Every seller on Amazon needs to keep track of their profit and loss. But, with inventories getting misplaced, reimbursement claims being delayed, and sellers having to comply with different rules and regulations, it becomes a tedious task to maintain a profit and loss statement that shows all the details of their transactions per month and on an annual basis. That’s where we come in.
Understanding Amazon Seller Central Profits and Losses
A profit and loss account is used to determine the revenues of the seller for a specific period. It also shows records of the amount of loss he/she has incurred during that time. The income generated from this statement is used to calculate various taxes. As one of the top-rated Amazon agencies offering end to end Amazon store management services, it is our duty to calculate the profit and loss of our client thoroughly. We don’t leave a single transaction off so that you get the most accurate information regarding your revenue and expenses.
Amazon Seller Central Services Offered
Apart from preparing profit and loss statements for different periods, we provide a variety of other services that will help to manage your Amazon seller account.
- LISTING CREATION
- MARKETING STRATEGIES
- INVENTORY MANAGEMENT
- PREPARING SALES REPORTS
- CREATING FBA SHIPMENTS
- PREPARING MONTHLY ACCOUNTING REPORTS
- INVENTORY ANALYSIS
Importance of Profit and Loss Statement
Even if you keep track of all your incomes and expenses, it is wise to crosscheck it with a professional team so that there are no missing transactions that you may have to answer while filing taxes. That’s where our service will come into play. Since you are a seller, you will have to produce your monthly and annual statements to calculate appropriate taxes.
Most importantly, our profit and loss statement allows Amazon sellers to understand the amount of inventory they should deal with. Often, when sellers handle bulk inventory, they end up misplacing a chunk in the Amazon warehouses. That is a straight-cut loss if you don’t manage to get the equivalent amount of money reimbursed. While reimbursement is possible, it usually takes a few weeks for Amazon to process your claim. So, when you have an idea of the amount of money involved in each inventory, you will be able to control the supply because stocking up may result in a loss.
Profit and Loss Factors on Amazon
Our objective while preparing your Amazon profit and loss account is to calculate the net profit. This provides your actual revenue for a specific period. In order to calculate the net profit, we consider several factors.
1. INCOME
This includes all your earnings from Amazon. From the cost of goods sold to revenues from reimbursements, we consider all income sources so that you get the most accurate net profit or loss figure. To calculate net profit, we deduct allowances and discounts, cost of sales from net incomes, overheads, and any other expenses that may affect your operating profit. This gives us your profit or loss before taxes. Depending on the income or loss, we will further calculate the amount of tax you need to pay. Once we get that figure, it is easy to calculate the net profit or loss.
2. EXPENSES
The critical part about preparing a profit and loss statement for an Amazon seller is calculating the expenses. There is more expense than income for Amazon sellers, and that’s why we have a team of highly experienced accountants who can tally the transactions and calculate the total expense of the seller for a period. We cover every operating cost involved in this business like FBA fees, selling fees, agency or consulting costs, ad costs, cost of goods, and company overheads. Once we get an accurate figure of your expenses, we deduct it from your total income to obtain the net profit or loss.
We have been in this business for a long time now. This allows us to follow the right procedure to calculate the profits and losses of Amazon sellers. All our services are tailor-made for our clients so that whenever you need our help, our accountants are ready to deliver. We assure you that once you experience the quality of our end to end account management service, you will stick with us for years to come.