Amazon Seller Bookkeeping: 5 QuickBooks Setup Steps for Accurate FBA Accounting

As an Amazon FBA seller, accurate bookkeeping isn’t just about tax compliance – it’s about understanding your true profitability and making data-driven decisions. After helping hundreds of Amazon sellers set up their books, we’ve developed a foolproof system for QuickBooks that captures every crucial detail of your FBA business.

Why Proper QuickBooks Setup Matters

Before diving into the setup steps, consider this: 73% of Amazon sellers we’ve worked with were missing critical costs in their bookkeeping, leading to profit miscalculations of 15-25%. A proper QuickBooks setup ensures you’re tracking everything accurately from day one.

The 5 Essential QuickBooks Setup Steps for Amazon Sellers

Step 1: Create a Structured Chart of Accounts

Your Chart of Accounts is the foundation of accurate FBA bookkeeping. Here’s the essential structure:

Income Categories:

• Amazon FBA Sales
• Amazon MCF Sales
• FBM Sales
• Refunds & Returns
• Shipping Credits

Cost of Goods Sold (COGS):

• Product Costs
• Freight & Duties
• Prep Center Costs
• Amazon Referral Fees
• FBA Fees
• Storage Fees
• Long-Term Storage Fees

Operating Expenses:

• PPC Advertising
• Software Subscriptions
• Professional Services
• Bank Fees
• Currency Exchange Fees

Step 2: Set Up Amazon Payment Integration

Proper integration ensures accurate daily sales tracking:

1. Connect your Amazon Seller Central account
2. Map settlement reports to correct accounts
3. Configure automatic daily sync
4. Set up proper categorization rules

Pro Tip: Create separate income accounts for each marketplace if selling internationally.

Step 3: Configure Inventory Tracking

Accurate inventory tracking is crucial for FBA profitability:

• Enable inventory tracking in QuickBooks
• Set up inventory assets account
• Create purchase orders for stock orders
• Track landed costs per unit
• Set up inventory adjustments for damages/losses

Step 4: Establish Automated Rules

Save time and ensure consistency with these automated rules:

• Amazon fee categorization
• PPC expense tracking
• Regular supplier payments
• Storage fee allocation
• Return processing

Key Automation Tip: Create rules to automatically split Amazon settlements into the proper revenue and fee categories.

Step 5: Set Up Essential Reports

Configure these crucial reports for FBA success:

1. Profit & Loss by SKU
2. Cash Flow Forecast
3. Inventory Valuation
4. Fee Analysis
5. Return Rate Tracking

Common Mistakes to Avoid

1. Mixing Personal & Business Expenses

• Create separate accounts
• Use dedicated business cards
• Track owner’s draws properly

2. Incorrect Fee Allocation

• Don’t lump all Amazon fees together
• Split referral fees from FBA fees
• Track storage fees separately

3. Missing Important Costs

• Include prep center costs in COGS
• Track PPC at the SKU level
• Account for return costs

Next Steps for Success

After completing these setup steps:

1. Review your settings monthly
2. Reconcile accounts regularly
3. Keep supplier information updated
4. Track inventory adjustments weekly
5. Monitor cash flow daily

Need Help?

Setting up QuickBooks correctly is crucial for your Amazon business’s financial health. While this guide covers the essentials, every business has unique needs. If you need personalized help, our team at Ledger to Launch specializes in Amazon seller bookkeeping.