High-level overview: I sell in the US and Europe, primarily on Amazon. I need to set up a Chart of Accounts in Xero, which will allow for detailed reporting and easy tax filing for VAT and US state sales tax.
I use A2X to automatically pull Amazon information into Xero. I have recently set up tax Jar as well.
I have a Chart of accounts set up currently but have doubts as to whether it is set up correctly.
In terms of my requirements for this setting up a Chart of Accounts:
Tax Filing is the primary requirement. If there are any tradeoffs you need to make in setting up a Chart of accounts, alway optimize for making the Tax Filing process easier.
* Make US State and federal income tax filing easy -
* Make European VAT filing easy - I store inventory in the UK but Sell on the following Amazon marketplaces: UK, Germany, France, Spain, Italy
I have a Tax Jar account. If you need or would like Access to that, I can give you access.
Managerial accounting requirements:
This is secondary to tax filing, as I have no investors to report to, and generally rely simple calculations to run my business rather than exact accounting. However, if it was easy to go into Xero and see the following things, it would be valuable.
I want to see:
Return on Assets - Total Earnings / Total Assets
* Business on Whole
* at the Product level
* Business on Whole
* Product level
* Per Month, Quarter, Year
Gross profit margin - Gross profit - COGS / Net sales
Cost of customer Acquisition -
Expenses - Note: I have yet to sync my business credit card with Xero. If it would be valuable to do this before you set up the Chart of Accounts, Please let me know
* The Monthly cost Software Subscriptions
* Advertising expense
* Broken down by channel (Amazon PPC, FB, Instagram, Adwords)
* Shipping cost
* From China to USA
* From shipping to FBA
* Per order shipping costs (typically from Amazon)
Cashflow statement on a monthly basis
Inventory TurnOver - Net sales / Average inventory Balance
I need to know which Amazon payments or expense go to which accounts, and set up A2X. Also, how to handle various credit card expense.
* When I’m unsure, how should I think about a expense (especially when negative); What questions should I ask?
What am I missing? You have worked with Ecommerce companies in the past, if there is anything I am missing please let me know.
December 13, 2017
I am looking for a mix of experience and value