Bookkeeping software for Amazon sellers
As an Amazon seller, keeping track of your bookkeeping is important to keep your business on track. Using a bookkeeping software is a great way to manage your finances.
What is bookkeeping?
Bookkeeping is when you record your financial transactions. This includes your purchases and sales. You’ll need to keep documentation of all your transactions, like receipts and invoices.
You can use your bookkeeping to do your accounting. Accounting is the process of using your records to report on your finances, and get useful information about the health of your business. The easiest way to do this is to use an accounting software which has automatic reporting, generated from your bookkeeping.
Bookkeeping for online sellers
Doing your bookkeeping can seem daunting at first, but with the right bookkeeping software you can keep the process simple. Here are some tips to help you get started:
Keep track of your cash flow
Knowing what money is coming in and going out from your business means you have a clear idea of how well your business is doing. Using reports from your accounting software to keep track is the easiest way to do this.
Know your profit from selling goods
Calculating how much profit you make from selling goods is key to running a successful business. Here are some figures you should get to know:
- The total cost of your goods sold, including production costs and packaging
- Whether you are covering shipping costs
- Fees for selling through platforms like Amazon
Once you know how much profit you’re making from each sale, you can calculate how much you will need to cover your other business expenses, like office costs, advertising and travel.
Expenses are money spent by a business in the hope of creating revenue. The best way to manage your expenses is with accounting software. This way, you can keep track of all your finances in one place. It’s also important to keep the receipts and documents relating to your expenses so you can present them to HMRC if necessary.
Prepare for tax
When running a business you will need to pay tax. Here are the most common taxes that might affect you:
- A self employed person needs to do a Self Assessment tax return
- A VAT registered business that needs to comply with Making Tax Digital
- A limited company that has to pay corporation tax.
Know which taxes affect you so you can put money aside to ensure you can pay. Knowing your deadlines means you can plan ahead, get your accounting done in time, and make the process as smooth as possible.
Know when to charge VAT
You can only charge VAT if your business is VAT registered. If your business has a turnover of over £85,000 a year then you must register for VAT with HMRC. But, if you want to register as a smaller business, you can if you wish.
If you are a VAT registered business you will need to comply with Making Tax Digital by submitting your VAT returns online through compliant software.
Use your balance sheet
Your balance sheet report will show your company’s financial position. It contains which assets are financed by equity, and which are liabilities. The sum of these will always be the same as the total assets. Checking in with your balance sheet will let you compare any changes in assets over the year.
Bookkeeping software for Amazon sellers
If you’re looking for a bookkeeping software to manage your online business, then Bokio is a great choice. We have lots of helpful features so you can record your transactions and documents easily, and automatically see reports on your business finances.
Bokio bookkeeping features
- Automatic bank feeds to import transactions from your bank, or PayPal account
- Upload receipts and expenses online, or on the go with our receipt capture app
- Record multiple transactions in one go, saving you time
- Invoicing software to create, send, track and record professional invoices
- Expenses software to manage expenses easily, and help you prepare for your Self Assessment tax return
- Automated reporting generated from simply doing your bookkeeping, so no more crunching numbers
- Manage supplier invoices with your accounting
- Making Tax Digital VAT Returns that are submitted in just a few clicks
We’ve made using Bokio really simple so you don’t have to be an expert to get your bookkeeping done. But, if you want to work with your accountant, or find one through Bokio, you can invite users to collaborate on your account.