Amazon sends out deposits on a biweekly basis, and when that money comes in, it seems like the easiest thing to do is simply hit the “add” button on Quickbooks and call it a day.
But while it may be an efficient way to account for your earnings, is it really the best way to keep track of where your money is coming from?
The short answer is no, and Tyler explains why in this week’s video.
What does splitting a deposit do?
- Teases out what percent of the deposit goes to Amazon fees (FBA, commissions)
- Reveals post-advertising gross
- Allows you to determine profit as a percentage of total sales
- Determines whether Amazon loan payments have been deducted from profit
In short, adding a deposit as one single line item does not give the full picture of where your money comes from and what it’s doing for your business.
To learn more about how to effectively and efficiently do your own investor-grade accounting in less than an hour a week, check out our DIY Amazon Accounting eCourse.