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Experienced Member

What are common "Chart of Accounts" accounts for selling products through Amazon?

 
5 Comments
Established Community Backer ***

Re: What are common "Chart of Accounts" accounts for selling products through Amazon?

Amazon has nothing to do with the chart of accounts

 

you have income account(s)

and expense accounts

 

the items you sell determine which accounts are posted to.

Experienced Member

Re: What are common "Chart of Accounts" accounts for selling products through Amazon?

Lou, Chart of accounts can vary quite a lot depending on the owner's needs and preferences. If you want to get a good idea of the accounts that could be used, look for an example of a settlement statement from Amazon. It will give you a good idea of some of the accounts you may want to set up.
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Content Leader

Re: What are common "Chart of Accounts" accounts for selling products through Amazon?

Also recommend doing sub-accounts so you can consolidate broader totals quickly. They give you more flexibility when running reports because you can easily separate data (if you need to). 

 

Example: 


Income (general)

  • Income Widget a
  • Income Widget b
  • Income Widget c
    • (in the future as you grow, you can create subs of subs as well!) 
Established Community Backer ***

Re: What are common "Chart of Accounts" accounts for selling products through Amazon?

@JamesOng


@JamesOng wrote:

Also recommend doing sub-accounts so you can consolidate broader totals quickly. They give you more flexibility when running reports because you can easily separate data (if you need to). 

 

Example: 


Income (general)

  • Income Widget a
  • Income Widget b
  • Income Widget c
    • (in the future as you grow, you can create subs of subs as well!) 

You can certainly do it that way, of course it does make your chart of accounts really long, even if the company only sells 20 or 30 items

 

But why not just put all sales income in one account, and use the reporting functions built in to QB, sales by customer, sales by item, etc

Content Leader

Re: What are common "Chart of Accounts" accounts for selling products through Amazon?

@Rustler, good point, but if @Lou D plans ahead and structures his accounts in a way that anticipates growth (or the need for detailed reporting), it will be much easier to stay organized down the road.