Overview

Who this page is for.

Online brand accountants work with direct-to-consumer and marketplace sellers whose revenue lands net of platform fees, whose stock sits in several locations at once, and whose tax exposure follows that stock across borders. The output is contribution margin by channel and by SKU, produced monthly rather than at the year end.

E-commerce accounting requires platform-specific expertise that most generalist firms simply don't have. Shopify Payments settlements arrive net of fees, refunds and disputes, but a clean ledger needs all four separated. Marketplaces (Amazon, Etsy, eBay, Faire) come with facilitator sales tax that's either remitted by the marketplace or owed by the seller depending on the state. International sales trigger OSS / IOSS rules. And underneath it all, real inventory needs proper accounting under IAS 2 or ASC 330.

Get the platform connectors right and the rest follows. We use A2X (or equivalent) for Shopify and Amazon, integrated into your Xero or QuickBooks. We use Avalara or TaxJar for US multi-state sales tax. We track inventory at the SKU level for brands carrying significant stock. And we surface CAC, contribution margin and cohort LTV in your monthly reporting.

We work with e-commerce brands across all our markets: UK-based DTC brands selling into the EU and US, US-based Shopify and Amazon sellers, UAE-based brands targeting the GCC. The mechanics shift by jurisdiction but the discipline is the same.

Audience, not service

Is your brand the kind we mean by an online brand?

This page is written for the operator rather than the buyer of a task. The brands we mean sell on their own storefront plus at least one marketplace, hold physical stock, take returns at a rate that materially affects margin, and spend on paid acquisition against a contribution figure they are not confident in. If that describes you, the questions that follow are the ones worth asking your accountant. If you already know what you need done and simply want it delivered, our e-commerce accounting service sets out the scope, the cadence and the price for exactly that work.

The four numbers we build every month are the same regardless of platform: gross revenue before any fee deduction, contribution margin per channel after platform fees, fulfilment and returns, inventory position split by location, and cash conversion from order to settled bank receipt. None of them come from a bank feed. Storefront revenue arrives as a payout that has already netted processing fees, chargebacks and reserve movements. Marketplace revenue arrives net of a longer list still. Getting to gross means pulling settlement files, not statements.

The structural traps are consistent across the sector. Returns are recorded as they are refunded rather than provisioned as they are earned, so a strong November flatters the year and a heavy January destroys it. Inventory is expensed on purchase rather than capitalised, so profit tracks buying decisions instead of trading. Consumer tax is assumed to be the platform's problem, when marketplace facilitator rules cover marketplace sales only, leaving the seller responsible for its own storefront and for registration wherever stock is held, which in the UK is measured on the rolling basis HMRC sets out under register for VAT. Gift cards and store credit sit as revenue when they are a liability until redeemed. We unpick these in that order, because each one distorts the next.

Sellers concentrated on a single platform are usually better served by the platform-specific pages: Shopify accounting for storefront-led brands and Amazon FBA accounting for marketplace-led ones. The ledger structure behind all three is described in our Shopify and Amazon chart of accounts guide. Brands deciding how much to hand over usually start from our full list of accounting services, which sets out each service by what it delivers each month. The platform, sales tax and margin guides we write for sellers are collected on the Accountaire blog.

Channel mechanics

What settles, by channel

Where the money is netted before it reaches you, and who is responsible for consumer tax.

What settles, by channel
ChannelWhat hits the bankNetted off before payoutWho remits consumer tax
Own storefrontProcessor payoutProcessing fees, chargebacks, reservesThe seller, everywhere it is registered
Amazon (FBA or FBM)14-day settlementReferral, fulfilment, storage, ads, refundsAmazon under facilitator rules, seller elsewhere
eBay and EtsyScheduled payoutFinal value fees, ad fees, refundsThe marketplace, in states and countries with facilitator rules
Wholesale and B2BInvoice settlementNothing, but often 30 to 60 day termsThe seller, subject to exemption or reverse charge
Subscription and D2C bundlesProcessor payoutProcessing fees, failed payment retriesThe seller, on the delivery date not the charge date
What we handle

E-commerce-specific scope.

Built around the platforms and complexity of online retail.

  • Shopify / Woo Commerce / BigCommerce reconciliationSettlement-statement-level reconciliation via A2X or equivalent. Sales, refunds, fees, shipping income separated cleanly.
  • Amazon FBA accountingSettlement statements imported. FBA fees, storage, advertising, refunds and inventory adjustments split into separate accounts.
  • Multi-jurisdictional sales tax US economic nexus tracking via Avalara / TaxJar. UK MTD VAT. EU OSS / IOSS. UAE FTA VAT. Marketplace facilitator rules applied correctly.
  • Inventory accounting (IAS 2 / ASC 330) Cost flow method applied consistently. Write-downs to NRV. Freight-in capitalisation. Stock counts reconciled to ledger.
  • Returns reserves For brands with material return rates, returns reserves estimated based on rolling 90-day data. Prevents month-end gross-margin distortion.
  • Unit economics reporting CAC by channel, contribution margin by SKU, cohort LTV. Surfaced in monthly pack.
  • Working capital planning For brands with significant stock investment, cash-to-cash cycle modelled and reorder timing informed.
  • Multi-currency settlement handling For UK / EU brands receiving USD on Shopify, FX gains/losses handled correctly under reporting GAAP.
"Our previous bookkeeper couldn't reconcile Shopify Payments. Our gross margin was off by 12 points. Accountaire rebuilt the books, fixed the inventory accounting and now we're making decisions with real numbers."
F
Founder · DTC homeware brand8-figure ARR · London
Why us

Why e-commerce brands choose us.

A practice built around platform-specific complexity.

01

A2X & integration specialists

Connectors configured correctly. Settlement reconciliation that actually reconciles. No mystery deposits.

02

Sales tax across jurisdictions

US nexus, UK MTD, EU OSS/IOSS, UAE FTA: handled within scope. No separate sales-tax provider needed.

03

Inventory done properly

IAS 2 / ASC 330 applied consistently. Audit-ready inventory accounting.

04

Unit economics surfaced

CAC, contribution margin and cohort LTV actually appear in your monthly pack, not just on a deck.

Online brand accountants: what founders ask.

What platforms do you support?
Every mainstream storefront and marketplace is in scope, so the useful question is what the connector actually posts. A channel that exposes orders but no settlement file has to be rebuilt from the processor side, and it needs its own clearing account. Payout cadence causes more trouble than the number of channels: a weekly payout sitting beside a fortnightly settlement leaves real cash unmatched at every month end.
How do you handle Amazon FBA accounting?
Settlement periods rarely line up with a calendar month, so one that straddles the month end gets apportioned rather than posted whole. Post it whole and margin swings for no trading reason at all. Reimbursements need pulling out separately: Amazon credits them inside the same settlement, where they net against fees and disappear unless someone checks them against your own claims.
What about EU sales after Brexit?
The €10k line is cumulative across the EU rather than per country, so a brand selling into five markets can cross it without any single one looking significant. Above it, B2C distance sales go through OSS (One Stop Shop) as a single return. Consignments under €150 sit in a scheme of their own, IOSS (Import One Stop Shop), which decides whether your customer pays the VAT at checkout or gets stopped by a courier asking for it. We register and file both.
Can you handle our US sales tax?
Crossing a state threshold creates a liability from that date rather than from the month you notice it, so back periods build up quietly and surface during diligence. Marketplace sales are usually collected by the platform, yet several states still count them toward your own threshold. Once registered, a zero return still has to be filed.
How do you account for inventory?
Under IAS 2 (UK / international) or ASC 330 (US). Cost flow method (typically weighted average) applied consistently. Freight-in capitalised. Periodic stock counts reconciled to ledger. Write-downs to net realisable value where applicable.
Do you handle 3PL and FBA inventory simultaneously?
Yes: common setup. 3PL stock and FBA stock tracked in separate inventory accounts, reconciled to the warehouse-management system. Inter-warehouse transfers handled correctly.
Recommended services

Where online brands go next.

SERVICE

E-commerce accounting

Service-level page with detailed scope.

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PLATFORM

Shopify brands

Specifically for Shopify-native operators.

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PLATFORM

Amazon sellers

Specifically for FBA and Seller Central operators.

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ADVISORY

Fractional CFO for DTC brands

Cash runway, inventory buying plans and investor-ready reporting.

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MARKET

US sales tax for online sellers

Nexus, registration and returns for brands selling into the States.

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For DTC brands

Want e-commerce accounting done properly?

Thirty minutes to review your current platform setup and sales-tax position.