Choosing the Right Accounting Software for Amazon FBA Sellers

As an Amazon FBA seller, having the right accounting software is crucial for managing your business finances, tracking FBA fees and sales, and understanding overall profitability.

The right solution tailored for ecommerce helps minimize tax headaches, provides financial visibility across your company, and integrates with other business systems.

In this guide, we’ll compare the key accounting platforms available for FBA sellers and highlight the advantages and limitations of each.

Cloud Accounting Systems

Cloud-based accounting software is accessed via web and mobile apps. Benefits include:

Advantages

• Access financial data from anywhere on any device.
• Real-time synchronization across connected apps.
• Easy to scale as your business grows.
• Automatic updates without local installation.
• Often lower startup costs compared to installed systems.

Limitations

• Reliant on consistent internet access.
• Subscription fees, though generally affordable.
• Less customizable than installed solutions.

QuickBooks Online

• Very popular with many accountants familiar with QuickBooks.
• Plans from $20/month. Tiered pricing based on features needed.
• Intuitive interface but takes time to customize.

For ecommerce sellers fulfilling orders via Amazon FBA, having a solid understanding of your business finances is crucial. QuickBooks Online is an excellent cloud accounting platform tailored to help FBA sellers manage their books and taxes.

Pricing and Plans

QuickBooks Online offers several tiered pricing plans to match needs. Simple Start is just $20/month for basic accounting. The Plus plan at $75/month supports up to 10 users and includes inventory tracking. Advanced features like project costing and workflow automation incur add-on fees. Overall, QuickBooks plans are affordably priced for lean FBA startups through established mid-market sellers.

Ease of Use

The interface is intuitive with common accounting workflows built-in, allowing getting started quickly. However, fully optimizing the platform to your processes takes some upfront time investment. QuickBooks offers numerous self-help resources like setup guides, videos, and community forums to aid with configuration and learn best practices. For hands-on help, QuickBooks ProAdvisors can provide one-on-one training tailored to FBA use cases.

Features and Functionality

QuickBooks Online covers all the accounting basics like invoicing, expense tracking, inventory management, and cross-platform reporting. The FBA-focused features make it easy to import Amazon settlement sheets to track fees and sales. Cost of goods sold and profitability reporting quickly reveals your top products. Automatic bank imports, receipt capture, and mileage tracking speed up data entry. An open API allows connecting other business apps to sync key data.

Mobility and Accessibility

The cloud solution provides real-time financial data access on your computer, tablet or phone. Changes sync immediately across users and connected platforms like inventory and order management. This enables collaborating with your accountant remotely. Unified visibility and anywhere access help make timely, informed business decisions.

Should You Use QuickBooks Online for FBA?

For most FBA sellers, QuickBooks Online handles essential accounting and tax workflows while connecting data flows across your ecommerce ecosystem. The platform scales from bootstrap entrepreneurs through established multi-channel brands as your needs grow via add-ons. While not the cheapest option, the wealth of features and seamless financial control justify QuickBooks Online as an investment into your FBA success.

FBA Features

• Sync FBA settlement reports and fees.
• Track costs of goods sold and profitability by product.
• Reconcile inventory counts between FBA and accounting.

Xero

• web and mobile access.
• Plans from $12/month. Volume discounts available.
• Over 500 app integrations.

Juggling the finances of an Amazon FBA business brings plenty of accounting headaches. An solution like Xero provides affordable and straightforward financial management tailored for ecommerce sellers.

Pricing and Plans

Xero offers tiered pricing plans to suit different business sizes and needs. The Early plan starts at just $12/month for up to 5 invoices and quotes. Growing businesses can upgrade to the Established plan at $60/month supporting up to 500 contacts and sales transactions. Volume discounts are available for larger sellers. Overall, Xero delivers robust accounting capabilities at competitive monthly rates.

Ease of Use

The user interface is clean and intuitive enough for small business owners new to managing their books. While Xero doesn’t automate workflows, it also avoids overly complex configurations. The platform focuses on providing accessible tools for tracking income, expenses, account reconciliation, and generating key financial reports. For advanced customizations, Xero offers certified advisors to optimize setup.

Features and Functionality

Xero handles all core accounting activities from invoicing clients to paying vendor bills. It automatically imports bank transactions and allows uploading expense receipts via mobile. Inventory management provides insights into product profitability. A key feature for FBA sellers is the ability to connect Amazon Seller Central to import settlement sheets and track FBA fees. This streamlines reconciling your accounts and understanding true profit margins.

Mobility and Accessibility

The cloud-based system enables securely accessing financial data and generating reports anytime, from any device. This allows collaborating with your accountant remotely. Changes sync across connected apps in real-time providing up-to-date visibility. Xero also offers over 500 integrations with tools like payment processors, POS systems, CRMs and more.

Should You Use Xero for FBA?

For lean FBA businesses, Xero provides an affordable cloud accounting solution to control finances without breaking the bank. The platform scales from early startups through established sellers needing multi-currency support. While not as feature-rich as some competitors, Xero focuses on the essentials for ecommerce accounting done right.

FBA Features

• Import FBA settlement reports.
• Connect Amazon Seller Central to sync financial data.
• Add notes and attach FBA documents like invoices.

Installed Accounting Software

Installed solutions are deployed on local company computers and servers. Better for:

Advantages

• Access data and generate reports without internet connectivity.
• Highly customizable to unique workflows.
• Perpetual licensing avoids ongoing fees.
• Leverages tailored on-premise infrastructure.

Limitations

• Large upfront costs for software and infrastructure.
• IT administration required for managing servers.
• Access limited to specific computers hosting the software.
• New versions require manual upgrades.

QuickBooks Desktop

• Small business focused features and workflow.
• Perpetual license around $300. Additional user fees.
• On-premise access minimizes reliance on internet.

Managing an Amazon FBA business comes with no shortage of financial data to track. QuickBooks Desktop provides feature-packed accounting software well-suited for ecommerce sellers who prefer an installed, on-premise solution.

Pricing and Plans

QuickBooks Desktop uses a perpetual license model rather than subscriptions. The Pro plan designed for small businesses costs around $300 for the software license. Additional fees apply for multiple user licenses. More advanced Enterprise plans are available with capacities to support larger product catalogs and transaction volumes. Overall, QuickBooks Desktop offers competitive upfront pricing.

Ease of Use

The interface will feel familiar to users upgrading from QuickBooks Online or the older QuickBooks Pro. It provides many of the same workflows for invoicing, paying bills, tracking expenses, and running financial reports tailored for smaller businesses. Users with QuickBooks experience will find it easy to adapt. Support resources like documentation, in-product guides, and webinars make it accessible for new users as well.

Features and Functionality

QuickBooks Desktop helps organize the finances of your FBA business seamlessly. It syncs with bank accounts to import transactions automatically. The Amazon integration downloads settlement reports from Seller Central to track fees and sales. Inventory management provides insights into profitability by product line. Purchase orders, billing, and reporting round out the feature set to manage cash flow and understand margins.

Accessibility and Mobility

Since it’s an installed solution, QuickBooks Desktop runs locally on your office computers and servers. Remote access requires a VPN connection into your network. However, you can email and export reports securely for accessing financial data from anywhere when needed. Lack of direct mobile access may limit real-time collaboration with your accountant.

Should You Use QuickBooks Desktop for FBA?

For sellers who value robust accounting tools and the ability to fine tune workflows specific to their business, QuickBooks Desktop is a great choice. It delivers leading features and customization better suited for established sellers with more complex needs and existing network infrastructure to support it.

FBA Features

• Track FBA proceeds, commissions, and reimbursements.
• Reconcile inventory quantities with FBA reports.
• Classify income and expenses from FBA settlements.

Sage 50cloud Accounting

• Mid-market accounting with more advanced capabilities.
• Perpetual license around $1,175. Price per user.
• Customizable reports and invoicing.

Expanding Amazon FBA businesses eventually reach a point where more sophisticated accounting software becomes necessary to stay financially organized. Sage 50cloud Accounting provides feature-rich tools tailored for mid-market ecommerce sellers.

Pricing and Plans

Sage 50cloud uses on-premise installation with a perpetual license fee, starting around $1,175 per user. Different plans support additional inventory items and transaction volumes. Support plans for training and configuration incur added costs. Overall, Sage 50cloud is priced appropriately for established FBA sellers based on advanced capabilities.

Ease of Use

The interface provides in-depth accounting tools across modules like Accounts Payable, Accounts Receivable, Inventory, and Banking. However, the extensive configuration options result in more complexity. New users should budget more time for setup and training compared to entry-level software. Support packages and customization by ProAdvisors is recommended to streamline workflows.

Features and Functionality

Sage 50cloud delivers sophisticated finance tools specialized for mid-market ecommerce businesses. Granular tracking for payables/receivables, robust inventory cost management, and multifaceted reporting allow detailed financial insights. The Amazon integration syncs FBA settlements for tracking commissions, reimbursements, and product line profitability. Order management connectors automate key data flows.

Accessibility and Mobility

As an installed solution, Sage 50cloud runs on local company servers and PCs, restricting remote access. Users can connect via VPN or terminal services to access data externally if needed. Lack of direct mobile functionality limits real-time collaboration across the business, requiring batch exporting of reports.

Should You Use Sage 50cloud Accounting for FBA?

For established FBA sellers experiencing growing pains managing their books, Sage 50cloud warrants consideration. The extensive features and customization capabilities justify the upfront licensing and IT infrastructure costs to scale a mid-market financial operation. Just be ready to invest in training and optimization to maximize value from the depth of options.

FBA Features

• Import and code FBA settlement reports.
• Connect Sage to Amazon Seller Central.
• Set up profit centers for FBA product lines.

Software Comparison Table

Software	Pricing	Pros	Cons	FBA Features
QuickBooks Online	$20+/month	Intuitive interface Popular with accountants	Monthly fees Less customization	Sync FBA data Track CGS and profitability Reconcile inventory
Xero	$12+/month	Affordable Mobile and web access Many integrations	Monthly fees Less customizable	Import FBA reports Sync financials Add FBA notes/docs
QuickBooks Desktop	~$300 perpetual license	On-premise access Familiar workflows	Upfront costs IT administration	Track FBA fees and payments Reconcile inventory quantities Classify FBA transactions
Sage 50cloud	~$1,175 perpetual license	Advanced features Custom reporting	Upfront costs IT oversight Steep learning curve	Import FBA reports Connect Sage and Amazon Seller Central Set up FBA profit centers

Final Recommendations

Carefully consider your business’ stage, accounting needs, and appetite for software expenses. Match the accounting platform capabilities to your current requirements and future goals.

Cloud solutions allow for easier startup while installed systems permit customization and avoid recurring fees. Weigh the tradeoffs to pick the best accounting fit. The right software provides the features and integration needed to optimize financial oversight as your FBA business grows.