Overview

Amazon is hard to account for. We make it routine.

Amazon FBA accountants reconcile Seller Central settlements to the ledger, separate gross sales from the fees Amazon nets off before payout, value inventory sitting in fulfilment centres, and file sales tax in the states and countries where marketplace facilitator rules leave the seller liable. That work is monthly, because settlements land every 14 days.

Amazon bookkeeping done badly looks like deposits hitting the bank account and being booked as revenue. That misses everything that actually matters: refunds, chargebacks, FBA fees, advertising spend, storage fees, returns adjustments, marketplace facilitator sales tax, inventory reconciliation, multi-marketplace settlement timing. A Seller Central account doing $5M in revenue can easily have $4M in settlement adjustments hidden inside the deposits.

We treat Amazon as its own discipline. Settlement statements imported and reconciled at the line-item level. FBA fees, FBA storage, FBA inbound, FBA disposal split into separate cost accounts. Advertising spend tracked at the campaign level. Inventory reconciled to Amazon's reports and your inbound shipments. Multi-marketplace operations consolidated cleanly.

On top of platform-level work, Amazon sellers face complex sales-tax positions. Most US states now require marketplace facilitators to collect on behalf of sellers, but seller-specific obligations remain (income tax nexus, state-specific licensing, inventory-in-state economic nexus). We track all of this through Avalara or TaxJar integrated with Seller Central.

What we handle

Amazon-specific scope.

Built around the realities of FBA and marketplace operations.

  • Settlement statement reconciliation Every Amazon settlement reconciled to bank deposit. Line-item splits for fees, refunds, advertising, storage, FBA reimbursements.
  • FBA inventory accounting Inventory tracked at the SKU level. Reconciled to Amazon's inventory reports. Inbound shipments, transfers and disposals captured correctly.
  • Multi-marketplace operations Amazon US, UK, EU, AU, JP: consolidated reporting with per-marketplace performance visible.
  • Multi-state sales tax (US) Income tax nexus tracking. State-specific licensing where required. Avalara/TaxJar integration. Marketplace facilitator rules applied correctly.
  • Advertising cost attribution Sponsored Products, Sponsored Brands, Sponsored Display tracked at the campaign level. ACOS / TACOS calculations.
  • Returns and reimbursement tracking FBA reimbursements (for lost / damaged inventory) tracked. Returns reserves estimated.
  • COGS at the SKU levelLanded cost capitalised (product cost + freight-in + duty). Sold-through inventory recognised correctly.
  • Unit economics by SKUContribution margin per SKU after Amazon fees, advertising and COGS. The data that should drive product-mix decisions.
Where FBA books break

What goes wrong first in an Amazon seller's books?

The first failure is almost always the same. The Amazon disbursement is treated as revenue. A 14-day settlement arrives net of referral fees, FBA fulfilment fees, storage, long-term storage surcharges, advertising, refunds and reserve movements, so booking the bank credit as sales understates turnover and hides every cost line. A seller doing 60,000 pounds a month gross can show 41,000 pounds of revenue and no cost of sales at all. Gross margin becomes meaningless, and so does any pricing decision made from it.

The second failure follows within a quarter: inventory. FBA stock sits in Amazon fulfilment centres, in transit between them, in a 3PL, and in removal orders, and none of that is visible from the bank feed. Without a SKU-level inventory ledger the cost of goods sold is whatever was purchased that month, which makes profit swing with purchasing rather than with trading. Reimbursements for lost and damaged units compound it, because Amazon credits them at its own valuation, not yours, and they arrive months after the loss.

Third comes tax. Marketplace facilitator rules mean Amazon collects and remits US sales tax in every state that has them, a patchwork the Streamlined Sales Tax Governing Board has only partly harmonised, but the seller still owns registration, nexus tracking and the returns in states where inventory creates physical presence. In the EU the same split applies through the Import One Stop Shop for consignments at or below 150 euros, with the seller responsible for the rest. UK sellers also have to watch the domestic registration point set out in HMRC's VAT registration guidance, which is measured on a rolling twelve months rather than on the accounting year. We work through this order deliberately: settlements first, then inventory, then registrations, because fixing tax on top of unreconciled settlements just moves the error downstream. Sellers running Shopify alongside Amazon should read our Shopify accounting page too, and the underlying ledger design is set out in our Shopify and Amazon chart of accounts guide. The monthly reconciliation and the sales tax filings themselves run through our e-commerce accounting service, and sellers with a US entity should read accounting for US small businesses for the federal and state calendar that sits behind it. Everything else we run for sellers is listed in our full list of accounting services.

"My previous accountant booked Amazon deposits as revenue. We thought we had 40% gross margin. Real number was 22%. Accountaire rebuilt twelve months of books and now I actually know what each SKU is contributing."
F
Founder · 7-figure FBA brandAmazon US + UK + EU
Settlement anatomy

What is actually inside an Amazon settlement deposit

One deposit lands roughly every 14 days. Each line below is netted off before the money arrives, and each needs an account of its own.

What is actually inside an Amazon settlement deposit
Line inside the settlementWhat it isWhere it belongsPart of revenue?
Product salesGross order value, before anything is deductedRevenue, split by marketplaceYes
Refunds and returnsReversals, often landing weeks after the original orderContra revenue, not a cost lineReduces it
Referral feesAmazon's commission per unit soldSelling costNo
FBA fulfilment, storage, inbound and disposal feesFour charges that behave differently across the yearFour separate cost accounts rather than oneNo
Sponsored Products, Brands and DisplayAdvertising spend, which drives ACOS and TACOSMarketing cost, tracked per campaignNo
Marketplace facilitator taxCollected and remitted by Amazon in most US statesA liability passing through, never yours to keepNo
FBA reimbursementsCompensation for inventory lost or damaged in the networkOther income, matched against the stock written offNo
Reserve movementsAmounts held back and released laterTiming only, and nothing to do with performanceNo
Why us

Why Amazon sellers choose us.

A practice that actually understands Seller Central.

01

A2X specialists

Configured correctly. Settlements reconciling to the penny. No mystery deposits.

02

Multi-marketplace native

Amazon US + UK + EU consolidated reporting is standard, not extra scope.

03

Inventory done properly

FBA inventory reconciled to Amazon's reports. Audit-ready under IAS 2 / ASC 330.

04

Sales tax handled

Multi-state US economic nexus tracking. EU VAT. UK MTD. All within scope.

What do Amazon FBA accountants get asked most?

Do you handle Amazon Vendor Central as well?
Vendor Central (where Amazon is your customer) and Seller Central (where you sell to consumers) are both within scope. The mechanics differ; the discipline behind them does not.
How do you handle multi-marketplace FBA?
Each marketplace tracked separately, then consolidated. Inter-marketplace inventory transfers handled correctly. Settlement timing differences reconciled. Pan-EU and remote-fulfilment programs supported.
What about EU VAT after Brexit?
For UK-based sellers using Amazon EU marketplaces, we handle the VAT registration where required (typically Germany, France, Italy, Spain, Poland, Czech Republic) plus OSS for distance sales. For US sellers, we coordinate the same registrations.
Can you track FBA reimbursements?
We audit Amazon's reimbursements against our own records. Many sellers are owed material amounts they've never claimed. Where the recovery opportunity justifies it, we work with reimbursement specialists.
What about Amazon's marketplace facilitator collection?
Most US states now require Amazon to collect and remit sales tax on your behalf. We track which states still require seller-direct filing (typically for income tax nexus or back-period filings) and handle those separately.
How do you handle Amazon advertising spend?
The double count is the usual finding. Some advertising is netted off inside the settlement and some is billed to a card, so a seller who books both has paid for the same spend twice in the accounts. We tie campaign-level spend back to the settlement lines before anything else. Only then is ACOS worth reading, and only next to contribution margin: a campaign at 18% ACOS still loses money on a thin SKU.
Recommended services

Where Amazon sellers go next.

BROADER

E-commerce

Multi-platform e-commerce specialism.

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PLATFORM

Shopify brands

Specifically for Shopify operators.

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SERVICE

E-commerce accounting

Service-level page.

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CLEAN-UP

Catch-up bookkeeping for sellers

For accounts with months of unreconciled settlements behind them.

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TAX

Multi-state sales tax compliance

Nexus tracking, registrations and returns where Amazon does not collect.

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MARKET

US accounting for online sellers

Federal and state filings for sellers trading into the United States.

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For Amazon sellers

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