How it runs for e-commerce brands and Amazon sellers
Your accountant reconciles each bank, card, PayPal and payment-service balance in QuickBooks Online or Xero, matches deposits to posted settlement journals, records conversion differences and lists every exception with an owner within days of the statement.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for e-commerce brands and Amazon sellers
- Deposits matched to specific Amazon settlements and Shopify payouts
- PayPal, Klarna and Afterpay balances reconciled as separate accounts
- Currency conversion differences posted at the rate actually received
- Shopify Capital and Amazon Lending deductions recorded as loan repayments
- Company cards for ads and apps reconciled with receipts by channel
The KPI that matters here
Every bank, card and payment-service account reconciled within 5 business days of the statement date.
E-commerce compliance notes
Marketplace facilitator laws
Every US state with a sales tax now requires marketplaces such as Amazon, Walmart, eBay and Etsy to collect and remit sales tax on third-party sales. The marketplace's collections appear in your settlement reports and must be recorded as tax collected and remitted by the facilitator, not as your liability. Some states still require registered sellers to file returns that report marketplace sales as exempt.
Sales-tax nexus on direct sales
Direct sales through Shopify, your own site or wholesale count toward each state's economic nexus threshold, commonly $100,000 in sales or 200 transactions in the current or prior year, and inventory stored in FBA warehouses can create physical nexus. We track sales by state monthly, flag thresholds approaching and prepare the workings for TaxJar, Avalara or your filing provider. Registration and filing decisions rest with you and your tax adviser.
VAT, GST and cross-border selling
Selling into the UK requires VAT registration once taxable turnover passes £90,000, or from the first sale for many overseas sellers, and EU distance sales can be reported through the One Stop Shop. Canadian GST/HST and Australian GST apply to imported low-value goods and to registered sellers. We prepare VAT and GST workings for your accountant or registered agent to file; we do not submit returns.
Inventory valuation and 1099-K reporting
Inventory must be valued consistently, including freight, duties and prep, so COGS and taxable income are right. Payment processors and marketplaces issue Form 1099-K for gross payments, which is reconciled to recorded sales so the figures your CPA reports agree with what the IRS receives. Tax preparation is support only; your firm reviews and signs.
E-commerce software we work in
More for e-commerce brands and Amazon sellers
Other services for e-commerce
Bank reconciliation in other industries
Frequently asked questions
Why does the Shopify payout not match the day's sales?
Shopify pays out net of processing fees, holds some orders for risk review, deducts Shopify Capital repayments and only includes Shopify Payments orders, while PayPal and other gateways pay separately. The accountant matches each payout to the payout report, posts the fees and deductions and reconciles the other gateways as their own balances, so the day's sales and the deposits agree in total.
How do you reconcile foreign marketplace payouts?
Amazon UK or EU settlements are posted in their own currency, and the deposit received through Amazon's currency converter or a service such as Wise is recorded at the rate actually received. The difference between the settlement value and the deposit is posted as a currency gain or loss. Balances held abroad are reconciled monthly as separate accounts.
Should PayPal be treated as a bank account?
Yes, PayPal holds a balance, charges fees, processes refunds and pays out on your schedule, so it is reconciled as its own account against the PayPal statement. Sales through PayPal are posted from the channel's settlement, fees are recorded from the PayPal report and transfers to the bank are matched on both sides. The same approach applies to Klarna and Afterpay.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.