Amazon is one of the most known marketplace in the world, and it has an established customer base. With over 39 percent of the total retail share in the US in 2022, Amazon offers merchants access to a large pool of potential buyers.
Once you have identified a product, determined the most profitable sales approach, created an Amazon seller account, and listed your items, you can let Amazon take over the rest. The most popular program, Fulfillment by Amazon (FBA), will handle your inventory storage, wrapping, and sending.
But although Amazon does most of the work for order completion, you still need to manage the business, including the finances.
Without being aware of your finances, it is unlikely for you to know if your enterprise is prosperous and sustainable.
Fortunately, staying in charge of your finances does not have to be difficult. It may be intimidating at first, but it will become easier after you understand how to get it done. This is why keeping financial records is necessary for every Amazon seller.
Let’s put some more light on it.
Why Do Amazon Sellers Need to Manage Financial Accounts?
Managing financial accounts allows sellers like you to track their performance and make informed decisions regarding pricing, inventory, and other aspects of the business.
Here are some benefits you can reap by managing accounts properly:
Tracking Performance:
Accurately tracking sales, earnings, expenses, and other financial metrics is key to seeing how the business is performing and where to focus resources.
Setting Prices:
Careful analysis of profits can help determine the optimal price points for products that will bring in the most revenue.
Managing Inventory:
Detailed financial records can provide insight into inventory needs and allow sellers to adjust accordingly.
Tax Planning:
Having up-to-date financial records can help Amazon sellers plan ahead for taxes and ensure they comply with government regulations on time.
Measuring Growth:
Comparing month-over-month or year-over-year performance data helps identify growth opportunities or areas that need improvement.
Raise Investment:
Scaling a business requires investment. The financial reports and managed accounts help sellers raise investments easily.
Given that accounting is essential for every Amazon seller, you need to prioritize managing accounts for your business. While outsourcing accounting to experts like IBN Technologies is the best option, many retailers want to do it by themselves.
Hence, here we’re listing the top 5 accounting software Amazon Retailers can use.
Top 5 Online Accounting Software for Amazon Retailers
1.Xero:
Xero is an online accounting software specifically designed for small businesses, accountants, and bookkeepers. It can help you keep track of your finances and make informed decisions about your Amazon business.
Xero provides real-time updates and insights, allowing users to better manage their cash flow, cash outflows, expenses, taxes, and compliance with government regulations.
Xero also integrates with other software systems like Amazon Marketplace Web Services (MWS), allowing users to sync sales data from Amazon into Xero easily.
Top Features for Amazon Sellers:
Automated tracking of inventory sales, purchases, and accounting entries
Easily connect to your Amazon account
Automatically generate invoices based on sales data
Generate reports on profit/loss statements and other financial reports
Manage cash flow across multiple accounts (including AWS)
Create transfers between accounts or divisions within the business
Pros:
User-friendly interface that makes it easy to manage financial records
Accurate financial records can be produced in real-time thanks to automated processes quickly
Integrates well with other software systems like AWS
Cons:
Not as feature-rich compared to some of the more expensive accounting software packages available on the market
Pricing Plans:
Xero offers three separate pricing plans for businesses of different sizes. The Starter plan is $25 per month, the Standard plan is $40 per month, and the Premium plan is $54 per month.
2.QuickBooks:
QuickBooks is a comprehensive accounting software designed to help businesses keep track of their finances. It helps Amazon sellers manage their income and expenses, saving time and reducing the stress of manual bookkeeping.
QuickBooks also provides detailed reports to give an in-depth look at business performance and features connections to other financial platforms such as Amazon Payouts. With its intuitive interface, automated processes, and mobile app, QuickBooks makes it easier than ever for Amazon sellers to stay on top of their finances.
Top Features for Amazon Sellers:
Automated bookkeeping that simplifies the process of tracking income and expenses
Detailed reports that provide a comprehensive look at business performance
Connectivity with other financial platforms like Amazon Payouts
A mobile app that allows users to access their financial data from anywhere
Pros:
Easy-to-use interface with intuitive features for managing finances
Automated processes for tracking income and expenses
Comprehensive reports on business performance
Cons:
Limited customization options compared to other software packages on the market
Pricing Plans:
QuickBooks Online offers four separate pricing plans for businesses of different sizes. The Simple Start plan is $15 per month, the Essentials plan is $27.50 per month, the Plus plan is $42.50 per month, and the Advanced plan is $100 per month.
3.FreshBooks
FreshBooks is an accounting and invoicing software designed to help small businesses save time and money. It provides a range of features that make it easier for Amazon sellers to track expenses, manage accounts receivable, create invoices, and accept payments.
FreshBooks integrates with Amazon Payouts so sellers can easily reconcile their sales and expenses. Additionally, FreshBooks has a mobile app for iOS and Android devices that lets users access the software on the go.
Top Features for Amazon Sellers:
Automated tracking of sales and expenses via Amazon Payouts
Create and email professional invoices to customers
Easily track time, manage contacts, generate reports, and more
Integration with payment gateways such as Stripe or Authorize.net
Ability to accept payments online (e.g., PayPal or credit card)
Mobile app for iOS and Android devices to access FreshBooks on the go
Pros:
Intuitive interface makes it easy to use for new users
Automated processes save time on accounting tasks
Mobile app allows users to access the software on the go
Cons:
No inventory tracking feature available
Pricing Plans:
FreshBooks offers four different plans ranging from $4.50/month to $16.50/month. All plans include unlimited invoices, reports, estimates, and time-tracking features. However, the higher-tier plans offer features such as client portals and multiple currency support that are unavailable in the lower-tier plans.
4.Zoho Books
Zoho Books is a cloud-based accounting software designed to help businesses manage their finances. It is specifically designed to help Amazon sellers track income and expenses, as well as reconcile their accounts with Amazon Payouts.
Zoho Books also provides detailed reports to give an in-depth look at business performance, as well as features integrations with other financial platforms. Additionally, Zoho Books offers a mobile app for on-the-go access to financials and allows users to set automated reminders and send invoices directly from the platform.
Lastly, FYI, it’s the only accounting software in our list offering a lifetime free plan.
Top Features for Amazon Sellers:
Reconcile Amazon Payouts with Zoho Books
Easily generate invoices and track payments.
Monitor expenses and set budget alerts
Get detailed insights into business performance with reports
Integrate with other financial platforms like PayPal and Stripe
Access your accounts from anywhere with the mobile app
Pros:
Easy to use for both beginners and experienced users
Automate many of the tedious accounting tasks, saving time and money
Cons:
Limited support for international customers
Pricing Plans:
Zoho Books has six pricing plans, ranging from a free plan to $240 per month. All plans include managing invoices, expense tracking, bank reconciliation, and other features needed to run a successful business.
5.Sage 50cloud Accounting
Sage 50cloud Accounting helps Amazon sellers track their finances and manage their business. It provides the ability to create invoices, bills, and reports quickly to ensure financial accuracy.
The software also offers features such as bank reconciliation, fixed asset management, multi-currency transactions, and Tax filing.
Sage 50cloud Accounting allows Amazon sellers to create tailored reports for better decision-making and insights into their business performance. Additionally, the software integrates with other online services, such as PayPal, for seamless data transfer.
Top Features for Amazon Sellers:
Invoicing
Multi-currency transactions
Bank Reconciliation
Fixed asset management
GST filing
Report customization
Integration with online services such as PayPal
Pros:
User-friendly interface
Robust features for managing finances
Easy data transfer to other online services
Cons:
Limited third-party integration options
Pricing Plans:
Sage 50cloud Accounting offers three pricing plans, starting at $29/month. Each plan includes different features, such as multi-currency transactions, cash flow forecasting, and more.
Pick the One that Suits Your Needs
When choosing the right accounting software for Amazon retail business, it is important for the owners to consider the features and pricing plans offered by each software.
It is also essential to consider how much time and effort each software requires in order to set up and use the features effectively.
Additionally, Amazon Retailers should look into whether or not a particular software has an integration with any payment gateways they may be using.
Finally, Amazon Retailers should take into account their overall budget when selecting accounting software that meets their needs. By weighing all of these factors, Amazon Retailers can choose accounting software that fits their business needs best.
