Amazon FBA
Running an Amazon business can present an entirely different set of challenges from other small businesses.
I have run my own Amazon FBA business since 2018, and the main reason I have thrived is because I have optimized the following.
Statement Reconcilliation
Amazon produces a statement with rows and rows of data (thousands, if your sales are high), and all of this data needs to net out to the cash deposit they send your bank. I can easily convert that data into information. The result is a table that looks like the one on the right. I can take this information and create a journal entry. This ensures you have accurate financials.
Chart of Account Optimization for FBA
Dumping all of your revenue into the SALES bucket just doesn't cut it. You likely have different product lines, revenue streams and variation within those products. By planning ahead and optimizing your chart of accounts, there is no guesswork or drilling down needed. Doing this with your COGS is also crucial so you can see, at a glance, if your cost structure makes sense. The Amazon statement reconciliation process easily produces information in the format below, when your chart of accounts are optimized.
Month End Close
At the end of the month, we make adjustments to make sure you have an accurate financial picture.
For example, you have storage and advertising fees that are paid in the following month. We have to do an accrual adjusting entry. We also take into account how much of your inventory sold, and how much is remaining. Based on cost variance, we use FIFO method to correctly account for you inventory costs. If these things are not done, its not only lazy... It's providing you with incorrect financial information, which provides a misleading measure of performance of your company.
Other
Check out the WHAT WE DO page to see other services that apply to all businesses, not just Amazon.