E-Commerce and DTC

Accounting for e-commerce businesses that actually scales

Multi-channel revenue, inventory, returns, chargebacks, and sales tax across dozens of states. We handle the financial complexity so you can focus on growth.

The full picture for online retailers

E-commerce accounting is messier than most people expect. Platform fees, payment processor timing, inventory valuation, and sales tax nexus in states you have never set foot in all require careful handling.

  • Multi-channel reconciliation: Shopify, Amazon, WooCommerce, wholesale
  • Inventory costing: COGS, FIFO, landed cost, and write-downs
  • Payment processor reconciliation: Stripe, PayPal, Afterpay, Klarna
  • Sales tax nexus analysis and registration in new states
  • Sales tax return preparation and filing
  • Returns, chargebacks, and refund accounting
  • 3PL and fulfillment cost allocation
  • Monthly P&L by channel and product line
ShopifyAmazon FBAInventory Sales Tax NexusMulti-Channel

Sales tax: the issue most e-commerce brands ignore

Since the Supreme Court ruling in South Dakota v. Wayfair (2018), most states can require out-of-state sellers to collect and remit sales tax once they cross an economic nexus threshold, typically based on sales volume in a given year.

Many e-commerce brands growing through Shopify or Amazon have nexus in ten or more states without realizing it. We do a nexus analysis as part of every new client onboarding.

Amazon FBA specifics

  • Amazon creates nexus in states where it stores your inventory
  • FBA fees, storage costs, and reimbursements all need proper categorization
  • Amazon settlements are not revenue , reconciling them correctly is critical

E-Commerce Accounting Questions

Do I have to collect sales tax in states where I have no physical presence?

Likely yes, in many of them. After Wayfair, most states enacted economic nexus laws. If you have crossed the threshold in a state, you are generally required to register and collect. We assess your specific exposure and prioritize which states to address first.

How do I value inventory for accounting purposes?

Most product businesses use FIFO (first in, first out) or weighted average cost. For e-commerce, we also factor in landed cost, which includes shipping, duties, and customs fees to get a true cost of goods sold figure. Getting this right affects your reported profit margin significantly.

Our Shopify payouts do not match our revenue. Why?

Because Shopify payouts include net amounts after fees, refunds, and timing differences. Reconciling Shopify accurately means working from the gross transactions and separately accounting for fees, returns, and disputes, not just booking the payout as revenue.

Can you handle both our bookkeeping and sales tax filings?

Yes. We handle both under one engagement, which makes the process cleaner since the same data that drives your books drives your sales tax calculations. No handing off data between providers.

Running an e-commerce business?

Schedule a free consultation. We will review your current setup, identify your sales tax exposure, and give you a clear picture of what needs to be addressed.

Schedule a Consultation

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