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Around a decade ago, there were very few decent Amazon accounting software to choose from. Today, it’s the complete opposite, an endless list of accounting software, each claiming to be ‘the best’ and ‘most comprehensive’ tool around.
As an FBA seller, your time is far too valuable to be spent researching and comparing different software—managing a multi-faceted online business is already a handful!
That’s why, in this post, we’ve compiled and summarized a list of the best accounting software for Amazon FBA. The evaluation criteria is based on the effectiveness and depth of features, ease of use, strengths and weaknesses, and finally, value for money.
A reputable Amazon accounting software can help you in so many ways. It can give you access to financial reports, an overview of your cash flows, and mitigate the risk of calculation errors, to name a few . Here’s a list of some of the benefits that you can expect:
Note: There’s plenty of free accounting software available to Amazon FBA sellers online. However, such software is generally bug-ridden, has sluggish performance, and boasts inaccurate reporting features. It’s cheaper to invest in a reliable FBA accounting software for Amazon than pay for the inevitable damages caused by freeware.
When selecting an Amazon seller accounting software for your business, make sure it has reconciliation or ‘double-entry accounting’ capabilities. Plenty of affordable bookkeeping software and Amazon inventory management apps advertise having ‘profit and loss reporting’ features (also called single-entry accounting), but that alone isn’t enough.
In single-entry accounting, you record a transaction without taking into account the role of a financial institution (e.g. a bank), increasing the likelihood of bookkeeping errors. If any part of this explanation seems complicated, just make sure that the Amazon bookkeeping software you’re interested in is a double-entry accounting system or features double-entry accounting capabilities.
Out of the myriad of Amazon FBA accounting software available online, the following software deserves your attention.
Note: The accounting software mentioned in this list are in no particular order.
Xero is great introductory accounting software for online retailers. It features a powerful yet intuitive dashboard that helps merchants with bank transactions, invoice and report generation, tax calculations, cash flow analysis, and more.
The web-based software easily integrates with your Amazon seller account and lets you gauge performance based on key performance indicators (KPIs) like shipping, expenditures, and sales. Since Xero relies on an open application programming (API) interface, Amazon sellers can seamlessly incorporate third-party add-ons for enhanced functionality.
Currently, the list of supported apps exceeds 800, making integration Xero’s strong suit. Users can also customize the dashboard to view account activity whereas the reconciliation feature settles transactions with a single click.
On the inventory management side of things, Xero tracks each item and updates sellers regarding ideal restock timings. As the software also takes into account shipping and storage costs, you gain a more accurate picture of your bottom line
Have employee salaries that need taking care of? An in-built payroll feature powered by Gusto handles the state-based tax calculations and ensures all payments are made on time. Don’t be fooled by the lack of accounting jargon and overly simplified layout—like all credible Amazon seller bookkeeping software, Xero operates on a double-entry accounting basis.
Pricing
Xero has three different pricing plans Amazon sellers can choose from. The cheapest one is the Early package and costs $11 per month. It’s suited for new sellers and those with minimal accounting requirements. Then there’s the Growing subscription plan, aptly named for growing small businesses that need to reconcile transactions in bulk.
Finally, the Established plan will set you back $62 per month. If you need in-depth analysis, use multiple currencies, or need to track projects, this one’s for you.
Note: Starting November 15th, 2021, Xero’s subscription plans will experience a bump in prices.
Strengths:
Weaknesses:
QuickBooks is a household name in the world of cloud-based accounting software. They’re some of the oldest SaaS providers in the marketplace and are trusted by millions of users worldwide, QuickBooks Online uses double-entry accounting and is a welcome addition for Amazon startups and established brands alike.
The software takes care of all the basic accounting functions: invoicing, bank feeds, expense handling, multi-currency support, etc. But two features stand out from the rest. The first one is an in-built payroll system (comes with an extra free). Users migrating to QuickBooks from other accounting software can save a good chunk of money thanks to payroll platform integrations including Gusto, OnPay, and Patriot.
The second is QuickBooks’ ability to function in multiple Amazon marketplaces including the newer ones as well. Even if your local Amazon marketplace isn’t included in the list, there’s an option to set a custom rate to calculate sales tax. You can also access a range of financial statements and reports making it easier to gain insights into future trends.
QuickBooks Online has much to offer Amazon sellers, but as with any other accounting software, it has its own share of drawbacks which may not be evident at first glance. Unlike Xero, sellers must pay relatively higher subscription costs, not because the basic package isn’t affordable, but because most Amazon-related features are included in the pricier plans.
To manage employee-related tasks, you’ll have to purchase the mid-tier plan whereas access to inventory management and tracking requires subscribing to QuickBook Online’s most expensive package. Unfortunately, some—if not most—of the features included in Essentials and Plus packages aren’t useful for Amazon FBA sellers to begin with.
There’s a free 30-day trial but knowing you’ll eventually have to subscribe to costly monthly plans where most features aren’t relevant to your business makes this offer far less enticing.
Side note: QuickBooks Online and QuickBooks Desktop are different software. QuickBooks Desktop is an accounting ERP (enterprise resource planning) software purchased and installed on office desktop computers. QuickBooks Online is a web-based subscription service with all the perks we just mentioned.
QuickBooks Desktop is far more expensive than Online and has even fewer features relevant to Amazon sellers.
Pricing
Amazon sellers can choose from three different pricing plans namely Simple Start, Essentials, and Plus. But as you just learned, only the Essential and Plus plans have features that are useful for Amazon sellers. Currently, there’s a 70% discount for the first 3 months on all 3 plans. These are:
Finally, the strengths and weaknesses.
Strengths:
Weaknesses
Cloud-based software and Amazon accounting bookkeeping solutions go hand in hand. That’s because Amazon FBA sellers need to track their sales and financials and aren’t interested in maintaining hardcore, expensive accounting software on dedicated desktop PCs. In this regard, GoDaddy fits the bill.
Best described as basic accounting software, GoDaddy consists of essential features including profit and loss tracking, viewing account balance, verifying sales numbers, and automating invoice generation. You can also accept payments from your clients via electronic checks.
Users will be pleasantly surprised to find a host of visual-rich reporting capabilities, given how inexpensive a monthly subscription costs. The interface allows for quick viewing of your inventory and account balances. There’s also an option to edit and highlight key information found within all reports.
A Schedule C worksheet (usually included in high-end accounting software) and an in-built billable expense function are all the more reasons why GoDaddy is the accounting software of choice for many Amazon sellers. Now, let’s move onto the not-so-desirable aspects of this software.
First, the application cannot create additional user accounts, which means that it’s only useful for sole proprietors. Secondly, there’s no trial period for any of its pricing plans. If the software isn’t what you’re looking for—you have no choice but to consider the first month’s subscription as a bad investment. Finally, the lack of double-entry accounting is off-putting for most Amazon sellers.
Pricing
GoDaddy offers users the choice of three standard pricing plans:
The starter package has all the options you would expect from an accounting software: create and send invoices, track mileage and time for tax calculations, generate business reports for profit and loss accountability, and accept payments via debit and credit cards.
The Essentials package grants access to tax worksheets, the ability to import bank transactions and sales data from online retail marketplaces, and unlimited business reports. The premium package is for Amazon sellers that want the recurring invoice feature.
Strengths:
Weaknesses:
Founded in 2002, FreshBooks is best suited for Amazon FBA merchants who want accounting software that isn’t as complex as, let’s say, QuickBooks. This cloud-based solution is easy to configure and lets users generate reports that are crucial for making better sales decisions.
FreshBooks has found an audience with small entrepreneurs and Amazon sellers thanks to its ease of use as well as a wide variety of helpful features. Examples include sales tax summaries and profit and loss reporting. You can also link multiple bank accounts and view transactions after downloading them straight from the bank.
The biggest benefit, however, has to be the inventory management feature located on the items and services page. Through FreshBooks accounting software, users can track sales tax and leverage the invoicing module to send invoices, view business performance in real-time, and receive payments. The multi-currency feature is a much-needed addition for Amazon sellers operating in more than one marketplace.
You can tell how FreshBooks goes the extra mile to make its software simple and welcoming for newcomers, especially for those with no accounting background. For example, it does away with the ‘account payables’ and ‘account receivables’ terms and replaces them with ‘To Me’ and ‘For Me’ making is easier to understand the flow of funds going in and out of the business.
Users can download and view their financials via the mobile app for added convenience. Note that the app functionality is significantly reduced as compared to the cloud version. Customer support is known to be responsive so in the unlikely case that you encounter issues with the software, you’re business won’t experience any setbacks.
FreshBooks would tick all the ‘best accounting software for Amazon FBA’ boxes if it hadn’t been for the fact that there’s no accounts payable feature. Sellers that wish to add users must pay extra and once your Amazon business begins to grow, you’ll need to switch over to more comprehensive accounting solutions. Also, you can’t sync transactions since Freshbooks doesn’t directly connect with Amazon.
Pricing:
FreshBooks has three different pricing plans you can choose from (each one has a 60% discount for the first 6 months):
Apart from the basic Lite package, each pricing plan has an advance payment option for charging clients via credit cards, virtual terminal, and subscription-based billing. If FreshBooks doesn’t satisfy your bookkeeping needs, you can claim a full refund within 30 days of starting.
Strengths:
Weaknesses:
A2X is a unique entry on this list because it’s not a stand-alone desktop or cloud bookkeeping software. Rather, it’s an add-on that enhances the functionality of other Amazon accounting software.
It fetches data like the cost of goods sold and seller inventory status straight from an Amazon account and feeds it into software like QuickBooks Online and Xero. Without the help of accounting software, the process is tiresome and increases the risk of reporting errors.
With the help of A2X, sellers can categorize Amazon disbursements like sales tax, seller fees, shipping and handling costs, and returns received separately allowing for a more accurate representation of your expense lines.
In addition to using double-entry accounting, entries are carried out on an accrual basis. Doing so ensures the focus remains on expenses and revenues as they are billed resulting in a better picture of your bottom line. It also makes it easier to adhere to Amazon’s pay schedule. This is opposed to cash basis accounting which can lead to Amazon sellers making wrong decisions.
Benefits aside, there is one major drawback with A2X’s financial reporting capabilities. Take, for example, the two-week schedule Amazon follows when transferring payments to sellers. Based on this pattern, A2X pulls in data every two weeks, however, standard accounting procedures follow a month-to-month schedule.
This means that once you request a report for, let’s say, the month of November, A2X will also extract and add the data for October and December (since it follows Amazon’s seller payment schedule). Consequently, when comparing Amazon’s monthly summary reports with A2X, the results can vary.
Pricing:
A2X for Amazon offers four different pricing plans to choose from:
The Mini package offers single marketplace functionality whereas every plan above that works with every other Amazon marketplace. Large sellers with order volumes exceeding the Standard 10k pricing can select a premium plan that includes personalized support and the ability to integrate A2X with up to 10 Amazon seller central accounts.
Strengths:
Weaknesses:
While all of the accounting and bookkeeping software mentioned here are great at what they do, unfortunately, they cater to one specific domain of Amazon selling. To become a successful seller, you need the help of a seller tool that does more than just bookkeeping—a tool capable of providing insights every step of the way.
A holistic Amazon seller toolkit consisting of 16 powerful features, Zonguru is the engine behind numerous successful FBA businesses across the globe. One of these tools is called MyProducts and it allows for a bird’s eye view of your inventory, calculates the cost of goods sold, and informs you when to replenish your stock.
What’s more, sellers can calculate their FBA fees to accurately determine profitability thanks to a free to download FBA calculator tool.
From product and niche research to Amazon PPC campaign optimization and everything in between, Zonguru is a reliable aid for your accounting and FBA seller needs!
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