What is the best way to reconcile Amazon seller deposits?
The settlement report is your source of truth. Amazon doesn’t deposit what you sold. They deposit what you sold minus fees, refunds, FBA storage, advertising spend, and a dozen other line items. Trying to match the bank deposit to your gross sales will never work.
Download the settlement report from Seller Central for each payout period. This report breaks down exactly what made up that deposit: product sales, shipping credits, gift wrap credits, promotional rebates, selling fees, FBA fees, refunds issued, advertising costs, and any other adjustments. The net of all these components equals what hit your bank account.
Set up a clearing account in your bookkeeping software. When the settlement period closes, record the full breakdown from the report. Gross sales go to revenue. Each fee type goes to its own expense category. Refunds reduce revenue. The net amount sits in the clearing account until the deposit arrives in your bank, then you clear it out. This method keeps your books accurate and makes the bank reconciliation straightforward.
For e-commerce sellers with any real volume, manual reconciliation becomes unsustainable. Tools like A2X or Link My Books connect to your Amazon account and automatically parse settlement reports into proper journal entries in QuickBooks. They handle the complexity of splitting out dozens of fee types and matching everything to the correct accounting periods. The monthly cost pays for itself in time saved and errors avoided.
Reconcile on the same schedule Amazon pays you. If you’re on a 14-day payout cycle, reconcile every two weeks. Letting multiple pay periods stack up makes it harder to catch discrepancies and track down issues while the details are still fresh.
Watch for timing differences at month end. A sale on January 30th might not settle until February. Accrual-based sellers need to recognize that revenue in January even though the cash arrives later. The settlement report shows when transactions actually occurred, not just when they paid out.
The biggest mistake sellers make is recording just the deposit amount as revenue. That understates your actual sales and hides your true fee burden. You need to see gross sales and the real cost of selling on Amazon separately. Otherwise you can’t make informed decisions about pricing, advertising spend, or whether the platform is even profitable for you. Working with an Andover, MA bookkeeping service familiar with Amazon’s reporting can help you set up systems that capture this detail from the start.
The Merrimack Valley's Trusted Accounting Partner
The Next Step:
A 15-Minute Call
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.
More Questions
Are there bookkeeping services that specialize in Massachusetts businesses?
Yes, and Massachusetts-specific expertise matters for payroll, sales tax, and state compliance. A bookkeeper familiar with MA requirements handles PFML, multi-state withholding, and DOR filings correctly from the start.
Read answerWhat accounting method should a SaaS startup use?
Accrual accounting is the right choice for most SaaS startups, especially those seeking investment. It properly handles subscription revenue recognition and shows investors the true economics of your business.
Read answerHow do I organize receipts and invoices I've been collecting all year?
Start by separating receipts from invoices, then sort into expense categories that match your bookkeeping. Digitize paper receipts, match everything to bank statements, and set up a simple weekly habit so you never face the same pile next year.
Read answerHow do I track cost of goods sold for e-commerce products?
Track the full landed cost of each product including purchase price, inbound shipping, and packaging. Use accounting software connected to your sales channels with products set up as inventory items so COGS calculates automatically when items sell.
Read answerWhat is the best accounting software for dental offices?
QuickBooks Online is the standard for dental office accounting. Most practices use it alongside their practice management software like Dentrix or Eaglesoft, with proper setup being more important than which software you choose.
Read answerHow do I manage bookkeeping for a property management company?
Property management bookkeeping requires separating owner funds from your operating account, tracking income and expenses by property, and handling security deposits as liabilities. The complexity comes from managing money that belongs to multiple parties.
Read answer
