12 Steps to Reliable eCommerce Accounting & Month-End Close
For established Amazon, Shopify and multichannel sellers: a practical framework that takes the accounting process beyond bank-feed categorization, all the way to financial reporting and ongoing review.
← Financial Resource CenterThis guide explains what a structured eCommerce accounting process should consider. It is not a promise that every step is included in every engagement. The exact work depends on the sales channels, available source records and the agreed scope.
Foundation
Understand the business and map the money flow
Document each marketplace, store, processor, bank, currency, inventory source and settlement path. Confirm entity ownership and accounting responsibilities.
Set up the accounting structure
Configure QuickBooks Online or Xero, the chart of accounts, account connections, marketplace integrations and consistent rules. Validate mapping before relying on automated posting.
Collect records and establish opening balances
Obtain bank and credit card statements, settlement reports, inventory information, loans and supporting records. Agree on the period being reviewed and identify unsupported opening balances.
Record & reconcile
Record complete marketplace activity
Record sales, discounts, refunds, platform fees, shipping and taxes as applicable using reliable sales and settlement reports. Avoid treating net payouts as total revenue.
Reconcile settlements, processors and bank deposits
Tie Amazon, Shopify and processor activity to integration postings, clearing balances and bank movements. Explain timing differences, held funds and outstanding settlement items.
Reconcile bank, credit card and key balance sheet accounts
Reconcile statement balances and review cash, clearing accounts, receivables, payables, loans, intercompany and other material balances. Maintain schedules for unresolved items.
Account for inventory, landed costs and COGS
Reconcile quantity movements and supported costs to inventory records and the ledger. Review freight, landed costs, returns, write-offs and cost-of-sales methods within the available data.
Close & review
Apply accruals and month-end cutoffs
Review the proper period for sales, costs, expenses, inventory movements, liabilities and outstanding settlements. Document accruals and reversals as appropriate.
Investigate exceptions and approve corrections
Review duplicate postings, unusual balances, coding errors and prior-period issues. Document evidence, proposed entries, impact and approvals before posting material corrections.
Complete the monthly close checklist
Confirm reconciliations, exception reviews, supporting schedules and responsibilities are completed. Record what remains unresolved and whether financial reports are provisional.
Report & improve
Prepare and explain financial reports
Review the profit and loss, balance sheet and cash observations; explain material trends, gross margin and variances. Clearly label assumptions and data limitations.
Use controller oversight to guide next actions
Prioritize financial control issues, inventory/cash questions, follow-up owners and deadlines. Where scoped, use budget comparisons, cash forecasts and management schedules to support decisions.
What makes eCommerce accounting different?
Sales reports and bank deposits rarely tell the whole story. Marketplace fees, refunds, reserves, inventory timing, fulfillment charges, multiple payment processors and cross-month settlements can create differences that need support. A zero clearing-account balance is not the objective by itself; the objective is an explained and supportable balance.
Use the original five lessons as introductory tutorials
These earlier GreenTarget lessons can help with the basics. They are learning resources, not a complete month-end close checklist for a complex eCommerce business.
Accounting platforms and assumptions
GreenTarget works most commonly with QuickBooks Online and can also support Xero. Appropriate marketplace integrations such as A2X and Link My Books may be used. Inventory costing, SKU profitability, cash forecasts and variance analysis require reliable inputs and documented allocation assumptions. Tax filings and complex multistate sales tax compliance are outside our standard accounting and controller positioning.
Need this process applied to your business?
We can discuss the current state of your books, marketplace flows, reconciliation exceptions and reporting needs, then identify an appropriate accounting or fractional controller scope.
Book an eCommerce Accounting Consultation ↗