Category Archives for "Bookkeeping"

Oct 31

How To Record Amazon Product Sales In QuickBooks Online

By zgraft

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!

Jul 10

Xero Management Report Walk Through

By zgraft

Xero’s Management Report is a great compilation and summary of the month (or other periods) end reports that most businesses need.

The report includes an executive summary, cash summary, income statement (profit and loss), balance sheet, aged receivables and an aged payables report.  This report can be published within the Xero company file, or exported as a pdf, Excel document, or Google Sheets.

How to generate a Xero Management Report For Your Company

1.From your Xero Dashboard, navigate to the ‘Reports’ tab.  You can see at this time that I do not have it saved as a favorite or starred report.

2.On the reports page, you’ll want to scroll down to the “Accounting” reports section.  You should star this so it shows up in your ‘Reports’ drop down box in the future.

3.When you select Xero’s Management Report, you’ll be taken to a screen with the Executive Summary.

4.This executive summary alone offers a lot of insight into your business’ performance over the last month, compared to the previous month, and you can even have that difference show up in a percentage column.  It’s a really fantastic snapshot of your business.

5.There are several customization options for your report.  For starters, you can choose which month you would like to see a report for using this drop down box. You can also choose which of the 6 reports (executive summary, cash summary, income statement  balance sheet, aged receivables and an aged payables report), and you can also choose to show the previous month’s numbers, it’s ratio compared with the chosen month, or no comparison at all.

6.Once you have made your selections, you have a few options to export the finalized report.  Your options include just publishing it within your company’s Xero file, or you could download it as a .pdf,, Excel spreadsheet, or a Google Sheets file.  You can also choose to edit the cover page, who the preparer was, date, or choose not to have a cover page at all.

I find that the Xero Management Report is a great compilation and other accounting platforms such as Quickbooks Online require you to compile these various reports manually.

Yes! We can help you with your Xero bookkeeping!  Contact us today to get started!

Jul 17

CRAZY great deal for Xero going on! Subscriptions for less than $1 a month!

By zgraft

YES!  Holy cow.  Xero is providing a ridiculous deal right now.  If you work with a Xero partner (such as us), you’re able to get a subscription for 12 months for less than $1.00 a month.  This discount is valid for all of their subscriptions including partner-exclusive products such as ledger and cashbook.

Contact us today to get started!