as an Amazon Seller on your own. But it takes time, time that takes you away from your core business and building your brand.
Our Partner, Synder, can help you
Stop running out of time! Let Synder software do the job flawlessly for you! You have to think outside the box if you want to succeed in the online selling game, and Synder is ready to help you with that. The accounting software's mission is to empower every business to grow.
All you have to do is connect your Amazon store to your accounting book and keep track of your sales so you won’t miss a dollar. Synder is also the perfect solution for you if you have more than one sales channel and especially in the case where some of them are connected to the same payment platform.
Store every sale in one place and save yourself the hassle.
What Software by Synder Provides for Your Business:
- Accurate monitoring: Keep track of your cash flow to stay away from problems with financial statements and see where you are standing right now. You can automate your accounting with the help of Synder, so the whole bookkeeping process will be done automatically in the background. And don’t worry about the errors. Synder software does its job with 100% accuracy.
- Smart Rules for Amazon fees categorization: This unique feature allows users to set triggers for data and actions. It’s a number of templates made beforehand with “if → then” conditions that help you build your own bookkeeping flows that fit your business.
- Multi-currency feature: Are you still thinking about how much money you have to lose due to the conversions or commission of your payment platform for the sale in different currencies? Well, now you can stay connected to every customer and accept payments in multiple currencies from any country you want. Synder will convey accurate conversion rate calculations with no hassle!
- Detailed reports: Comprehensive reports are available anytime; feel free to fill in any information needed to track your financial activities. All you have to do is just click and wait for a few minutes. In your Sales and Tax reports, you may indicate item and customer info, discounts, shipping fees, locations, Braintree fees, etc. You can generate the most detailed P&L reports to analyze the work you’ve done and produce an efficient plan for the development.
The Bottom line...
With all the technological advances and competition in today’s marketplace, many new entrepreneurs find themselves struggling to survive. Competition is fierce, and you need to stand out in order to stay afloat. The most successful businesses are constantly looking for creative ways to differentiate themselves from their competitors.
You can be one of these outstanding Amazon sellers using Synder software that helps you run a business with less stress and with more profit.
Learn more about Synder: check out a free trial or book a LIVE Demo.