Ecommerce bookkeeping can look simple because money arrives in the bank automatically. In reality, platform fees, refunds, stock, shipping, VAT and payment processors can make the records more complex than a standard service business.
Record gross sales, fees and refunds
Bank deposits from platforms are usually net of fees. Good bookkeeping separates sales, fees, refunds and other adjustments.
- Shopify, Amazon or Etsy reports
- Stripe and PayPal statements
- Refund and chargeback records
Track stock and cost of sales
Profit depends on more than revenue. Product costs, shipping, packaging and stock movements need attention.
- Supplier invoices
- Import costs and duties
- Stock purchases and adjustments
Watch VAT and marketplace rules
VAT treatment can vary depending on where customers are, what is sold and which platform handles the transaction.
- Check VAT registration position
- Review marketplace reports
- Ask for advice on cross-border sales
Reconcile payment processors
Payment processors often deduct fees before paying out. Reconciling only the bank deposit can hide costs and distort sales.
- Match payout reports to bank deposits
- Record fees separately
- Check reserve balances
Review margins monthly
Ecommerce businesses can grow sales while margins shrink. Monthly bookkeeping should show the real position.
- Gross profit by product type
- Ad spend and fulfilment costs
- Cash tied up in stock
Key takeaway
For ecommerce, the bank deposit is not the sale. The platform report tells the full story.
