Do you ever wonder why it is so difficult to start and maintain an accounting system for your Amazon business?
It is difficult because sellers often don’t know where to start. They dive right in without understanding what they are doing and think they can figure it out on the fly. They begin with the generic Chart of Accounts that comes with QuickBooks Online (“QBO”) or other accounting software, and then start clicking and doing without a plan or map. This is how messes are made, I have seen it happen many times. This would be like getting in your car to drive from Georgia to Alaska with no map or GPS – sure, you could probably do it, but you’ll likely get lost, you may have to backtrack, you will have stress that is avoidable, and it will take you longer.
To avoid getting lost, you need a customized Chart of Accounts, specific to your Amazon business. This is your map so you know what account each transaction belongs to which helps create a more meaningful picture of your business’s performance. While you could use the “canned” Chart of Accounts that comes free with most accounting software programs, that generic Chart of Accounts creates problems, stress, and confusion as sellers try to remember what types of transactions are associated with each type of account. Less stress and complication will result in more time to pursue important things to grow your business.