406 Consulting Group
E-commerce accounting — multi-channel reconciliation, economic nexus, landed-cost COGS
Industry

Your Revenue Is Real. Your COGS Should Be Too.

E-commerce accounting is not like regular business accounting. Inventory, platform fees, sales tax nexus, and multi-channel reconciliation require specialized systems — and most bookkeepers don't have them.

Why E-Commerce need specialized accounting

E-commerce accounting is fundamentally different from traditional business accounting. The complexity isn't in the growth story — it's in the systems. You're managing inventory across multiple platforms and fulfillment centers. Revenue comes in from Amazon, Shopify, Etsy, WooCommerce, and direct channels simultaneously, each with different fee structures, payout schedules, and accounting treatment.

Multi-channel reconciliation is a full-time job without the right systems. Amazon, Shopify, and Etsy all net out fees, refunds, chargebacks, and advertising costs before depositing. Add the complexity of sales tax nexus — economic nexus rules mean you may owe sales tax in states where you've never set foot.

Cash flow compounds the challenge. You're growing fast and revenue looks great — but cash is always tight. The culprit is usually inventory purchases, platform payout timing, and advertising spend that outpaces collections. We build the systems that separate real profit from cash flow noise.

Common pain points we solve

Inventory valuation chaos: COGS is the most important number in your business — and the hardest to track
Platform fee reconciliation: Amazon, Shopify, and Etsy all net out fees, refunds, chargebacks before depositing
Sales tax nexus exposure: economic nexus rules mean you may owe sales tax in states you've never visited
Cash flow vs. profit confusion: growing fast and revenue looks great but cash is always tight
COGS accuracy: if you're not tracking landed cost, your gross margin is wrong and your taxes may be wrong
Multi-channel revenue consolidation: three platforms means three reporting systems and three payout schedules
Returns & refund accounting: high return rates create complex entries that most bookkeepers handle incorrectly
Advertising spend attribution: PPC, Meta, and Google Shopping spend needs to be tracked against revenue by campaign

What we do for E-Commerce

  • Monthly bookkeeping with COGS tracking
  • Inventory valuation (FIFO, LIFO, weighted average)
  • Platform payout reconciliation (Amazon, Shopify, Etsy, etc.)
  • Sales tax nexus analysis & compliance support
  • Multi-channel revenue consolidation
  • Landed cost calculation & product margin analysis
  • Cash flow forecasting for inventory cycles
  • Advertising spend tracking & ROI reporting
  • Returns & refund accounting
  • Year-end tax preparation & entity structure review
  • CFO advisory for scaling brands

The metrics we track

  • Landed cost tracked per SKU — true gross margin by product revealed
  • Platform payouts reconciled with full fee breakdown
  • Sales tax nexus analysis complete with filing calendar
  • 13-week cash flow forecast tied to inventory purchase cycles
  • Consolidated P&L across all sales channels
  • COGS accuracy at the product level

Frequently asked questions

Related services

BookkeepingPayrollControllerCFOAdvisoryTax Preparation

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