Why QuickBooks Online for Amazon Sellers?
QuickBooks Online is the gold standard for Amazon seller accounting because:
- Native Amazon integration: Official app syncs settlement data automatically
- Multi-channel ready: Track multiple platforms (Amazon, Shopify, eBay) in one system
- Cloud-based: Access from anywhere; automatic backups
- Mobile app: Track expenses on the go
- Tax-ready: Generates all reports needed for tax filing
- Scalable: Works for $50K or $5M revenue
QB Online Plans & Which to Choose
| Plan | Cost/Month | Best For | Key Limits |
|---|---|---|---|
| Self-Employed | $15 | Solo seller (no employees) | 1 user; basic features |
| Essentials | $30 | Growing sellers ($100K+) | 3 users; unlimited invoicing |
| Plus | $60 | Established sellers ($500K+) | 5 users; time tracking; projects |
| Advanced | $180+ | Enterprise (multi-million) | Unlimited users; custom automations |
Recommendation for Amazon sellers: Start with Essentials ($30/month). Gives you enough functionality and user seats if you hire help.
Step-by-Step QB Online Setup
1Create QB Online Account
- Go to quickbooks.intuit.com
- Click "Start Free Trial" (30 days free)
- Enter email and create password
- Choose business type: "Online seller" or "Retail business"
- Enter company name (e.g., "YourName LLC")
- Select industry: "Other" (Intuit doesn't have Amazon-specific)
- Fiscal year: Calendar year (Jan 1 - Dec 31) is standard
2Basic Company Information
QB asks for company info. Fill in accurately:
- Legal business name: Exactly as on business registration/tax forms
- Legal address: Your physical business address (or home if home-based)
- EIN: Your business tax ID (optional but recommended)
- Email: Business email for correspondence
3Customize Chart of Accounts
QB creates default accounts. Delete/rename to match Amazon selling:
- Delete: "Loan account" (not needed)
- Keep & rename key accounts (see next section)
- Add Amazon-specific accounts
4Connect Bank Account
- Go to Accounting → Chart of Accounts
- Click "+ New" button
- Select "Bank" account type
- Name: "Bank - [Institution Name] - [Last 4 digits]"
- Save and link to your actual bank account
Setting Up Your Chart of Accounts
Asset Accounts (What You Own)
- Bank - Business Checking (link to your actual bank account)
- Bank - Business Savings (if separate account)
- Inventory - Raw (products awaiting shipment to FBA)
- Inventory - FBA (products in Amazon fulfillment centers)
- Amazon Reserve (cash held by Amazon)
Liability Accounts (What You Owe)
- Accounts Payable - Suppliers (invoices from suppliers)
- Credit Card - Business (link to actual credit card if used)
- Sales Tax Payable (if collecting sales tax)
Income/Revenue Accounts (Money In)
- Amazon FBA Revenue (gross sales from FBA)
- Amazon FBM Revenue (if using FBM)
- Shopify Revenue (if multi-channel)
- Other Revenue (direct sales, etc.)
Cost of Goods Sold (COGS)
- COGS - Product Cost (supplier invoices)
- COGS - Freight & Tariffs (international shipping)
- COGS - Packaging & QC (materials & inspection)
Operating Expenses - Amazon-Specific
- Amazon Referral Fees (commission taken by Amazon)
- Amazon FBA Fulfillment Fees (per-unit fulfillment)
- Amazon Storage Fees (monthly/long-term storage)
- Amazon Removal Fees (inventory removal costs)
Operating Expenses - Marketing & Advertising
- Amazon Ads (PPC) (sponsored product campaigns)
- Advertising - Google Ads (external advertising)
- Advertising - Social Media (Facebook, Instagram, TikTok)
Operating Expenses - Business Subscriptions
- Software - QuickBooks
- Software - Inventory Management (Stitch Labs, etc.)
- Software - Keyword Research (Helium 10, Jungle Scout)
- Software - Email Marketing (Mailchimp, etc.)
Operating Expenses - Professional Services
- Accounting & Bookkeeping
- Legal Services
- Consulting & Coaching
Operating Expenses - Miscellaneous
- Office Supplies
- Equipment (Under $2,500)
- Insurance
- Shipping & Postage (if FBM)
Total accounts for average seller: 30-40 accounts (more is okay, but don't over-segment)
Installing the Amazon Integration
Step 1: Access QB Apps
- In QB Online, go to Apps menu (left sidebar)
- Click "Find Apps"
- Search "Amazon" or "Seller Central"
- Select "Amazon by Intuit" (official app)
Step 2: Authorize Amazon
- Click "Install" on Amazon app
- You'll be redirected to Amazon Seller Central login
- Log in with your Seller Central credentials
- Amazon asks for permission to share settlement data with QB
- Click "Authorize" to confirm
Step 3: Map Amazon Accounts
- Select which Amazon seller accounts to sync (if multiple)
- Map to QB bank account (the one receiving Amazon deposits)
- Choose sync frequency (automatic daily recommended)
- Save settings
Step 4: First Sync
QB automatically pulls your Amazon settlement history (typically last 90 days). This creates journal entries for:
- Sales revenue
- Referral fees
- FBA fulfillment fees
- Bank deposits
What the Integration Tracks
- ✓ Daily sales by product
- ✓ Referral fees (by category %)
- ✓ FBA fulfillment charges
- ✓ Storage fees
- ✓ Refunds & chargebacks
- ✓ Reserve held amounts
- ✓ Net payout to bank
⚠️ Important Note on Integration
The Amazon app is good but not perfect. After initial setup:
- Review first month's data carefully
- Verify referral fees calculated correctly
- Ensure refunds are properly recorded
- Reconcile to Amazon Settlement Report manually
- Catch any missed or double-counted transactions
Connecting Your Bank Account
Linking Your Bank
- In QB, go to Accounting → Chart of Accounts
- Find your bank account (e.g., "Bank - Chase - 5678")
- Click "View Register" (three dots menu)
- Click "Link Account"
- Select your bank from the list
- Log in with online banking credentials
- QB imports last 90 days of transactions
Automatic Transaction Matching
Once linked, QB automatically imports:
- Amazon deposits: Matched to Amazon payout
- Supplier payments: Matched to bills
- Credit card payments: Matched to payments
Monthly Bank Reconciliation
- First day of month, go to Accounting → Reconcile
- Select account to reconcile
- Enter ending balance from bank statement
- Mark off transactions that appear on statement
- Account for outstanding checks/deposits
- Click "Finish"
Do this monthly: Catches errors early; ensures accuracy
Best Practices for QB Setup
✓ Use consistent naming: All accounts should be clearly named (e.g., "Amazon Referral Fees" not just "Fees")
✓ Create classes (optional but helpful): Tag transactions by channel (Amazon, Shopify, etc.) for profitability by platform
✓ Set up monthly reminders: Reconcile on same day each month (1st or 28th)
✓ Archive old accounts: Delete test accounts; keep only active ones
✓ Add description to transactions: Future-you will appreciate knowing why transactions occurred
Common QB Setup Mistakes
- Not separating COGS from operating expenses: Results in inflated profit. Use distinct accounts.
- Mixing personal and business: Complicates reconciliation. Use only business account.
- Too many accounts: Creates confusion. Aim for 35-45 total; consolidate similar items.
- Not reconciling monthly: Errors compound; harder to find mistakes
- Skipping Amazon integration: Manual entry is time-consuming and error-prone
- Not tracking by ASIN: QB can't easily track profit per product (need external tool for that)
- Paying for upgrades you don't need: Essentials tier is usually sufficient
QB Online vs Xero vs Wave
| Feature | QB Online | Xero | Wave |
|---|---|---|---|
| Amazon Integration | ✓ Official app | ✓ Official app | ✗ Manual only |
| Cost (Basic) | $30-60/month | $13/month | $0 (free tier) |
| User Limit | 3-5 users | Unlimited | 3 users |
| Mobile App | ✓ Full featured | ✓ Full featured | ✓ Basic |
| Best For | Amazon-only sellers | Multi-channel sellers | Ultra-budget startups |
Recommendation: QB Online for Amazon-focused sellers. Xero if you plan to scale multi-channel. Wave if you have tight budget (sacrifice some automation).
After Setup: Monthly Routine
- Day 1-5: Reconcile bank account
- Day 5-10: Download Amazon Settlement Report; verify QB matches
- Day 10-15: Categorize uncategorized transactions
- Day 15-20: Record any manual entries (non-automated expenses)
- Day 20-25: Run P&L report; analyze for anomalies
- Day 25-28: Close month; verify all accounts balanced
Budget 2-4 hours per month for bookkeeping if doing it yourself. Hiring someone: 5-10 hours/month at $15-25/hour = $75-250/month.
Summary: QB Setup Checklist
✓ Account Creation: Self-Employed or Essentials tier selected
✓ Chart of Accounts: 35-45 accounts created and named clearly
✓ Bank Connection: Business bank linked to QB; auto-sync enabled
✓ Amazon Integration: Seller Central connected; settlement data syncing
✓ Monthly Routine: Reconciliation and close process documented
Result: Accurate, automated accounting ready for tax filing and business analysis