Use your accounting software to keep up with your financial information.
It will be important to your Amazon accounting records, as I will discuss below. Use Inventory Lab to list your products and ensure that you get your product costs correct in your Inventory Lab listing. Here is how we recommend you use Inventory Lab and your accounting systems together. Finally, for this discussion, it will allow you to see your inventory balance based on your financial activity what you have paid or owe suppliers. Compared to your prior year, or prior month, it will show you if your assets and/or debt are growing. Your balance sheet will show your working capital (which is your current assets less your current liabilities) which is both a measure of liquidity and efficient use of capital. The reason it is important is that it shows you a financial picture over the entire life of your business, whereas the P&L is only looking at the business for the current year. The balance sheet provided by accounting software is also an incredibly important statement that many sellers overlook. This reconciling or balancing is your way of knowing your information is accurate. The reason you need an accounting system is it will track your financial data based on banking information that is reconciled or balanced back to a bank statement. They do not directly connect to Amazon Seller Central.
Accounting software typically connects to the bank and credit card institutions. How about Quickbooks and Xero how do they factor into the equation? These are accounting software programs and provide both an Income Statement, also known as a Profit and Loss (P&L) Statement, and a Balance Sheet. There is a huge time savings using software like Inventory Lab, especially for those with numerous SKU’s. Inventory Lab can also give you profit and loss information about the overhead or business expenses that aren’t product-related, as long as you input that information directly. By syncing directly with Amazon, they can give you up-to-the-minute sales and stock information. One question that came up several times was “Do I need Inventory Lab and Quickbooks or Xero?” It’s an easy answer – Yes! Let’s dive into why both Inventory Lab and accounting software are both needed.įirst, what can Inventory Lab do that Quickbooks and Xero can’t do? Inventory Lab is great for listing your products directly with Amazon and for tracking your product costs and inventory levels. I had a blast reviewing their accounting books and giving them suggestions. This past week I had the opportunity to visit with 30 hard-working ecommerce sellers at an Amazon Seller Retreat.
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