The Woodard Report

Choosing the Right Tools for Amazon Accounting

Written by Rachel Dauchy | Nov 10, 2026, 7:46:09 PM

If you read my last article, you know that Amazon accounting is… a puzzle.

And if you’ve tried to do it manually (even just once), you probably also know this: You can do it manually… but you really shouldn’t.

I've been there. I've opened settlement reports, tried to follow every line item, and thought, "Okay, I'll just build this out in QuickBooks."

And while it's possible, it doesn't take long before you're sorting through fees, refunds, adjustments, and transactions that don't quite match what landed in the bank account.

How do you manage all that information efficiently?

This is where technology comes in. I'm a big fan of apps and automation, but I've also learned that adding more technology doesn't necessarily make things easier. The trick is finding the right tools for your clients and understanding what those tools actually need to accomplish.

Getting accurate sales data into your accounting software

First things first: if you’re working with Amazon, you need a connector. Full stop.

These tools take Amazon settlement data and turn it into something your accounting system can actually handle.

When looking for a sales data integration tool, here are some things to consider:

  • Gross vs. net sales: Accurately capturing revenue, refunds, fees, taxes, and payouts instead of simply recording bank deposits.
  • Summarized transactions: Bringing sales activity into your accounting system without creating thousands of unnecessary individual transactions.
  • Multiple sales channels: Supporting Amazon, Shopify, and other platforms as clients expand.
  • Account mapping: Properly categorizing revenue, fees, liabilities, and other transactions.
  • Reconciliation: Making it easier to match accounting entries to marketplace settlements and bank deposits.

One thing I've learned working with eCommerce clients is that getting the data into your accounting software is only part of the process. It needs to be accurate, organized, and easy to reconcile. Otherwise, you're just automating a mess!

Before choosing a connector, I want to know exactly what information it's bringing over, how it's categorizing transactions, and whether I can easily trace those numbers back to the original sales platform.

Understanding inventory and COGS

Now let’s talk about inventory, because this is where things can get complicated fast. Maybe your accounting software can handle simple inventory, but once you start dealing with multiple channels, bundles, and Fulfilled by Amazon, it starts to hit its limits.

When looking for an inventory tool, here are some things to consider:

  • Inventory tracking across multiple platforms
  • Inventory valuation and costing methods
  • Proper recognition of COGS
  • Integration between inventory systems and accounting software
  • Avoiding duplicate transactions

Inventory is one of my favorite puzzles to solve, but it can also be one of the most complicated parts of eCommerce accounting, depending on what your client sells and how they manage their products. The important thing is making sure your sales, inventory, and accounting tools are all working together instead of creating conflicting information.

The “too many apps” problem and knowing what to use

More tech does not always mean better results. If your tech stack is looking like 6 apps connected to Amazon, 3 inventory tools, 2 reporting platforms…and nothing quite ties together, the tools aren’t working for you. In fact, sometimes it creates duplicate data, sync errors, and confusion about what’s actually correct.

I’ve learned to step back and ask: “What do we actually need here?”

I look at the business:

  • How many platforms they sell on
  • Their monthly volume
  • How complex their inventory is
  • Their internal processes
  • Their comfort level with tech

Then build from there. Because a tech stack that works beautifully for one client might be a disaster for another. There is no one-size-fits-all solution. And sometimes the best solution is simplifying.

Automation is great, but accuracy comes first

I love automation. Anything that eliminates repetitive work and gives me more time to focus on my clients is worth exploring. But automation isn't something you can just set up and forget about.

Apps change, sales platforms update their processes, and clients change how they operate. We still need to understand what's happening behind the scenes and make sure everything is working as expected. Plus, you still need to review categorization, discrepancies, and integration settings regularly. Because apps don’t replace your understanding. They can’t explain margins, catch unusual trends, or help a client to make better decisions. That’s your role, and that’s where the real value is.

Final thoughts

Amazon accounting can feel overwhelming at first, but the right tools give you a solid foundation to build on.

If you're still working through settlement reports manually or trying to piece together a complicated tech stack, start with the basics. Find a reliable connector, simplify where you can, and build your processes around your client's needs.

At the end of the day, the goal isn't to have the most impressive tech stack or automate every process. It's to create accurate financial records, efficient workflows, and meaningful reporting.

When we spend less time manually entering transactions and troubleshooting messy data, we have more time to analyze profitability, identify opportunities, and help clients make informed decisions.

Amazon accounting is still a puzzle. We're just finding better tools to help put the pieces together.