Ultimate Guide to Personal and Business Finances for Amazon Sellers

Ultimate Guide to Personal and Business Finances for Amazon Sellers

Being your own boss and calling all of the shots is intoxicating! When you are your own boss, you can sneak in a nap during the day, you can work in your pajamas, and you are the envy of your cube-dwelling friends at the neighborhood cookout! They say to you, “Wow, you are so lucky, you can do what you want all day long!” “You don’t have to ask for time off!” “Your commute is just a few steps to your home office!”

As you agree sheepishly, you know there is much more to it than that, and some of you are even hiding the secret shame that your business and personal financials are a MESS. You know the real truth is that while running your own business is awesome, it is also very difficult.

Does this sound familiar? Are you tired of feeling shame and guilt because your finances are not in order? Fear no more, this article is a step-by-step guide to help you turn things around so you can feel in control!

5 Facts to Know About Deductible Expenses

5 Facts to Know About Deductible Expenses

Are you confused about business tax deductions?

A question commonly asked by Amazon sellers is what is deductible on a business tax return. The key to understanding what is and isn’t deductible is whether or not an expense is ordinary and necessary.

The IRS definition of “ordinary and necessary” is this: an ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business.

Please note: This post is a general guide for Amazon, eBay, and other inventory-based business owners and should not be used when preparing your tax return. It is very important that you hire a Certified Public Accountant (CPA) to prepare your tax return for you. You can certainly hire a bookkeeper to do your books, or you can do them yourself, but please be sure you budget adequately so you can hire a CPA to prepare and file your tax return for you.

How to Check Your Bookkeeper's Work (or Your Own)

How to Check Your Bookkeeper's Work (or Your Own)

Whether you are doing the bookkeeping for your Amazon business or you have hired someone to do it for you, it is important that you understand how to check the work for completeness and accuracy.

Having an e-commerce business is exciting, and with it comes a great deal of responsibility. Not only are you responsible for sourcing inventory, you are getting it to market by creating listings on eBay or Amazon, you are shipping in inventory to fulfillment centers if selling via FBA, you are responding to customer questions, possibly managing employees and/or Virtual Assistants, and keeping up with receipts and your accounting.

How to Fix an Accounting Mess in Your Amazon Business

How to Fix an Accounting Mess in Your Amazon Business

What happens if you feel overwhelmed by an accounting mess in your Amazon business? Do you feel stressed out and paralyzed with dread trying to “fix it?”

I know there are many of you in this situation, staring at the shoebox full of receipts, anxiety building as you get closer and closer to year-end and tax deadlines. You may not even have any idea of whether or not you are making a profit, which also adds to the stress.

The good news about your situation is next year will be different for you because you are going to implement an accounting system (right?) to avoid this is in the future. This is fixable, panic no more!

The bad news is you can't go back in time and do this year differently, but it won't be as horrible as you think to get things fixed. Just start where you are and work on it little at a time. If you start now you'll be ready in plenty of time to get your accounting records to your CPA to meet the April 15th tax filing deadline.

Why the Balance Sheet Matters

Why the Balance Sheet Matters

Why the balance sheet matters to YOU as an Amazon seller.

One disconnect we often see with Amazon sellers and their accounting is not understanding the relationship between cash, inventory, debt and net income.

Sellers can usually tell you how much money they have in their checking account and a pretty good guess at net income, but that's about it.

It's really important to see the big picture and understand how all of these components interrelate in order to manage your business effectively. Insert --> Balance Sheet. This important business tool will help you do just that.