E-Commerce Accounting
Accounting for Amazon, Shopify and Etsy sellers: payout reconciliation, inventory, COGS and marketplace sales tax.
How BATS handles e-commerce accounting
Marketplace payouts net out fees, refunds, advertising and reserves, so bank deposits rarely match sales. We reconcile platform reports to your books, track inventory and cost of goods sold correctly and keep your sales tax position clear.
We work with clients in all 50 states and Washington, D.C., so state-specific rules are covered whether you are in one state or several.
Who this is for
- Amazon FBA and FBM sellers
- Shopify, WooCommerce and Etsy store owners
- Multi-channel brands
- Sellers with inventory in third-party warehouses
Everything covered in this service
Payout and settlement reconciliation
Inventory and cost of goods sold accounting
Marketplace fee and advertising tracking
Sales tax review across channels
Margin reporting by product or channel
Year-end tax preparation
The paperwork behind e-commerce accounting
| Settlement reconciliation | Each payout matched to sales, fees, refunds and reserves |
|---|---|
| Inventory valuation | What your stock is worth at period end |
| Cost of goods sold schedule | Including freight-in and landed costs |
| Channel and product P&L | Profit by marketplace, store and SKU group |
| Sales tax review | Where you collect, where marketplaces collect, and gaps |
| 1099-K reconciliation | Platform-reported totals matched to your books |
What we'll need from you
Have these ready and your first meeting goes much faster. Don't worry if something is missing; we'll help you find it.
- Seller Central, Shopify, Etsy or other platform access or reports
- Supplier invoices and shipping costs
- Inventory counts or warehouse reports
- Advertising and app subscription costs
- Payment processor statements
How it works, step by step
Connect platforms
We connect your store and marketplace data to your books.
Reconcile
We match settlements to deposits each month.
Track inventory
We record inventory and cost of goods correctly.
Report
You see profit by channel and product.
Why clients choose BATS for e-commerce accounting
Reconciled every month
Every account tied out to its statement, not just categorised.
Tax-ready books
Set up to flow straight into your business return.
Clear reporting
Plain-English summaries with the numbers that matter.
Scales with you
Add payroll, AP/AR or CFO support as the business grows.
E-Commerce Accounting FAQs
11 answers to the questions clients ask us most. Don't see yours? Ask us directly.
Why don't my deposits match my sales?
Platforms deduct fees, refunds, advertising and reserves before paying out. We record each piece so your profit is accurate.
Do I need to track inventory for taxes?
Yes. Cost of goods sold is based on inventory, and getting it wrong distorts taxable income.
Do you handle sales tax for online sellers?
Yes, through our sales tax compliance service.
When will I receive a 1099-K?
Payment platforms generally issue Form 1099-K when your payments exceed $20,000 and 200 transactions in a year under current federal rules. Some states use lower thresholds.
Does inventory in Amazon warehouses create sales tax nexus?
Yes. Inventory stored in a state is a physical presence there, which can create sales tax and sometimes income tax obligations.
Can a small seller simplify inventory accounting?
Qualifying small businesses can use simplified inventory methods for tax, such as following the method used in their books. We check whether that helps you.
Should landed costs be in inventory?
Yes. Freight, duties and other costs to get products to your warehouse are part of inventory cost and flow into cost of goods sold as items sell.
Can you work with multiple sales channels?
Yes. We combine Amazon, Shopify, Etsy, wholesale and other channels into one set of books with profit by channel.
Which accounting software do you support?
QuickBooks Online and Xero most often, along with common payroll, bill pay and e-commerce tools.
Can we start partway through the year?
Yes. We bring the books up to date from the start of the year, then continue monthly.
How do we communicate with you?
By email, our client portal and scheduled calls. You have a named contact who knows your business.
Often paired with this service
Sales Tax Compliance
Sales tax nexus studies, state registrations, return filing and voluntary disclosure for sellers in multiple states.
Learn moreAccounting & BookkeepingBookkeeping Services
Monthly bookkeeping, bank reconciliations and financial reports so your numbers are always current and tax-ready.
Learn moreAccounting & BookkeepingQuickBooks Setup & Cleanup
QuickBooks Online setup, chart of accounts design, cleanup of messy books and training for you and your team.
Learn moreE-Commerce Accounting in every state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
- Wyoming
Popular cities
- Birmingham, AL
- Anchorage, AK
- Phoenix, AZ
- Little Rock, AR
- Los Angeles, CA
- Denver, CO
- Bridgeport, CT
- Wilmington, DE
- Jacksonville, FL
- Atlanta, GA
- Honolulu, HI
- Boise, ID
- Chicago, IL
- Indianapolis, IN
- Des Moines, IA
- Wichita, KS
- Louisville, KY
- New Orleans, LA
- Portland, ME
- Baltimore, MD
- Boston, MA
- Detroit, MI
- Minneapolis, MN
- Jackson, MS
- Kansas City, MO
- Billings, MT
- Omaha, NE
- Las Vegas, NV
- Manchester, NH
- Newark, NJ
- Albuquerque, NM
- New York City, NY
- Charlotte, NC
- Fargo, ND
- Columbus, OH
- Oklahoma City, OK
- Portland, OR
- Philadelphia, PA
- Providence, RI
- Charleston, SC
- Sioux Falls, SD
- Nashville, TN
- Houston, TX
- Salt Lake City, UT
- Burlington, VT
- Virginia Beach, VA
- Seattle, WA
- Washington
- Charleston, WV
- Milwaukee, WI
- Cheyenne, WY
Get help with e-commerce accounting
Book a consultation and get a clear plan for your taxes and books, wherever you are in the U.S.