A2X is an ecommerce accounting app. It helps businesses reconcile payouts from their sales channels in QuickBooks Online, Xero, or Sage.
A2X is the most accurate ecommerce accounting solution available today. It helps businesses increase their financial visibility and save hours each month.
Why is ecommerce accounting challenging?
Ecommerce payouts are different from traditional retail sales payments.
In traditional retail sales, the seller generally receives the money directly from the buyer. That way, there’s a clear connection between where the money has come from and what it was for.
This isn’t the case for ecommerce sales.
Ecommerce businesses receive payments in batches from their sales channels. This causes an array of accounting complications.
Accounting for ecommerce transactions is difficult because:
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All transactions are lumped together into batched payouts.
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There’s no clear timeline or cutoff for payments. One payout could cover multiple days, weeks, or months. It could also cover partial periods. For example, a day could be split into separate payouts.
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The payout doesn’t just cover sales. It could also include tax collected, shipping income, discounts, refunds, fees, disputes, pending payouts, and many other transaction types.
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One payout might cover multiple countries. We need to apply different tax rates.
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Transaction types aren’t always labeled correctly. It becomes difficult to identify them if they change or someone adds a new one.
To do correct accrual accounting, financial reporting, and tax compliance, we need to break down the batch payouts from sales channels. These sales channels include Amazon, Shopify, and other gateways. You need to break them down into the correct transaction types, time periods, tax rules, and locations.
You might think you can get this information from your sales channel. However, it’s not so straightforward. Sales channels generate reports that contain a lot of uncategorized raw data. Think of a spreadsheet with thousands and thousands of rows.
So, the ecommerce merchant has to try and split out the data manually in a spreadsheet.
At worst, this is near impossible. At best, it’s incredibly time-consuming and error-prone.
Even if the ecommerce merchant manages to get the numbers close, they would then need to create manual entries in their accounting system every time they receive a payout. And they would still have a residual balance that isn’t accounted for.
When it comes to paying tax, making financial decisions, calculating margins, or even valuing your business, close enough isn’t good enough.
How do you automate ecommerce accounting?
A2X transforms payout data from Amazon, Shopify, eBay, Etsy, and Walmart into organized summaries. These summaries reconcile perfectly in Xero, Quickbooks Online, or Sage.
It automatically categorizes sales, fees, taxes, and refunds. It organizes the transactions into summaries. The summaries perfectly match the payout deposits in your accounting software. This allows you to reconcile payouts in just one click.
With A2X, you’ll:
- Automate a time-consuming monthly process
- Always pay the right amount in taxes
- Get a better view into your financials with a more detailed Profit & Loss Statement (P&L)
- Have confidence in the accuracy of your books
Why do the top ecommerce businesses trust A2X?
The most accurate solution
A2X doesn’t just transfer data from your sales channels to your accounting software. First, it makes sense of the data. We group your transactions into the correct categories and time periods. Tax rules are applied. We batch the transactions into summaries. These summaries match the payouts in your bank feed for reconciliation.
Get your books up to date in no time
Unlike trying to organize raw data manually, with A2X, there’s no room for error, no time wasted, and no manual entries. A2X can also fetch historical data if you’re behind in your bookkeeping.
Reliable
A2X leads the way in ecommerce accounting. It has experience reconciling millions of ecommerce transactions across different countries, currencies, and tax jurisdictions.
Customizable
You have the power to customize A2X for your specific accounting needs. From account codes, tax rules, transaction categories, and more. A2X gives you as much or as little control as you need.