Fulfilment by Amazon (FBA) has transformed the outlook for businesses throughout the UK since its inception in 2006. A ground-breaking programme, Amazon FBA has enabled thousands of small and medium-sized enterprises to market their products both within the UK and overseas, using Amazon’s huge reach to access customers beyond their local marketplace.
With no need to stock, pick, pack, and ship orders – work that is carried out by Amazon staff in one of their warehouses – it is little surprise that Fulfilment by Amazon has become a vital strategic sales tool for businesses across the country.
The Problem Of Accounting For FBA Sellers
Tracking your profit and loss is central to any business’s success, but the Amazon FBA business model differs considerably, posing significant challenges for sellers and their accountants. Accurate bookkeeping is essential to grow your business, maximise profits, manage your cash flow and reduce your expenses, but many small business owners have an undeveloped understanding of the complexities of accounting when they launch their enterprise. Equally, accountants may have a general knowledge of small businesses, but lack the knowledge or experience of Amazon’s model.
Choosing the best accounting software for Amazon sellers can be tricky, so consider these options to revitalise your business’s books, helping you to keep your accounts organised and securely backed up in the Cloud.
Xero For Amazon Sellers
A popular option for Amazon FBA businesses, Xero offers some valuable features that help to make bookkeeping straightforward, even for novice sellers, such as a simple user interface and a library of over 600 add-ons that integrate seamlessly with other applications.
Xero’s complete accountancy solution includes:
Inventory management, so you can ensure stock is supplied to Amazon in-line with customer demand, preventing inconvenient and costly delays in the supply chain.
Cost of sold goods overview, for real-time data about sales income.
Sales tax overview, for easy management of your tax liabilities that enables you to plan with accurate forecasting, avoiding surprises when you submit your annual return to HMRC.
Real-time financial reports, fully customisable to give you a comprehensive overview of your business’s performance.
Cloud-based storage, for instant access to all of Xero’s features from any location, via any device.
Quickbooks For Amazon Sellers
One of the most prominent accounting software solutions, Quickbooks is equally suited for Amazon sellers and other businesses, offering essential tools such as invoicing, income tracking, and expense tracking, as well as more complex financial reports.
Quickbook’s accountancy software includes:
Easy-to-learn format, particularly for those who are technically minded. With an array of tools and features, the software may pose more of a challenge to novice business owners, although many accountants are familiar with its set-up.
Basic inventory management which, although limited in scope and capability, enables stock tracking to ensure an uninterrupted supply chain. For more comprehensive inventory management, a separate program may be necessary.
A range of third party integrations, including multi-channel sales and dedicated inventory management.
Sales tax overview for managing tax liabilities.
Cloud-based storage, for ease of access to real-time data by multiple users from remote locations.
Accounting software can make bookkeeping simple for Amazon FBA sellers, allowing you to focus on growing your business.