How it runs for e-commerce brands and Amazon sellers
A second accountant reviews the package through Two-Tier Review before you see margin by channel.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for e-commerce brands and Amazon sellers
- Sales cut off at month end with settlements spanning the period split
- COGS posted from units sold and inventory reconciled to FBA and 3PL reports
- Deferred revenue for pre-orders, subscriptions and gift cards updated
- Sales tax collected reconciled by state and channel
- Accruals for unbilled freight, duties and advertising booked
The KPI that matters here
Close package delivered within 8 business days of month end with inventory within 2% of counts.
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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Frequently asked questions
How do you handle a settlement that spans two months?
The settlement journal is split at the month end using the transaction dates in the settlement report, so sales, refunds and fees land in the month they occurred. A2X and Link My Books support this split when configured. The deposit still reconciles to the full settlement, and the month's revenue reflects orders shipped, not the payout date.
What if I only count inventory once a quarter?
Monthly FBA and 3PL reports give a system count each month, which the accountant reconciles to the ledger and adjusts within a tolerance you set. The quarterly physical count then corrects any drift, with the adjustment analyzed by SKU. Over time the monthly variance shrinks as receiving and shrinkage issues are found and fixed.
Why does sales tax need reconciling at month end?
Because marketplace-collected tax, tax you collected on direct sales and tax remitted to states through TaxJar or Avalara all move through the ledger, and the liability must equal what you actually owe. The accountant reconciles collected tax by state and channel to the filing data each month, so the return your provider files matches the books.
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