Bookkeeping for Amazon Sellers in Canada
Amazon bookkeeping is not standard bookkeeping. FBA fee reconciliation, multi-marketplace tracking (Amazon.ca and Amazon.com), HST on domestic sales, inventory valuation, PPC advertising costs, returns and refunds, currency conversion and COGS calculation all require an accountant who understands the Amazon ecosystem. We handle all of it. From $150/month. T2 filed FREE. 900+ five-star reviews.
AFFORDABLE Bookkeeping Built for the Amazon Business Model
We work with Canadian Amazon sellers who are tired of explaining FBA fees to their bookkeeper. Your Seller Central settlement report has 40+ line items that most accountants have never seen: referral fees, FBA fulfilment fees, storage fees, removal order fees, reimbursements, advertising costs, subscription fees and currency conversion charges. Each one needs to be categorized correctly or your P&L is wrong, your COGS is wrong, your HST is wrong and your T2 is wrong.
We reconcile every Amazon settlement report to the penny, track inventory landed costs including duties and shipping, calculate HST on Amazon.ca sales, zero-rate Amazon.com exports and produce monthly financials that actually reflect how your Amazon business is performing. No hourly billing. Fixed flat fee.
Book Free Consultation
Why Amazon Seller Bookkeeping Is Different from Standard Bookkeeping
| Amazon Challenge | What Goes Wrong Without Specialized Bookkeeping | What We Do |
|---|---|---|
| Amazon settlement reports (bi-weekly) | Your bookkeeper records the net deposit only. All Amazon fees, refunds and adjustments are lumped into one number. You have no idea what you actually paid Amazon or where your money went. | We break down every settlement report line by line: product sales, referral fees, FBA fees, storage fees, advertising, refunds, reimbursements and adjustments. Each category tracked separately in your books. |
| FBA fees (15+ fee types) | FBA fulfilment fees, referral fees (8% to 15%), monthly storage fees, long-term storage fees, removal fees, disposal fees and labelling fees are not separated. Your true cost per unit is unknown. | We categorize every FBA fee type. You see exactly what Amazon charges per fee category per month. We calculate your true all-in cost per unit including landed cost, FBA fees and advertising. |
| Multi-marketplace (Amazon.ca + Amazon.com) | Revenue from Amazon.ca (CAD) and Amazon.com (USD) is mixed together. Currency conversion is not tracked. HST is applied incorrectly to US sales. Profit by marketplace is unknown. | We track Amazon.ca and Amazon.com as separate revenue streams. USD revenue converted at the actual settlement exchange rate. Profit calculated per marketplace. HST applied only to Amazon.ca domestic sales. |
| HST on Amazon.ca sales | Amazon collects HST from Canadian buyers on your behalf through the Marketplace Facilitator rules. Some sellers double-count the HST. Others miss claiming ITCs on their expenses. HST returns are filed incorrectly. | We reconcile Amazon-collected HST against your HST return. We claim every eligible ITC on FBA fees, shipping, inventory purchases, software subscriptions and advertising. Quick Method vs. Regular Method analyzed. |
| Inventory valuation | Inventory is not tracked properly. COGS is estimated or missing entirely. Unsold inventory sitting in FBA warehouses is not accounted for. Landed costs (duties, freight, customs brokerage) are expensed instead of capitalized. | We track inventory using FIFO or weighted average. Landed costs (product cost + freight + duties + customs brokerage) are capitalized into inventory. COGS is calculated per unit sold. Unsold FBA inventory is carried as an asset on the balance sheet. |
| Returns and refunds | Refunds reduce revenue, but the returned inventory is not added back to stock. COGS is overstated because the returned units were already expensed. Inventory counts are wrong. | We reverse the COGS on returned units and add the inventory back to stock. Refunds are tracked as a separate line item so you can see your return rate by product and by marketplace. |
| PPC advertising costs (Sponsored Products, Sponsored Brands) | Amazon PPC spend is deducted from your settlement but not tracked as a marketing expense. Your advertising cost of sales (ACoS) is unknown. You cannot calculate the true ROI of your ad spend. | We track PPC spend as a separate marketing expense. ACoS calculated per campaign and per product. Monthly ad spend reported alongside revenue so you can see the advertising ROI clearly. |
| Currency conversion (USD to CAD) | Amazon converts USD to CAD at their exchange rate, which is not the Bank of Canada rate. The conversion spread is a hidden cost. Foreign exchange gains/losses are not tracked. | We record USD revenue at the Amazon settlement exchange rate. Foreign exchange gains/losses are tracked separately. The conversion spread between Amazon's rate and the Bank of Canada rate is visible so you know the true cost of selling on Amazon.com. |
What Is Included in Our Amazon Seller Bookkeeping
| Service | What We Do |
|---|---|
| Amazon settlement report reconciliation | Every bi-weekly settlement report broken down line by line: product sales, shipping credits, gift wrap credits, referral fees, FBA fulfilment fees, storage fees, advertising costs, refunds, reimbursements and adjustments. Reconciled to your bank deposit. |
| FBA fee categorization and tracking | Every FBA fee type categorized separately: fulfilment fees, referral fees, monthly storage, long-term storage, removal, disposal, labelling. Monthly and YTD totals by fee type. |
| Multi-marketplace revenue tracking | Amazon.ca (CAD) and Amazon.com (USD) tracked as separate revenue streams. Profit and loss by marketplace. Currency conversion at actual settlement rates. |
| Inventory valuation and COGS | Inventory tracked using FIFO or weighted average. Landed costs capitalized (product cost + freight + duties + customs brokerage). COGS calculated per unit sold. Unsold FBA inventory carried as a balance sheet asset. |
| HST filing (Amazon.ca and expenses) | HST return prepared and filed every period. Amazon-collected HST reconciled. ITCs claimed on all eligible expenses (FBA fees, shipping, software, advertising, office supplies). Quick Method vs. Regular Method analyzed. |
| PPC advertising cost tracking | Amazon advertising spend tracked as a separate marketing expense. ACoS (Advertising Cost of Sales) calculated. Monthly ad spend vs. revenue reported for ROI visibility. |
| Returns and refund tracking | Refunds tracked separately. COGS reversed on returned units. Inventory adjusted. Return rate calculated by product and marketplace. |
| Monthly financial statements | Profit and loss, balance sheet and cash flow statement delivered monthly. Revenue by marketplace, COGS by product line, gross margin, FBA fees as a percentage of revenue, net profit after all Amazon costs. |
| Bank and credit card reconciliation | Every bank account and credit card reconciled monthly. Amazon deposits matched to settlement reports. Supplier payments matched to purchase orders. No unreconciled transactions. |
| T2 corporate tax return | Filed FREE for every bookkeeping client. Financial statements, T2, GIFI, all CRA schedules, e-filing and CRA audit support included at no additional charge. |
Amazon Seller Bookkeeping from $150/Month. T2 Filed FREE.
Settlement reconciliation, FBA fees, inventory, HST, PPC tracking, monthly financials. Fixed flat fee. No hourly billing.
Amazon Seller Bookkeeping: Real Client Results
Private Label Seller, Amazon.ca + Amazon.com
A Canadian Amazon seller with $340,000 in annual revenue across Amazon.ca and Amazon.com had no settlement report reconciliation. FBA fees, refunds and advertising were lumped into one "Amazon expense" line. We broke down 24 bi-weekly settlement reports, separated 8 fee categories, tracked PPC spend as marketing expense ($42,000/year) and discovered $6,200 in Amazon reimbursements the seller had not claimed. Monthly financials now show profit by marketplace, true COGS per unit and advertising ROI.
Wholesale FBA Seller, Amazon.ca
A wholesale Amazon.ca seller buying inventory from US suppliers was not capitalizing duties and freight into landed cost. COGS was understated by $18,000 per year because duties were expensed as "shipping" and freight was categorized as a general expense. We restructured the chart of accounts, implemented FIFO inventory valuation with proper landed costs and corrected the prior-year COGS. The seller's true gross margin was 28%, not the 41% previously reported.
Multi-Channel Seller, Amazon + Shopify
A Canadian seller operating on Amazon.ca, Amazon.com and Shopify was mixing all three channels into one revenue account. Inventory was not tracked per channel. Returns from Amazon were not reversing COGS. HST was being collected on Shopify but not reconciled against Amazon-collected HST. We set up 3 separate revenue streams, implemented per-channel COGS tracking, reconciled HST across all platforms and delivered channel-specific P&L reports monthly.
New Amazon FBA Seller, First Year
A new Amazon FBA seller launching with $45,000 in startup inventory had no bookkeeping system. We set up QBO from day one: Amazon settlement report integration, inventory tracking with landed costs, FBA fee categorization, HST registration (voluntary, to claim ITCs on startup inventory), PPC expense tracking and monthly financial reporting. The seller claimed $5,850 in ITCs on startup inventory and equipment in the first year.
How Amazon Seller Bookkeeping Works
Connect
We connect to your Amazon Seller Central, bank accounts, credit cards and supplier records. Settlement reports are downloaded and reconciled every period.
Categorize
Every settlement line item is categorized: revenue by marketplace, FBA fees by type, advertising spend, refunds, reimbursements and adjustments. Inventory purchases capitalized with landed costs.
Reconcile
Amazon deposits matched to settlement reports. Bank and credit cards reconciled. HST collected by Amazon reconciled against your HST return. ITCs claimed on every eligible expense.
Report
Monthly P&L by marketplace, gross margin by product line, FBA fee breakdown, PPC ROI, inventory valuation and cash flow. Financial statements ready for your T2 at year-end.
Amazon FBA Fee Categories We Track
| Fee Category | What It Is | Typical Range | How We Track It |
|---|---|---|---|
| Referral fee | Amazon's commission on every sale. Percentage of the selling price. | 8% to 15% depending on category | Tracked per settlement report. Monthly and YTD totals. Percentage of revenue calculated. |
| FBA fulfilment fee | Amazon's charge for picking, packing and shipping the order from the FBA warehouse. | $3.22 to $8.00+ per unit (varies by size and weight) | Tracked per settlement. Cost per unit calculated by product. Compared against FBM shipping cost for profitability analysis. |
| Monthly storage fee | Charged per cubic foot of space your inventory occupies in FBA warehouses. | $0.99 to $2.40/cubic foot (higher Oct to Dec) | Monthly storage cost tracked. Cost per unit in storage calculated. Alerts for slow-moving inventory approaching long-term storage thresholds. |
| Long-term storage fee (aged inventory surcharge) | Additional fee on inventory stored more than 181 days (aged inventory surcharge) or 365 days. | $0.50 to $6.90/cubic foot or $0.15/unit (whichever is greater) | Flagged in monthly reporting. Inventory aging analysis identifies products approaching the threshold so you can remove or liquidate before the surcharge hits. |
| Removal and disposal fees | Charged when you request Amazon to return or destroy unsold inventory. | $0.97 to $4.19 per unit (removal). $0.15 to $0.30 per unit (disposal). | Tracked as a separate inventory management expense. Volume flagged monthly. |
| Advertising (PPC) fees | Sponsored Products, Sponsored Brands and Sponsored Display costs deducted from your settlement. | Varies by category, keyword and bid strategy. Typically 10% to 30% of revenue for competitive categories. | Tracked as marketing expense. ACoS and TACoS calculated. Monthly ad spend vs. attributed revenue reported. |
| Subscription fee (Professional Seller) | Monthly Amazon Professional Seller account fee. | $29.99 CAD/month | Tracked as a fixed operating expense. |
| FBA inbound shipping | Cost of shipping inventory to Amazon FBA warehouses (paid to Amazon or third-party carriers). | Varies by weight, distance and carrier | Capitalized into inventory landed cost. Not expensed. Increases COGS only when the unit is sold. |
HST for Canadian Amazon Sellers: What You Need to Know
| Scenario | HST Treatment | What We Do |
|---|---|---|
| Amazon.ca sales to Canadian customers | Amazon collects and remits HST on your behalf under the Marketplace Facilitator rules. The HST is collected from the buyer and remitted by Amazon. You do not collect or remit HST on these sales yourself. | We reconcile Amazon-collected HST against your settlement reports. The revenue in your books is recorded net of HST (or gross with HST tracked separately). Your HST return reflects the correct treatment. |
| Amazon.com sales to US customers | Zero-rated exports. No HST collected. You charge $0 HST on goods sold to US customers through Amazon.com. However, you are entitled to claim full ITCs on all Canadian expenses related to those sales. | We zero-rate all Amazon.com revenue. Full ITCs claimed on Canadian expenses (inventory purchases, shipping, advertising, software, office rent). Amazon.com sellers are frequently in a net ITC refund position. |
| ITCs on FBA fees | Amazon charges HST on FBA fees billed to Canadian sellers. These are eligible ITCs. Many Amazon sellers do not claim ITCs on FBA fees because the HST is buried inside the settlement report. | We extract the HST component from every FBA fee line and claim it as an ITC. On $60,000/year in FBA fees, the recoverable HST is $6,903. Most self-filing Amazon sellers miss this entirely. |
| ITCs on advertising (PPC) | Amazon charges HST on advertising costs billed to Canadian sellers. Eligible ITC. | We claim ITCs on all PPC advertising spend. On $30,000/year in Amazon PPC, the recoverable HST is $3,451. |
| ITCs on inventory purchases from Canadian suppliers | HST paid on inventory purchased from Canadian suppliers is a fully recoverable ITC. | We track HST on every supplier invoice and claim ITCs. Inventory purchased from US or international suppliers does not have Canadian HST but may have import HST at the border (also recoverable). |
| Import HST on inventory from US/international suppliers | When inventory is imported into Canada, HST is assessed at the border by CBSA. This import HST is recoverable as an ITC. | We track customs broker statements and match import HST to your HST return. On $100,000 in imported inventory, the recoverable import HST is $13,000 (at 13% Ontario HST). |
| Quick Method vs. Regular Method | Amazon sellers with low expenses relative to revenue may save with the Quick Method (8.8%). Sellers with high COGS and FBA fees almost always save more with the Regular Method (full ITC recovery). | We calculate both methods annually. Most FBA sellers with significant inventory costs and FBA fees benefit from the Regular Method because ITCs on purchases, fees and advertising exceed the Quick Method savings. |
$6,903 in Missed ITCs on FBA Fees Alone: If your Amazon FBA fees total $60,000 per year and you are not claiming ITCs on the HST component, you are leaving $6,903 on the table every year. Add $3,451 in missed ITCs on $30,000 in PPC advertising and $13,000 in missed import HST on $100,000 in imported inventory, and the total missed ITCs can exceed $23,000 per year. We claim every eligible ITC for every Amazon seller client.
Amazon Seller Bookkeeping Pricing
| Amazon Revenue | Monthly Bookkeeping Fee | What Is Included |
|---|---|---|
| Under $100,000/year | From $150/month | Settlement reconciliation, FBA fee tracking, inventory (basic), HST filing, bank reconciliation, monthly financials, T2 filed FREE |
| $100,000 to $300,000/year | From $250/month | Everything above + multi-marketplace tracking, detailed inventory valuation (FIFO), PPC cost tracking, landed cost calculation, return/refund tracking |
| $300,000 to $500,000/year | From $400/month | Everything above + per-product profitability, channel-specific P&L (if multi-channel), inventory aging analysis, quarterly tax planning review |
| $500,000 to $1,500,000/year | From $600/month | Everything above + dedicated CPA, monthly review meeting, cash flow forecasting, supplier payment scheduling, growth analysis |
| Over $1,500,000/year | From $900/month | Full-service: weekly reporting, multi-channel (Amazon + Shopify + wholesale), inventory management, tax planning, payroll if applicable |
T2 Filed FREE for Every Amazon Seller Bookkeeping Client: Your T2 corporate tax return is included at no additional charge with every bookkeeping plan. Financial statements, T2, GIFI, all CRA schedules, e-filing and CRA audit support. No extra invoice at year-end. This is the most cost-effective approach because your books are current and organized when the T2 is due.
Frequently Asked Questions: Bookkeeping for Amazon Sellers
Meet Your Amazon Seller Bookkeeping Experts
Your Amazon books are managed and reviewed by licensed CPAs who understand the Amazon ecosystem, FBA fee structures and multi-marketplace compliance.
Sharad Gondaliya, CPA
Founder and Principal CPA. Oversees Amazon seller bookkeeping. Specializes in FBA fee reconciliation, multi-marketplace tracking, inventory valuation, HST compliance for e-commerce and T2 preparation for Amazon businesses.
Vandana Goel, CPA
Senior CPA. Manages bookkeeping for Amazon FBA and multi-channel sellers. Experienced in settlement report reconciliation, landed cost inventory tracking, import HST recovery and channel-specific profitability reporting.
What Our Clients Say
900+ five-star reviews from business owners across Ontario and Canada.
Amazon Seller Bookkeeping from $150/Month. T2 Filed FREE.
We reconcile every settlement report, track every FBA fee, value your inventory, file your HST and deliver monthly financials that show how your Amazon business is actually performing. 900+ five-star reviews.