How it runs for e-commerce brands and Amazon sellers
Work proceeds in monthly batches while the current month is kept up to date.
What is catch-up bookkeeping?
Catch-up bookkeeping is a one-time project that records and reconciles months or years of transactions that were never entered. The goal is a set of books where every bank, card and loan balance agrees with the statement and every period can be reported on. It ends when the backlog is current and reconciled, usually followed by ongoing monthly bookkeeping.
What we handle for e-commerce brands and Amazon sellers
- Historical Amazon and Shopify settlements posted in detail from reports
- Purchases, freight and duties recapitalized into inventory by period
- COGS rebuilt from units sold by SKU and channel
- Bank, PayPal and payment-service accounts reconciled month by month
- Sales tax collected separated by channel and state for each period
The KPI that matters here
Back months closed at the agreed pace with current-month settlements kept within 3 business days throughout.
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
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Catch-up bookkeeping in other industries
Frequently asked questions
Can historical Amazon settlements be recovered and posted in detail?
Yes, Seller Central holds settlement and date-range reports going back several years, and A2X or Link My Books can post historical settlements once connected. The accountant posts each one in detail, reconciles it to the deposit and separates marketplace-collected tax. Where a report is unavailable, the transaction and payment reports are used to rebuild the same figures.
How do you rebuild inventory when it was never tracked?
Purchases, freight and duties are recapitalized from supplier and forwarder invoices by period, units sold come from channel reports and the closing inventory is checked against the earliest FBA and 3PL counts available. Differences are analyzed and, where they cannot be traced, disclosed as an adjustment for your CPA rather than hidden in COGS.
Will the catch-up be ready for a tax return or a lender?
Yes, the finished catch-up includes reconciled accounts, inventory and COGS by period, sales tax collected by channel and state, 1099-K reconciliations to recorded sales and a list of open questions. Tax work is preparation support; your CPA reviews and signs. Pricing depends on volume and scope; get a custom quote within 1 business day.
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