Ecommerce accounting covers the bookkeeping, VAT and reporting work specific to online sellers — multi-channel sales reconciliation, marketplace fee treatment, inventory valuation, cross-border VAT including OSS and IOSS, and payment-processor settlements that never match gross sales.
What makes ecommerce accounting different
Running an online business means managing a high volume of transactions across multiple platforms and jurisdictions. At Brooks Lawford, we bridge the gap between digital sales and financial compliance. Whether you are selling on Amazon, Shopify, or eBay, we integrate your store with cloud accounting software like Xero and QuickBooks to automate data flow and reduce manual errors.
This is the work ecommerce accountants do that general practice does not. The difficulty is rarely the volume itself. It is that the number shown in a platform dashboard is not the number that reaches the bank, and the gap between the two is made up of fees, refunds, advertising costs and settlement timing. Accounts built on the dashboard figure are wrong before they start.
Multi-channel sales reconciliation
Marketplace settlements arrive net of fees, refunds and advertising costs. Reconciling each payout back to the underlying orders is what makes revenue, VAT and margin reportable rather than estimated. We manage the messy data from Stripe, PayPal, and Adyen to ensure every penny is accounted for, and reconcile it against the sales recorded in each channel.
VAT for online sellers: UK, OSS and IOSS
Since Brexit, UK sellers shipping goods to EU consumers generally deal with import VAT in the destination country. The One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes allow those sales to be reported through a single registration rather than a registration in each member state. Which scheme applies depends on where stock is held and on the consignment value. We handle cross-border VAT and keep registrations aligned with UK and EU requirements — see our tax compliance services and cross-border services.
Inventory and cost of goods sold
Tracking cost of goods sold accurately is what turns a sales figure into a margin. Stock held in a fulfilment centre remains your asset until it sells, so it stays on the balance sheet, and its valuation drives both reported profit and the tax position that follows from it.
Marketplace fees, refunds and chargebacks
Referral fees, fulfilment fees, storage charges, refunds and chargebacks each land differently in a settlement report. Treating them as a single deduction hides where margin is actually going. Separating them is the difference between knowing a channel is profitable and assuming it.
Which platforms we work with
As ecommerce accountants we work with sellers on Shopify, Amazon, eBay, Etsy, WooCommerce and their own checkouts, and with the payment processors behind them including Stripe, PayPal and Klarna. Day-to-day record keeping sits alongside our wider bookkeeping and accounting services.
We help you turn raw data into strategic insights, allowing you to focus on sourcing products and scaling your digital presence.
Frequently asked questions
Do I need a specialist accountant for my ecommerce business?
Not always, but the risk areas are specific. Marketplace settlements arrive net of fees, refunds and advertising costs, so gross sales in your platform dashboard rarely match the cash in your bank. An accountant who reconciles those daily gets your VAT and margin right; one who does not, will not.
How is VAT handled when I sell to customers in the EU?
Since Brexit, UK sellers shipping goods to EU consumers generally deal with import VAT in the destination country. The One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes let you report those sales through a single registration rather than registering in each member state. Which applies depends on where your stock sits and the consignment value.
How do I account for stock held in Amazon FBA warehouses?
Stock in a fulfilment centre remains your asset until sold, so it stays on your balance sheet. If Amazon moves that stock to a warehouse in another country, you may create a VAT registration obligation there. Both the valuation and the VAT position need reviewing each period.
Which ecommerce platforms and tools do you work with?
We work with sellers on Shopify, Amazon, eBay, Etsy, WooCommerce and their own checkouts, and with the payment processors behind them including Stripe, PayPal and Klarna.
When should an online seller register for VAT?
Registration is required once taxable turnover passes the UK VAT threshold in any rolling 12-month period, or if you expect to pass it within the next 30 days. Sellers who store goods in the UK from overseas may need to register from their first sale.
Request a quote or get in touch to discuss your channels, VAT position and reporting needs.
