Amazon seller accountants

Selling through Amazon can create a successful and scalable business, but the accounting behind each sale is rarely straightforward. Your bank deposits do not show the full picture. Amazon may deduct fulfilment fees, referral fees, advertising costs, refunds, storage charges and other adjustments before sending your payout.

Asmat & Co Accountants helps UK Amazon sellers turn this information into accurate accounts, reliable tax figures and useful financial reports. We take care of the numbers while giving you a clearer understanding of what your business is actually earning.

Our support can help you:

• Reconcile Amazon sales and settlement reports
• Record FBA and seller fees correctly
• Manage VAT registration and returns
• Monitor stock costs and gross profit
• Prepare annual accounts and tax returns
• Separate UK and overseas transactions
• Understand cash flow and business performance
• Keep accurate digital records for HMRC

Accounting support built around your Amazon business

Amazon businesses operate differently from traditional retailers. A single payout can contain hundreds or thousands of transactions, including sales, refunds, fees, reimbursements and withheld balances.

Recording the amount received into your bank as sales income can produce misleading accounts. It may understate turnover, hide costs and create problems when preparing VAT returns or year-end figures.

Our Amazon accounting service looks beyond the payout. We use the available reports to identify the gross sales, deductions, refunds and other movements that make up each settlement. These figures can then be matched against your accounting records and business bank account.

This gives you accounts that reflect how your business actually traded, not just how much Amazon transferred to you.

What our Amazon seller accounting service can include

Amazon bookkeeping and settlement reconciliation

Accurate bookkeeping is the foundation of reliable accounts. We can review Amazon settlement reports and reconcile them against your bank deposits, accounting software and supporting documents.

Our bookkeeping services can include the correct recording of:

• Gross product sales
• Shipping income
• Amazon referral fees
• FBA fulfilment charges
• Storage and removal fees
• Advertising costs
• Customer refunds
• Seller reimbursements
• Subscription charges
• Reserve balance movements
• Sales made in different currencies

This reduces unexplained differences and helps ensure that income and expenses are not missed or recorded twice.

VAT registration and VAT returns

VAT can become one of the most difficult parts of running an Amazon business. Your obligations can depend on where your business is established, where your stock is stored, where customers are located and whether Amazon is responsible for collecting VAT on a particular transaction.

For UK-established businesses, compulsory VAT registration generally applies when taxable turnover exceeds the current £90,000 threshold during any rolling 12-month period. Voluntary registration may also be appropriate in some circumstances.

Businesses that are not established in the UK may not benefit from the same registration threshold. A VAT obligation can arise from the first taxable supply, particularly when stock is stored in the UK.

Our VAT return accountant service can help with:

• Reviewing whether VAT registration is required
• Preparing and submitting VAT returns
• Reconciling VAT figures against Amazon reports
• Reviewing sales on which Amazon has collected VAT
• Identifying potentially reclaimable input VAT
• Maintaining digital VAT records
• Supporting Making Tax Digital compliance
• Reviewing import VAT evidence

Amazon collecting VAT on certain transactions does not necessarily remove all of your own VAT responsibilities. Your records must clearly distinguish between sales for which Amazon accounts for VAT and transactions that remain your responsibility.

Annual accounts and business tax returns

We prepare accounts using your Amazon sales information, bank transactions, purchase invoices, stock records and other business documents.

Our company accounts service can help you understand:

• Your total annual sales
• Gross profit after product costs
• Amazon and fulfilment expenses
• Advertising expenditure
• Overheads and administrative costs
• Closing stock value
• Taxable business profit
• The amount available for reinvestment or extraction

We also prepare the relevant Corporation Tax or Self Assessment returns and explain upcoming liabilities in clear language.

Stock and cost of sales

Purchasing stock does not always mean that the full cost can immediately be treated as an expense. Unsold stock held at the accounting year end normally needs to be valued and included in your accounts.

Without reliable stock figures, your reported profit can be inaccurate. This may affect your tax calculation and make it difficult to understand whether individual products are delivering a worthwhile margin.

We can help you organise records for:

• Product purchases
• Freight and shipping costs
• Customs duties
• Packaging costs
• Amazon warehouse stock
• Stock held by other fulfilment providers
• Damaged, returned or obsolete goods
• Stock in transit
• Year-end inventory valuations

Good stock accounting also makes it easier to compare revenue with the direct cost of generating that revenue.

Amazon FBA accounting

Fulfilment by Amazon can save you time, but it also introduces additional accounting entries and costs. FBA sellers may have fulfilment fees, long-term storage charges, removal fees, reimbursement payments and stock movements appearing across several Amazon reports.

Your accountant needs to understand how these reports connect. Simply categorising each Amazon payout as income is not enough.

We can help reconcile your FBA activity and identify whether the charges shown in your Amazon account have been correctly reflected in your bookkeeping. We can also review the effect of fulfilment costs on your margins so you can see whether increasing sales are producing increasing profits.

Understand your real Amazon profit

A growing sales figure can look encouraging, but turnover alone does not tell you whether your business is financially healthy.

Your actual profit may be affected by:

• Product purchase costs
• Amazon referral and fulfilment fees
• Pay-per-click advertising
• Freight and customs charges
• Returns and damaged stock
• Warehousing costs
• Currency conversion charges
• Software subscriptions
• Packaging and labelling
• Discounts and promotions

We can prepare monthly or quarterly reports that bring these figures together. This helps you identify products with weak margins, rising fulfilment costs or advertising expenditure that is no longer generating an acceptable return.

Clear reporting also helps you plan for tax, manage stock purchases and avoid confusing a temporary cash balance with available profit.

Support for sellers trading in different currencies

Amazon sellers may receive settlements in pounds, euros, US dollars or other currencies. Exchange rate movements and currency conversion charges can create differences between the amount shown in your marketplace report and the amount received into your bank.

We can help account for foreign currency transactions and ensure that exchange differences are treated consistently. This is particularly useful when you purchase stock overseas, sell through more than 1 Amazon marketplace or use a separate currency payment provider.

Imports, customs duties and import VAT

Importing products into the UK creates additional records that should be retained and matched with your bookkeeping.

Depending on your arrangements, relevant documents may include:

• Commercial invoices
• Supplier purchase invoices
• Freight invoices
• Customs declarations
• Import VAT statements
• Postponed import VAT statements
• Duty calculations
• Evidence of payment
• Bills of lading or airway bills

The business details used for imports should be consistent with the entity operating the Amazon seller account. Missing or incorrect documents can affect whether import VAT is recoverable.

We review the accounting evidence available and highlight gaps before they cause problems in a VAT return or at the year end.

Choosing the right business structure

You may begin selling on Amazon as an individual or sole trader and later consider operating through a limited company.

The right structure depends on your expected profits, other income, commercial risks, plans for growth and how you intend to take money from the business. Forming a company is not automatically the best answer for every seller.

Our limited company accountants can explain the accounting and tax responsibilities involved, including:

• Company accounts
• Corporation Tax returns
• Director remuneration
• Dividend records
• Payroll requirements
• Business and personal expenditure
• Companies House deadlines
• Director Self Assessment returns

We explain the practical differences before recommending a course of action.

Accounting software for Amazon sellers

The right accounting setup can reduce manual work and improve accuracy. Depending on the volume and complexity of your sales, your setup may include accounting software, Amazon integration software, inventory systems and separate expense management tools.

We can help you decide what level of software is appropriate rather than recommending unnecessary systems.

A suitable setup should allow you to:

• Record gross sales rather than bank deposits alone
• Separate fees, refunds and reimbursements
• Maintain a clear audit trail
• Reconcile settlements to the bank
• Store invoices and receipts digitally
• Prepare Making Tax Digital compliant VAT returns
• Produce useful management reports
• Add other sales channels as your business grows

Automation can save time, but it should still be checked. Incorrect mapping or duplicated transactions can quickly create inaccurate accounts.

Support for multichannel ecommerce businesses

Many Amazon sellers also trade through Shopify, eBay, Etsy, TikTok Shop or their own website. Each platform may produce different reports and pay funds into the same business bank account.

We can bring these sales channels together while keeping a clear breakdown of income, platform fees and VAT treatment. This gives you a complete view of the business rather than treating each marketplace in isolation.

It also helps ensure that your total taxable turnover is monitored across all channels, not just Amazon.

How we work with you

Understand your selling model

We begin by understanding what you sell, which Amazon marketplaces you use, where stock is held, how orders are fulfilled and whether you trade through any other channels.

Review your existing records

We review your Amazon reports, bank transactions, accounting software, VAT position and previous returns. Any missing information or reconciliation differences are explained clearly.

Build a reliable accounting process

We agree how documents and reports will be collected, how often bookkeeping will be completed and which software will be used.

Manage your deadlines

We prepare the relevant accounts and returns, explain the figures and submit them to HMRC or Companies House when authorised to do so.

Help you plan ahead

As your business changes, we can review VAT turnover, profit, stock levels, cash flow and whether your current business structure remains appropriate.

Why choose Asmat & Co Accountants?

Asmat & Co Accountants has more than 19 years of experience supporting UK businesses with accounting, bookkeeping, VAT and taxation.

Our ACCA and ACMA qualified professionals focus on accurate work, clear communication and practical advice. We do not simply prepare a return at the end of the year. We help you create records that can support better decisions throughout the year.

You will benefit from:

• A dedicated accountant
• Qualified and experienced professionals
• Fixed and transparent fees
• Support by telephone and email
• Clear explanations without unnecessary jargon
• Proactive reminders and tax guidance
• Assistance when moving from another accountant
• Support for growing and established businesses

Our approach is designed to give you confidence in your figures while reducing the amount of time you spend dealing with accounting administration.

Who we can help

Our Amazon seller accounting services are suitable for:

• New Amazon sellers setting up their records
• Established FBA businesses
• Seller Fulfilled Prime and FBM sellers
• Private-label brands
• Wholesale and retail arbitrage businesses
• Sole traders selling through Amazon
• Limited company sellers
• Businesses importing products into the UK
• Multichannel ecommerce businesses
• Overseas businesses selling to UK customers

The support you require will depend on your structure, sales volume, marketplaces, stock locations and VAT position.

Get clearer accounts for your Amazon business

Spend less time working through settlements, fees and tax records. Contact Asmat & Co Accountants to discuss your Amazon business and receive practical accounting support based on how you trade.

Frequently asked questions

What do Amazon seller accountants do?

Amazon seller accountants reconcile marketplace settlements, record gross sales and Amazon fees, prepare accounts and tax returns, manage VAT obligations and help sellers understand their true profit. They should also understand refunds, FBA charges, stock valuation, multiple currencies and the difference between Amazon payouts and total sales.

Do I need an accountant for Amazon FBA?

You are not legally required to appoint an accountant simply because you use Amazon FBA. However, an accountant can be valuable when transaction volumes increase, you become VAT registered, import products, hold significant stock or trade through multiple marketplaces.

Professional support can also reduce the risk of treating net Amazon deposits as sales or overlooking fees, refunds and year-end stock.

Do Amazon sellers need to register for VAT in the UK?

A UK-established business generally needs to register when its total taxable turnover exceeds £90,000 in a rolling 12-month period or when it expects to exceed the threshold within the next 30 days.

Different rules apply to businesses that are not established in the UK. These businesses may need to register from their first taxable UK supply, particularly where stock is stored in the UK. Your complete selling and fulfilment arrangements should be reviewed before deciding whether registration is required.

Can Amazon seller fees be claimed as business expenses?

Amazon referral fees, fulfilment charges, storage costs, seller subscriptions and advertising costs will normally be deductible when they are incurred wholly and exclusively for the business. The treatment depends on the nature of the cost and the evidence available.

You should retain settlement reports, invoices and supporting records so each expense can be identified and recorded correctly.

How do Amazon sellers pay tax in the UK?

Sole traders generally pay Income Tax and National Insurance on their taxable business profits through Self Assessment. Limited companies pay Corporation Tax on taxable company profits, while directors may have personal tax obligations relating to salary, dividends or other income.

Tax is calculated using profit rather than the amount Amazon pays into your bank account. Accurate records of sales, fees, stock, refunds and other expenses are therefore essential.