Accounting | NyEcom

E-Commerce Specialized Bookkeeping & Financial Record-Keeping

Traditional bookkeeping methods fall short when applied to e-commerce businesses that operate across multiple marketplaces, payment processors, and fulfillment channels. Our accounting team specializes in the unique financial workflows of online sellers, capturing every transaction with the granularity and categorization that marketplace businesses require. We maintain your books using accrual-based accounting principles adapted specifically for e-commerce, ensuring that revenue is recognized when earned and expenses are matched to the correct periods - regardless of when cash actually changes hands. Our team reconciles daily transaction feeds from Amazon, Walmart, Shopify, eBay, and other platforms, mapping each line item to the correct chart of accounts. We track cost of goods sold at the SKU level, allocate marketplace fees and advertising spend to the appropriate product lines, and maintain clear audit trails for every financial entry. This level of detail transforms your books from a compliance obligation into a strategic asset that reveals exactly where your business makes and loses money. Our bookkeeping process is designed to be continuous rather than periodic, so your financial data is always current and ready for review at any point during the month.

SKU-Level Cost Tracking

Understanding profitability at the individual product level is essential for making smart inventory and marketing decisions. Our team tracks landed costs, marketplace fees, fulfillment charges, advertising spend, and return-related expenses for every SKU in your catalog. We build cost models that account for variations in shipping rates by destination, FBA fee changes across size tiers, and promotional discounts that affect net revenue. This granular tracking allows you to identify which products truly drive profit and which ones consume margin, insights that are impossible to extract from aggregated financial summaries alone. We update these cost models regularly to reflect changes in supplier pricing, shipping rates, and marketplace fee structures.

Chart of Accounts Design for E-Commerce

A generic chart of accounts cannot capture the financial complexity of a marketplace business. We design custom account structures that separate revenue by marketplace and channel, categorize fees by type and platform, and isolate advertising costs by campaign objective. Our chart of accounts framework distinguishes between FBA fees, referral fees, storage fees, and removal order costs so you can track each expense category independently. We also create dedicated accounts for marketplace-specific programs like Subscribe and Save, Lightning Deals, and Vine, giving you complete visibility into the financial impact of every program you participate in. This structured approach makes tax preparation straightforward and audit responses fast.

Transaction Categorization & Automation

E-commerce businesses generate thousands of transactions every month across multiple platforms and payment processors. Manual categorization is not only time-consuming but also error-prone. Our team implements rule-based automation that categorizes the vast majority of transactions accurately on import, using pattern matching against marketplace settlement reports, payment gateway exports, and bank feeds. We review and refine these rules continuously to handle new transaction types, fee structures, and promotional programs as they appear. For unusual or one-time transactions that fall outside established patterns, our bookkeepers apply manual review and categorization within 48 hours. This hybrid approach combines the speed of automation with the judgment of experienced e-commerce accountants.

Marketplace Revenue Reconciliation & Payment Gateway Alignment

Revenue reconciliation is one of the most challenging aspects of e-commerce accounting. Marketplace settlement reports, payment gateway deposits, and bank statements rarely agree at first glance because each system records transactions on different timelines using different groupings. Amazon settles every two weeks, Shopify Payments deposits daily, and other marketplaces follow their own schedules, all while holding reserves, deducting fees, and processing refunds at varying intervals. Our reconciliation process traces every dollar from the customer's purchase through the marketplace or payment processor and into your bank account, identifying and resolving discrepancies along the way. We reconcile at the transaction level rather than the batch level, which means we catch individual errors that aggregate-level checks would miss entirely. Common discrepancies we uncover include incorrect fee assessments, missing reimbursements, duplicate refund deductions, and settlement timing differences that create phantom variances. By maintaining a disciplined reconciliation cadence, we ensure that your reported revenue is accurate, your cash position is reliable, and you are not leaving money on the table due to marketplace processing errors.

Settlement Report Analysis

Marketplace settlement reports contain dense financial data that requires specialized knowledge to interpret correctly. Amazon settlement reports alone include dozens of transaction types ranging from product charges and gift wrap credits to FBA inventory placement fees and reimbursement adjustments. Our team parses these reports line by line, matching each entry to the corresponding order, return, or adjustment in your accounting system. We flag anomalies such as unexpected fee increases, reimbursements that were approved but never paid, and promotional charges that do not match your deal submissions. This rigorous analysis often uncovers financial discrepancies worth thousands of dollars per quarter that would otherwise go unnoticed.

Payment Gateway Reconciliation

For sellers who operate their own direct-to-consumer storefronts alongside marketplace channels, payment gateway reconciliation adds another layer of complexity. Stripe, PayPal, Square, and other processors each have their own fee structures, settlement timelines, and reporting formats. Our team reconciles every gateway deposit to the underlying transactions, accounting for processing fees, chargebacks, disputes, and currency conversion charges. We maintain separate tracking for each payment method so you can compare processing costs across gateways and make informed decisions about which payment options to offer your customers. When chargebacks or disputes arise, we ensure the financial impact is recorded accurately and any recovered funds are properly credited.

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Multi-Currency Operations & International Financial Management

Selling internationally introduces currency risk and accounting complexity that can quickly overwhelm businesses without proper financial infrastructure. When you sell on Amazon UK in pounds, Amazon Germany in euros, and Amazon Japan in yen, every transaction creates a foreign exchange event that must be recorded at the correct rate and tracked through settlement. Our accounting team manages the full lifecycle of multi-currency transactions, from the initial sale in the foreign currency to marketplace settlement, currency conversion, and final deposit in your home currency. We record exchange rate gains and losses as they occur, giving you accurate visibility into how currency fluctuations affect your actual profitability in each international market. Our team also works with your banking partners and currency conversion services to optimize the timing and method of currency transfers, helping you minimize conversion fees and take advantage of favorable rate movements. For businesses with significant international revenue, we prepare currency exposure reports that quantify your risk and inform hedging decisions.

Exchange Rate Tracking & Gain/Loss Reporting

Every international transaction involves at least two exchange rate events: the rate at the time of sale and the rate at the time of settlement. The difference between these rates creates realized gains or losses that directly impact your bottom line. Our team records exchange rates from authoritative sources at each stage of the transaction lifecycle, calculating and categorizing currency gains and losses with precision. We produce monthly reports that break down exchange rate impact by marketplace, currency pair, and time period, allowing you to see exactly how much currency movements cost or contributed to your international operations. This data is essential for accurate tax reporting and for evaluating whether international expansion targets are meeting their profitability goals after currency effects are considered.

International Tax Compliance Support

Operating across borders means navigating VAT, GST, consumption tax, and other indirect tax regimes that vary by country and product category. Our accounting team maintains the financial records and transaction documentation that your tax advisors need to prepare accurate international tax filings. We track VAT collected and remitted by country, maintain records of customs duties and import fees, and ensure that intercompany transactions are documented at arm's length for transfer pricing compliance. While we work alongside your dedicated tax professionals for filing and advisory services, our record-keeping ensures they always have clean, complete, and well-organized data to work from.

Currency Conversion Optimization

The method and timing of currency conversions can meaningfully affect your net revenue from international sales. Marketplace-provided currency conversion services are convenient but often carry hidden spreads that exceed those available through dedicated foreign exchange providers. Our team analyzes your conversion costs across all channels and recommends strategies to reduce them, whether that involves holding foreign currency accounts, using specialized FX services, or adjusting the timing of transfers to align with favorable rate windows. We track conversion costs as a distinct expense category so you can measure the savings from any changes implemented.

Financial Reporting, P&L Analysis & Cash Flow Management

Accurate financial reporting is the foundation of sound business decisions, and e-commerce businesses need reports that go far beyond standard income statements and balance sheets. Our reporting framework is built specifically for marketplace sellers, delivering financial statements that reflect the true economics of your business including marketplace-specific fee structures, channel-level profitability, and the timing differences between revenue recognition and cash collection. We prepare monthly financial statements, including profit and loss statements, balance sheets, and cash flow statements - that are delivered within ten business days of month-end close. Beyond the standard statements, we produce management reports that highlight key performance metrics like contribution margin by channel, customer acquisition cost, return rate impact, and advertising cost of sale. These reports give you and your leadership team the financial intelligence needed to allocate capital effectively, negotiate with suppliers from a position of knowledge, and set pricing strategies grounded in actual cost data rather than estimates.

Profit & Loss Reporting by Channel and Product Line

A consolidated P&L tells you whether your business is profitable overall, but it cannot tell you where that profit comes from. Our channel-level P&L reports break down revenue, cost of goods sold, marketplace fees, advertising spend, and fulfillment costs by individual sales channel and product line. You can see at a glance whether your Amazon US business subsidizes your Walmart channel, or whether a high-revenue product line actually destroys margin after advertising costs are fully allocated. We also prepare trend analysis reports that track profitability metrics over time, making it easy to spot deteriorating margins before they become a serious problem. These reports are formatted for both operational review and investor or lender presentations.

Cash Flow Forecasting & Working Capital Management

E-commerce businesses face unique cash flow challenges because marketplace settlement timelines, inventory purchasing cycles, and advertising spend create significant gaps between when cash goes out and when it comes back in. Our team builds rolling cash flow forecasts that model your expected inflows from marketplace settlements and direct sales against planned outflows for inventory purchases, advertising budgets, operating expenses, and tax obligations. We identify potential cash shortfalls weeks in advance, giving you time to adjust purchasing schedules, negotiate extended payment terms with suppliers, or arrange short-term financing. We also monitor your working capital metrics - including days inventory outstanding, days payable outstanding, and cash conversion cycle - to ensure your business maintains healthy liquidity while funding growth.

Financial Statements & Audit Readiness

Whether you need financial statements for internal decision-making, bank loan applications, investor due diligence, or annual tax preparation, our team delivers clean and well-documented reports that stand up to scrutiny. We maintain organized supporting schedules for every material balance sheet account, including accounts receivable aging by marketplace, inventory valuations by product category, and accrued expense details. Our month-end close process includes a standardized checklist of reconciliations, adjustments, and reviews that ensures consistency and completeness every period. When your CPA firm or auditors request documentation, we provide organized workpapers and clear explanations that minimize back-and-forth and reduce the cost of your audit or review engagement. This commitment to audit readiness means your financial data is always prepared to support whatever business decisions or external requirements arise.

E-Commerce Accounting Built for Marketplace Sellers

Revenue Reconciled Across Every Marketplace