Are you really making money? Our roundup of the top accounting packages for your Amazon Business

What is Accounting SoftwareAccounting software allows you to collect all your financial information together in one place, income, expenditure, assets (stock etc) and liabilities (loans, credit cards). You can review all this information and get a clear picture of how much money you are really making and how much you have left to spend.

Why do I need itWe take this running our own business to make money to enable us to live the life we want. Whilst we can work out the profit on each sale, to do this for all our sales and then account for costs can be very time consuming and mistakes can easily happen. Accounting software is great for doing this but it is also understanding where your money is currently tied. For example how much of your cash is tied up in stock and how much you owe on credit cards, all of this information will help support your cash flow for buying more stock and making more sales.

Overview of new accounting software
Round-up of the Top Accounting SoftwareIn our review, there are two types of accounting software. Software made specifically for Amazon sellers and software made for accounting in general which works with Amazon.You might think you should go straight for the software specifically made for Amazon, but you would be wrong. If you are looking to stay small and understand the VAT threshold (currently £85k – 2019) Amazon specific software will do you great. If you want to grow your business about the VAT level, then you should seriously consider fully fledged accounting software over the Amazon specific account software, as this will work with HMRC reporting for VAT payments, payroll payments and most likely with your accountant, when you decide to get one.
It's also worth noting that the level of detail you get from Amazon Specific Accounting Software such as SellerBoard and Fetch is much more detailed than what you will get back from Xero for your Amazon sales. Many bigger sellers might run both pieces of software at the same time, one for day to day monitoring and then the general accounting software to carry out all the necessary accounting for the government and higher level business overview.
Amazon Specific Accounting Software – Good for Self Employed wanting to stay under the VAT Threshold
SellerBoard – https://sellerboard.com/?partner=00603 (1 month extra free Trial when you use our link)
This piece of software is designed to work with only Amazon and all the Amazon Marketplaces (US, UK, EU Etc) so it is tailor-made for Amazon sellers. It offers great detail into the live sales, profit and loss on the ASIN level along with restocking alerts and refund management. It also integrates an automated customer follow up email on orders to encourage them to leave reviews, which is a nice touch.
Fetcher – https://fetcher.com/   Fetcher has a clear and easy to use interface. You can see all the information about your sales, on the ASIN level and history of the sales. This kind of information can be key to making a quick decision to adjust pricing. Fetcher offer PPC (pay-per-click) calculations into the P&L which Seller Board does not, so this might be a deciding factor if you are running PPC.

General Accounting Software – Ideal for big and growing business who will hit or go above the VAT threshold (~£85,000 per year)


Xero – https://www.xero.com/uk

 

Xero is probably the most used accounting software by Amazon sellers. It's used in conjunction with another online software tool called A2X (see about this below). Xero allows you to create invoices, reconciles Amazon FBA transactions, manage cash flow, sync inventory and has a wide range of add ons (700+) that can support you in your business. 

The automatic bank feeds make reconciling payments and income a breeze and automatically integrates with HMRC for any VAT and ‘Making Tax Digital Ready’ which is required by HMRC along with Payroll payments at a cost and the required automatic payroll submission to HMRC.

It is worth noting that if you sell outside of the UK you will trade in another currency so you will need to subscribe to their top package.

Wave Apps – Free – https://www.waveapps.com/

Wave Apps is similar to Xero in that it is accounting software designed for any business, not just Amazon. It's worth noting that Wave does not let you integrate with inventory management, although most people don't actually use this on Xero anyway. They would simply use a total opening and closing cash value of stock held, no record of each item. Wave is a great choice as it's free but will need to pay more for the payroll function when you require that, but this still makes it cheaper than Xero. There is a paid for add on call Taxomate, see below, that will auto import your Amazon sales into the software.
QuickBooks – https://quickbooks.intuit.com/uk/

Quick books are very similar to Xero and offer the same functions such as tracking income and expense. Generally the offer exactly the same functionally, stock control, invoicing and bills, bank accounting linking and auto-downloading of transaction. Some people have reported Xero to have an easier to use interface, but that is subjective.
FreshBooks – https://www.freshbooks.com/

Freshbooks offers the same functionality as Xero and Quickbooks at a similar price point. They do say they integrate with Amazon through the Zapier API but it's worth noting that the Zapier API only works with Amazon US and not EU. This means you need to import the transaction manually.

Add Ons – https://www.a2xaccounting.com/

Taxomoate – https://www.taxomate.com/
Link My Book – https://linkmybooks.com?fpr=thomas95(Aff)

A2X & Taxomate & Link My Books – Amazon to Xero or QuickBooks or Taxomate to WaveThis software automatically fetches all your revenue and cost information from Amazon and creates the invoice and bill on your accounting software.  

Whilst you might think you can do this yourself, which you can, it's not as easy as it sounds. Amazon has a huge number of cost lines and different revenue lines for each marketplace all at different tax rates, which makes trying to understand what they are telling you, very difficult. Once A2X/Taxomate or Link My Books is set up, it makes importing all your payment information super easy and quick. Leaving you more time to work on your Amazon business.
Below is an example of one invoice for sales from one marketplace. You can see how many entries are made and the different tax codes used.If we had to recommend one of these three it would be Link My Books because it's super easy to set up and use, which is not the case for A2X on the setup with mapping being a pain. We really like the price, its the cheapest out of the three and they all do the same job, so why pay more.

 

Final Notes 

We have chosen to go with Xero for a few reasons, mainly because it's the number one online accounting software, so support and documentation are easy to find to solve problems. Integration is very well supported, our accountants use this software which makes communication easier, and the price is similar to the other options.

 

Legal Disclaimer 

We at FastTrack FBA are not qualified accounting professionals and cannot offer qualified financial advice nor should this article be accepted as qualified financial advice. This is our opinion of following accountant packages