Selling on Amazon? Here’s the App That Makes Accounting Easy
Any product-based business will tell you that Amazon is awesome.
It’s fast and convenient – and it’s a ready-made audience of eager buyers who can find your products in seconds.
But what they don’t tell you is just how complicated it can get when you’re crunching the numbers.
When you’re selling through Amazon, you’ve got to account for fees, refunds, bulk transactions, and international currencies.
And when those numbers hit your accounting software, it can be a complete mess.
Luckily, there’s a quick and easy answer for any business that’s new to Amazon or growing fast – a simple app that bridges the gap between your sales and your accounts.
It’s called A2X. And it could say you hundreds of hours (and errors!) on your Amazon accounting.
How does A2X work?
A2X stands for ‘Amazon to Xero’ – and it does exactly what it says on the tin.
It’s an integrated app that connects your online marketplace to your accounting software. It takes the information from your Amazon sales, and translates it into something that your accounting software can easily digest.
So what does it actually do with the connection? Here’s a quick summary of the A2X process:
1. A2X sits in the middle between Amazon and Xero, sharing data using secure feeds.
2. It gathers and sorts your transactions from Amazon – including all the complicated fees and refunds – and posts them to your Xero account as organised summaries.
3. Your transactions are assigned to financial periods in Zero, so you can easily reconcile your payments with complete accuracy
Why should I use A2X?
Linking up your sales with your accounts sounds impressive. But what does that really mean in terms of how you run your business?
Here are three of the main ways A2X can make things easier:
1. Automation is a life-saver
If you’ve spent any time working the books from your Amazon sales (and especially if you’re a high-volume seller), you’ll know just how time-consuming it can be.
In most cases, you need to:
- Manually record every transaction (or groups of transactions)
- Manually categorise every transaction or commission
- Adjust your numbers to account for Amazon fees and refunds
- And check your bank statements against the sales you’ve made.
But with an automated app like A2C, you simply don’t have to.
A2X gathers your sales directly from Amazon. It sorts and categorises them, makes adjustments for fees and refunds, and posts them directly into your Xero account as the numbers you need to see.
So what does that mean for your business?
It means no manual entry, no user errors – and more free time for you to push your marketing, increase your sales, and manage the daily running of your business.
2. A2X gives you real numbers
When Amazon pays you for the sales you’ve made, it usually gives you a lump sum that covers a range of transactions.
By the time the money comes to your business, Amazon has already taken its fees from the total. And when you come around to creating your invoices in Xero, it can be a struggle to find the right numbers – and to match it to the payment on your bank statement.
But when you use A2X to connect Amazon to your accounting software, those fees are automatically accounted for, giving you an easy way to compare the numbers and match the right invoice to the right payments.
(And as an added bonus, A2X can take huge numbers of different Amazon sales and bunch them all together under one transaction – which is a huge help when you’re trying to avoid Xero’s monthly transaction limit.)
3. A2X does more than just ‘A2X’
A2X stands for ‘Amazon to Xero’. But don’t let the name fool you.
What started as an app to connect Amazon with Xero has grown into a multi-purpose integration – connection sales from Amazon, Shopify, and Walmart to the accounts in Xero and QuickBooks.
And if you’re running a business with more advanced stock control, you can even link it up to your integrated inventory software (such as Cin7, DEAR, or Unleashed).
With A2X connected to your inventory software, you’ll be able to:
- Track your costs of goods sold and your gross margins
- Reconcile your available stock after a stock series of new orders
- And create reports to show your available stock – as well as their values and locations.
Ready to make selling simple?
A2X is a powerful and easy-to-use tool that can make life easier for any product-based business that sells through Amazon.
But if your business has a huge range of complex products, A2X might not be enough on its own.
If you’re struggling to keep up with managing your warehouses, delivering your goods, or dealing with bills of materials, book a free call with one of our experts – and we’ll show you everything an integrated inventory app can do for your business.
Click here to download the PDF version of ‘Selling on Amazon? Here’s the App That Makes Accounting Easy’
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