What bookkeeping mistakes do Amazon sellers make most often?
The most expensive mistake Amazon sellers make is treating Amazon’s two-week disbursement as their revenue. That deposit isn’t your sales total. It’s what’s left after Amazon takes referral fees, FBA fees, storage fees, advertising costs, and any refunds or chargebacks. If you’re booking that disbursement amount as revenue, your books are wrong from the start and your profit margins are fictional.
Not tracking inventory costs properly is the second major issue. You can’t calculate true profit without knowing what you paid for the products you sold. Cost of goods sold should match the units sold in each period, not just when you bought inventory. Running on a cash basis where you expense inventory when you buy it rather than when you sell it gives you wildly inaccurate profit numbers. This is especially problematic during Q4 when you’re stocking up for holiday sales but haven’t sold the product yet.
Ignoring the Amazon fee breakdown hurts decision-making. Amazon charges referral fees, fulfillment fees, storage fees, advertising fees, and various other charges. Each one affects margin differently. If you’re not tracking these separately in your e-commerce bookkeeping, you can’t identify which fees are eating into profit or whether a product is actually worth selling after all costs.
Reconciliation problems happen when sellers don’t match Amazon settlement reports to their actual transactions. Amazon’s reports are confusing. They include adjustments, reimbursements, and timing differences that don’t match a simple revenue minus fees calculation. Most sellers just book the deposit and move on, which leaves money and accuracy on the table.
Multi-state sales tax is a compliance landmine many sellers ignore. Storing inventory in Amazon’s FBA warehouses creates nexus in those states, meaning you likely owe sales tax in places you’ve never set foot in. Amazon collects and remits in most states now, but the rules vary and the liability still falls on you if something goes wrong.
The final common mistake is mixing personal and business finances. Using one credit card for inventory purchases and personal expenses makes it nearly impossible to track actual business costs. Open a separate business account and run everything through it.
These mistakes compound over time. Bad data for one month becomes bad data for twelve months, and by tax time you’re either overpaying because you can’t prove your deductions or underpaying because you didn’t realize you owed more. A Scottsdale bookkeeper who understands Amazon’s fee structure and inventory timing can set up your books correctly from the start. That saves money and stress compared to cleaning up a mess later.
Full-Service Bookkeeping for Greater Phoenix
The Next Step:
A Quick Conversation
Tell us about your situation. We'll listen, ask a few questions, and give you a clear price to handle the work.
More Questions
How do I categorize business transactions correctly?
Consistency matters more than perfection. Pick logical categories that match your chart of accounts, apply them the same way every time, and keep your future self and your accountant in mind when deciding where something belongs.
Read answerDo Arizona businesses have special bookkeeping requirements?
Arizona's Transaction Privilege Tax creates unique bookkeeping needs because rates vary by city. Tracking TPT by jurisdiction and filing on the correct schedule are the main Arizona-specific requirements.
Read answerHow do I handle accounts payable efficiently?
Efficient accounts payable comes down to centralizing invoice intake, coding bills as they arrive, and batching payments on a set schedule. Most inefficiency comes from chasing paper, scrambling at the last minute, and paying bills one at a time.
Read answerDo I need to collect sales tax for online sales in Arizona?
Most Arizona businesses selling online need to collect Transaction Privilege Tax on taxable sales. Out-of-state sellers have the same obligation once they exceed $100,000 in annual Arizona sales.
Read answerWhat should I expect during a bookkeeping cleanup project?
A cleanup starts with an assessment to understand how far behind things are. Expect to provide bank statements, software access, and any records you have. You'll get regular questions during the process, and timeline depends on how much needs fixing.
Read answerCan I find a bookkeeper near me who understands retail?
Yes, but retail expertise varies widely. Look for someone who knows inventory costing, POS system integration, and Arizona transaction privilege tax. Generic bookkeeping misses the details that actually matter for running a retail business.
Read answer