Xero is an online accounting package, that we have been recommending to all our clients for a number of years.
Xero has completely changed accounting & bookkeeping for small business.
- Through automated bank feeds, it has eliminated many of the small errors that plagued small business accounts in the past.
- Being based in the cloud, means that we can provide real time advice on how your business is performing.
- It changed a complex, time consuming task to a simple, easy one that only takes a few minutes each fortnight.
But Amazon sellers had a problem with Xero:
- As Amazon pays you a net amount (your sales less their fees), the amount you received was not your true sales and the Amazon costs were hidden. The workarounds to fix this were time consuming and not 100% correct because the Seller Central Business Reports did not agree with what you got paid each fortnight.
- Your real Cost of Goods Sold and Gross Profit was difficult to work out meaning that it was difficult to determine what your real profit was each month.
A2X Accounting (A2X)
A2X is a connector that accesses your Seller Central Settlement files, sorts and summarises the data so you can import it directly into Xero.
The Seller Central Settlement files are the only reports that agree exactly to what you are paid each fortnight.
A2X enables you to:
- Report on Sales by Country, Product Group in your profit & loss.
- Report on a line by line basis, all the Amazon costs that they deduct from your payment like FBA fees, Commissions, Shipping, Storage, Refunds, Advertising and reimbursements so those costs don’t get lost and you can then take active measures to reducing them.
- Cost of Goods per sale. This is really important and the reason we recommend A2X, because now you can understand exactly how much profit you are making each fortnight instantly.
Xero & A2X Integration & Setup
Once Xero and A2X is setup, the process is really easy and your bookkeeping only takes a few minutes each fortnight and you have instant accurate profit & loss.
But the trick is the setup, it is complex as we need to make set up new accounts in Xero especially for Amazon businesses and then link those though A2X.
To be honest, the first time, we looked at the Xero A2X integration and set up, it was overwhelming and we are accountants!
But we developed our systems and tested them on our own Amazon business so we can now deliver you the best accounting system for your Amazon business.
We recommend that we set up Xero and A2X for you and then train you on how to use it.
Our Xero & A2X Setup Service includes:
- Setting up Xero with our special Amazon Chart of Accounts and Reports. The Xero subscription is an additional monthly fee (usually $60 per month).
- Setting up A2X and linking the Amazon Sales and Costs to unique Xero Accounts.
- Testing the system works
- One on One training session with you detailing how it works and what you need to do each quarter.
Our fee for the Xero & A2X Setup and Integration is AUD500 (ex GST).
Just complete the form below to get started: