QuickBooks
QuickBooks is the gold standard when it comes to accounting systems. With its double ledger accrual system, comprehensive balance sheet capabilities, and widespread recognition among accountants, opting for this tool is usually a safe bet.
It features a double ledger system, allowing you to run your accounting on accrual and share access with your accountant for tax filing. Additionally, it offers a wide range of reports to assess the health of your company.
However, its main drawback is its generality as software. While more eCommerce features are being added, it isn't set up to natively integrate data from sales channels, often requiring manual input or additional software for automation. Its complexity may be daunting for those without an accounting background, leading to a steep learning curve; if you’re not familiar with debits and credits, it’s easy to make mistakes. Continuous management is required to maintain accuracy, potentially making it labor-intensive for eCommerce sellers.
A2X
A2X acts as a crucial link between eCommerce platforms like Amazon, Etsy, and Walmart, and accounting giants QuickBooks and Xero. By automating the data transfer during settlement periods, it simplifies the reconciliation process, albeit not in real-time but typically every two weeks or upon disbursement request.
The automation of data transfer reduces manual entry errors and saves time if you're managing accounting yourself.
Nevertheless, it still necessitates separate accounting software as the foundation, increasing operational costs. Connecting your platforms during the setup process is relatively straightforward, but accurately matching the cost of goods sold (COGS) on an accrual basis with sales data requires continuous management.
SellerBoard
SellerBoard offers eCommerce businesses a deep dive into SKU insights and real-time data analytics directly synced with Amazon or other platforms. It's designed to complement accounting software by providing detailed operational insights rather than serving as a standalone accounting solution. It provides a useful glimpse into your company but typically omits other operational expenses like insurance, salaries, taxes, and more.
SellerBoard is one of the best data visualization tools for Amazon sellers, so for its low price, it’s a great companion to your accounting tool.
For a seller to do their bookkeeping they likely need another tool like QuickBooks. SellerBoard does support entering basic expense transactions, but it is not designed as a double ledger system, nor provide the reports or reconciling functions necessary to prepare your financial statements to a tax professional.
For those looking for a more in depth view than QuickBooks, SellerBoard is a great tool. Or if you are small enough to manage your finances on spreadsheets, this easy to use program is a great stepping stone into the world of automated analysis.
EcomBalance
EcomBalance provides a premium, done-for-you bookkeeping service, leveraging QuickBooks Online and A2X to ensure that eCommerce businesses have accurately reconciled books. Each client is assigned a dedicated account manager who they share documents through.
This service takes the bookkeeping burden off the seller, ensuring that financial records are meticulously maintained by their expert accounts. The use of QuickBooks Online and A2X also means that businesses benefit from robust accounting frameworks and automated data integration.
The premium service does come at a premium cost, which may not be feasible for all eCommerce sellers. Additionally, it does not offer eCommerce-specific SKU analytics or proprietary reports, which could be a drawback for businesses looking for deeper operational insights.
SellAnalytix
SellAnalytix offers a unique blend of software and service, directly connecting to your Amazon account to provide real-time data while also leveraging a team of US-based bookkeepers. It offers the advanced SKU analytics of SellerBoard, while still fitting into a double ledger accrual system that provides all reports necessary for completing taxes.
The SellAnalytix team, similar to EcomBalance, works one-on-one with sellers to manage their accounting and ensure books are penny perfect. This arrangement gives sellers the time and data needed to focus on actionable insights for business growth.
Fortunately, because they have their proprietary software, they can price their services competitively, making them accessible to sellers of all levels. SellAnalytix has the benefits of all the other competitors while fitting into a single log in.
ConnectBooks
ConnectBooks stands as a hybrid tool merging the integration ease of A2X with some reporting capabilities of SellerBoard. It can help automate your accounting to QuickBooks by pulling either summarized disbursement data, or broken out by SKU & orders allowing for more granularity.
They do basic profit analysis broken down by SKU in their program, though it requires you to continue to update COGS & other fees in QuickBooks or their software. They also can help forecast inventory and alert you when you reach certain stock levels; all this can be viewed on their business dashboard containing various financial metrics including refund information.
The downside is that you still need a separate accounting software like QuickBooks to handle your other business transactions, and depending on your volume of orders the price can add up. Similar to A2X, they can connect to Shopify, Walmart, or eBay to help automate those finances at an additional cost. Fortunately, they do offer live onboarding and have a responsive team dedicated to ensuring your finances are set up correctly.
