How to Find Amazon Seller Profit Without Using Accounting Software

Amazon seller profit is vital for all businesses but for small and midsized Amazon e-commerce businesses it's a matter of survival. Proper bookkeeping helps you track expenses, manage cash, and keep a record of all transactions for tax preparation.

Whether you're a veteran eCommerce seller expert or a newbie you need to be channelized Bookkeeping system is in place to track the health of financial figures that are vital for your business growth and success. 

If you are not using any accounting software, as it cost some extra dollars if you are a small business, or you don’t know the technicality of this software cost, or you want to avoid payroll or contractor payment of Bookkeeper, you can easily calculate amazon profit by using amazon seller reports.

Here are some of the figures that you need to find amazon's business profit without using an accounting software:

By knowing the following figures that are easily available through the Amazon FBA seller login you can find your profit. Here is the list of these figures available in Amazon seller reports that can help calculate Amazon profit without using accounting software

  1. Sales

  2. Cost

  3. Amazon refunds

  4. Shipping charges

  5. Marketing

  6. Income tax


  1. Sales: Being an Amazon seller you are probably familiar with amazon seller central. When you log in to Amazon seller central you can find a statement view that is under head payments. When you open this statement you will find out from the date range that it is a bi-weekly Amazon sell statement. So for this, you have to account under the cash basis of accounting:

Cash basis of accounting for Amazon seller/business: under this method, you can write all cash income and expenses that are already available in the bi-weekly amazon seller report. You have to add all income to income accounts under the same title given in that report and expenses to expenses section with the same head given in the report, at the end the balance amount will be the amount that is deposited to your bank by Amazon and you can track it accordingly. But the problem with this method is that the financial report is for a specific period such as a year, semiannually, quarterly, or maybe monthly. So as this report is bi-weekly therefore we need to account for this under the accrual basis of accounting.


          


accrual basis of accounting for Amazon: accounting for Amazon business under this method you need a statement that is available under the head data range in the amazon seller report, you have to record it as the Amazon income side entry with the head given in the Amazon seller report and amazon expenses in with the same head that is in the report, the difference will go to Amazon reserve account and you have to add the transaction in the bank account from Amazon for this month to Amazon reserve account.

               

                       Amazon monthly report available under date range in amazon seller login


Description 

Dr

CR

Income

 

 

  Amazon Income

 

 

      Amazon Gift Wrap Credits

 

 

      Amazon Other Credits

 

 

      Amazon Shipping Credits

 

 

      Product, Shipping, and Gift Wrap Taxes Collected

 

 

      Promotional Rebates

 


                 

  1. Cost includes the detail of purchases that you have bought for selling on Amazon and have been sold you have to account for it and, that you have bear appears in both biweekly Amazon reports and monthly reports you have to record with the same name available on reports.



  1. Refunds:  All the details of refunds are available in both biweekly and monthly Amazon seller reports you have to account for it as reversing income or creating refunds head in such a way that will reverse already recorded Amazon income.

  2. Shipping cost: if the shipping is through amazon that is already included in amazon income and expenses reports either biweekly or monthly. If it is shipped outside Amazon you have to account for shipping expenses that will be for one unit you have to multiply it with the number of shipping.

  3. Marketing cost: if marketing is done through amazon it is already available in Amazon reports you have only to take it into account as an expense. But if marketing is done through other platforms that are available in your bank or credit card as payment you have to record it as marketing expenses as well.


  1. Finally, you have to less the amount of income tax that you have paid on the sales that you have made through the Amazon eCommerce platform. It can be easily found through the 1099-K form provided by amazon.

                Profit and loss template for calculation template to calculate  Amazon or eCommerce Business


ABC LLC 

Profit and Loss

For the year

 

 

 

 

 

$$$

Income

 

 

  Amazon Sales

 

1,358,634.32  

      Amazon Shipping

 

11,563.63  

      Amazon Tax

 

8,290.50  

      Miscellaneous Credits

 

1,111.41  

      Product charges Refund

 

-55,879.62  

  Total Amazon Sales

 

$                                                                   1,323,720.24  

  Ebay Sales

 

189.83  

  Sales

 

12,179.20  

  Shopify Sales

 

5,694.34  

  Square Sales

 

994.40  

Total Income

 

$                                                                   1,342,778.01  

Cost of Goods Sold

 

 

  Supplies and Material

 

634,052.60  

Total Cost of Goods Sold

 

$                                                                      634,052.60  

Gross Profit

 

$                                                                      708,725.41  

Expenses

 

 

  Advertising & Marketing

 

11,664.48  

  Amazon Charges

 

 

      Amazon Advertising Fees

 

43,483.72  

      Amazon FBA Fees

 

22,625.17  

      Amazon Fees

 

420,389.78  

      Amazon Promo Rebates

 

9,524.91  

      Amazon Taxes

 

441.34  

  Total Amazon Charges

 

$                                                                      496,464.92  

  Bank Charges & Fees

 

838.31  

  Contractors

 

2,063.88  

  Insurance

 

1,197.00  

  Legal & Professional Services

 

550.00  

  Office Supplies & Software

 

234.32  

  Shipping, Freight & Delivery

 

57,282.74  

  Taxes & Licenses

 

2,335.91  

  Website & Software Subscription

 

8,328.35  

Total Expenses

 

$                                                                      580,959.91  

Net Operating Income

 

$                                                                      127,765.50  

Other Expenses

 

 

  Unrealized Gain or Loss

 

0.00  

  Exchange Gain or Loss

 

-0.01  

Total Other Expenses

 

-$                                                                                0.01  

Net Other Income

 

$                                                                                 0.01  

Net Income

 

$                                                                      127,765.51  


Balance sheet or statement of financial position for Amazon seller not using accounting software

  1. Assets:

Current assets:

Bank: there must be a closing balance of all banks account. 

Cash in hand: that is petty cash.

Inventory: that is closing inventory which is the amount that is unsold at the time of report preparation.

Receivable (accrual basis)

Non-current assets:

Property plant and equipment

Amazon holding/ Amazon reserve: it is the amount that is not yet clear from Amazon. 

Long-term investment: 

  1. Equity 

Initial investment: it is the amount that is initially invested to start a business.

Owner draw: it is the amount that the owner withdraws from the business.

Retained earnings: it is the profit that includes the profit of current and previous years.

  1. Liabilities:

Loan: it shows the amount of all loans taken

Sales tax payable: Tax that you have collected but not yet submitted to authorities 

Amazon financing credit: This is the pending amount of any financing 

Payable.

        Balanced sheet or statement of financial position format/temple for Amazon business or eCommerce business

ABC LLC

 

Balance Sheet

 

As of December 31 YYYY

 

 

 

 

 

$

Remarks

ASSETS

 

 

  Current Assets

 

 

      Bank Accounts

 

 

        PayPal

3,232.60  

 

        Wells Fargo Business Choice Checking (8506)

43,002.44  

 

      Total Bank Accounts

$      46,235.04  

 

      Other Current Assets

 

 

        Amazon Clearing Account

30.26  

Amazon Holding

        Inventory Asset

181,221.40  

 

        Loan to/from Northeast

0.00  

 

      Total Other Current Assets

$    181,251.66  

 

  Total Current Assets

$    227,486.70  

 

  Fixed Assets

 

 

      accumulated deprecation

-870.00  

 

      equipment

1,019.91  

 

  Total Fixed Assets

$           149.91  

 

TOTAL ASSETS

$    227,636.61  

 

LIABILITIES AND EQUITY

 

 

  Liabilities

 

 

      Current Liabilities

 

 

        Accounts Payable

 

Accrual Basis 

            Accounts Payable (A/P)

0.00  

Accrual Basis 

        Total Accounts Payable

$               0.00  

 

        Credit Cards

 

 

            Credit Card 7534

963.00  

 

            MasterCard (3418)

0.00  

 

        Total Credit Cards

$           963.00  

 

      Total Current Liabilities

$           963.00  

 

  Total Liabilities

$           963.00  

 

  Equity

 

 

      Owner's Investment

4,013.40  

Initial investment

      Owner's Pay & Personal Expenses

-250,161.18  

 

      Retained Earnings

345,055.88  

Previous year’s Profit

      Net Income

127,765.51  

Current year Profit

  Total Equity

$    226,673.61  

 

TOTAL LIABILITIES AND EQUITY

$    227,636.61  

 


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