Archive October 2018

How To Record Amazon Product Sales In QuickBooks Online

How To Record Amazon Product Sales In QuickBooks Online

This write up is perhaps the most simple, straightforward way of recording Amazon product sales in QuickBooks Online.  There are apps and other methods out there that may be better for you, especially if you deal in larger volumes of transactions.

The issue is that you have to create a separate step between the sales taking place on Amazon and the money being disbursed into your account because Amazon withdraws their fees prior to disbursing, so there is no way to accurately reflect the sales amount, and then really the secondary transaction of the processing expense by just entering the sales receipts into your main bank account.  This write up also assumes that you’re using QuickBooks Online to track inventory.

1. Create An Amazon Clearing Account

This is the first step!  You will want to create a separate bank account on your chart of accounts that is dedicated to Amazon sales and use it as a clearing account.  You’ll see the reasons for this in a second.

2. Great! You’ve Received A Sale On Amazon!

The seller notification email you receive from Amazon has all of the information in it that you need to accurately record this multi step transaction.

So you can see that the actual product sale was $66.29, with $5.49 paid for shipping.  And Amazon’s fees are a total of $11.76.  They will disburse to me $60.02 for this transaction.

3. Enter The Sales Receipt Into QuickBooks Online

Choosing to deposit this transaction into the Amazon clearing account, it allows me to accurately record the net margin that I made on this particular item so my books stay in order.  I’ve also added the shipping as a separate line item.  So the total deposit for this transaction is $71.78

4. Now Enter The Amazon Fees As An Expense

Now you will want to enter the Amazon fees as an expense that is being debited from the Amazon clearing account.  So in this case, I entered an expense for $11.76.

5. Now Review The Amazon Clearing Account on the COA

So upon reviewing the Amazon clearing account on my COA, I can see the balance in the clearing account is the amount of funds that Amazon states I will receive from this transaction.  At this time, I will leave it here for now(My income’s been recorded, the expense fees have been recorded-the P and L is fine).  Once Amazon disburses the funds into my bank account, I can then create a banking transfer between the Amazon clearing account and the account the money actually gets money deposited into, or I can create a journal entry.

Since Amazon and most e-commerce platforms disburse funds on a schedule and in batches rather than in individual transactions, by holding off until the money is disbursed into my account, I can add transactions to that future deposit seamlessly by using this method.

Hope that helps!

Keywords – The Basics of Digital Marketing

[thrive_headline_focus title=”Keywords – The Basics of Digital Marketing” orientation=”left”]

With the age of technology, the way businesses market themselves and their products is increasingly more complex and involved. As a result, many businesses are implementing both traditional marketing and digital marketing strategies.

Traditional marketing refers to print advertising such as brochures, flyers, and posters as well as paid advertisements in local publications, magazines, newspapers, and billboards. The traditional approach also relies on word of mouth referrals and local events, where businesses can build relationships with community members.

On the other hand, digital marketing leverages digital technologies to market products and services. The primary focus of digital marketing includes keywords, search engine optimization, email campaigns, social media management, and engaging customers to make online reviews. While email, social media, and reviews are more straightforward, keyword and SEO strategies can be daunting for businesses who are accustomed to more traditional strategies.

[thrive_headline_focus title=”What are keywords? How do you build an effective keyword strategy? ” orientation=”left”]

The goal of keyword marketing is to reach the right people at the right time – when they are desiring the product or service. An effective keyword strategy ensures that your website shows up when people search online for specific keywords or phrases. Below is a 5 step process that will get you well on your way to establishing an effective keyword strategy.

  1. Make a list of topics and themes that are relevant to your business and the products or services that you provide. Out of this list, create a list of words that you would like to test as possible head keywords. Head keywords are one to two words in length.
  2. Perform research on your head keywords. Search your keywords on Google.com and take a look at the related search terms that appear when you plug in a keyword. When you type in your word(s) and scroll to the bottom of Google’s results, you’ll notice some suggestions for searches related to your original input.
  3. Repeat steps one and two with long-tail keywords, longer phrases of 3+ words. While your head keywords will pull a larger audience, your long-tail keywords will likely draw your target audience as they are more tailored to what your business provides.
  4. After you have established a sizable list of head and long-tail keywords, check how your competitor rates for the same keywords. After testing your keywords, choose the ones that will diversify you from your competitors, so that you target a different segment of the market. SEMrush is a great resource to do this type of competitor research.
  5. Trim down on your keywords list even further with Google AdWords Keyword Planner and Google Trends. Without paying for an advertisement, you can gain access to your keyword search volume and traffic estimates, which will help you solidify which ones you want to keep. 

[thrive_headline_focus title=”Growth Business Consulting can help you establish and grow your digital marketing strategy.” orientation=”left”]

GBC develops customized digital marketing strategies based on our clients needs. We provide a​ variety of services including social media marketing, paid ads, analytical tools, keyword strategy, search engine optimization, and e-mail campaigns ​to drive sales. To learn more about our marketing services, contact us today!