Question 1

What does bookkeeping for an e-commerce or Amazon/Shopify seller involve?

Accepted Answer

E-commerce bookkeeping breaks each platform payout into its parts, gross sales, processing and platform fees, refunds, chargebacks, shipping and taxes, reconciles those payouts to your bank, tracks inventory and cost of goods sold with landed costs, handles multi-province GST/HST, and separates marketplace-collected tax from what you self-collect. Recording the net deposit as revenue hides your true sales and costs. We build the books around how you actually sell online.

Question 2

Why is e-commerce bookkeeping different from other businesses?

Accepted Answer

An online seller has revenue across multiple platforms, fees deducted before payouts land, customers in different provinces at different tax rates, inventory that moves constantly, and often USD sales banked in CAD, so ordinary bookkeeping misses the real numbers. The payout, tax and inventory mechanics are distinct. We build the books around how a multi-channel online store actually operates.

Question 3

How do you reconcile Shopify and Amazon payouts?

Accepted Answer

We record gross sales, then the processing fees, platform fees, refunds, chargebacks and shipping as separate line items, and reconcile each payout to the deposit that lands in your bank. Shopify pays on a rolling schedule and Amazon settles about every 14 days, so we reconcile by payout, not by order. This is how your P&L shows real revenue and true costs.

Question 4

Why can't I just record my bank deposit as revenue?

Accepted Answer

Because a platform deposit is already net of fees, refunds, chargebacks, shipping and taxes, so recording it as revenue understates your actual sales and hides your real cost structure, making your P&L useless for decisions. A hundred-dollar sale can land as roughly ninety-seven dollars after fees. We record the gross-to-net so your margins are real.

Question 5

How do you handle inventory and cost of goods sold?

Accepted Answer

We track inventory and calculate cost of goods sold as opening inventory plus purchases minus closing inventory, so only sold stock reduces profit and unsold stock stays on the balance sheet. Deducting stock when purchased instead of when sold misstates profit and tax. We keep inventory and COGS accurate and reconciled to your platform reports.

Question 6

Do you track landed costs on imported inventory?

Accepted Answer

Yes. We include duty, freight, customs brokerage and other landed costs in the cost of your inventory, not just the invoice price, so your cost of goods sold and gross margin are accurate. Leaving freight and duty out understates COGS and overstates margin. We capture the full landed cost so your product profitability is real.

Question 7

How is GST/HST handled for an online store?

Accepted Answer

We apply GST/HST based on where the product is delivered, not where your business is, so an Ontario seller shipping to Nova Scotia charges 15 percent, not 13, and we reconcile what was collected against what you must remit. Multi-province place-of-supply is where sellers go wrong. We code every order to the correct provincial rate and file the return.

Question 8

How does GST/HST work when Amazon collects it?

Accepted Answer

Under the marketplace-facilitator rules, Amazon and some other platforms collect and remit GST/HST on marketplace sales to Canadian buyers, and you must not include that tax on your own return, so we separate marketplace-collected from self-collected on every filing. Double-reporting is the number one multi-channel filing error. We reconcile the settlement reports so it is handled correctly.

Question 9

Do I still need to register for GST/HST if Amazon collects it?

Accepted Answer

Possibly yes. Even when a marketplace handles the tax on its sales, you may still need your own registration if you sell through other channels, your total worldwide taxable supplies exceed the thirty-thousand-dollar threshold, or you want to claim input tax credits. Whether you must register is confirmed for your situation. We assess it and handle the registration where required.

Question 10

How do you handle sales to US and international customers?

Accepted Answer

Sales of goods to customers outside Canada are generally zero-rated, so you charge no GST/HST but claim full input tax credits on your Canadian costs, which often puts sellers with significant export revenue in a net refund position. Export documentation must be kept to support the zero-rating. We record exports correctly and structure filings to recover ITCs.

Question 11

Can you keep my books current if I have fallen behind?

Accepted Answer

Yes. Sellers often fall behind while scaling. We bring the bookkeeping current, rebuild the payout reconciliations, inventory and GST/HST, reconcile the bank and platform reports, and then keep it current going forward. Catch-up first, then ongoing, so your books are reliable for tax, financing and CRA.

Question 12

How often should an online seller's books be updated?

Accepted Answer

Monthly at least, because payouts, fees, inventory and multi-province HST all move constantly and CRA now receives platform sales data to cross-check against your return. Waiting until year end hides margin problems and complicates the filings. We keep your e-commerce books on a monthly cycle so the numbers and the tax stay current.

Question 13

Do you use QuickBooks or Xero for e-commerce bookkeeping?

Accepted Answer

We work in QuickBooks Online and Xero, configured for e-commerce with an online-seller chart of accounts, and we connect Shopify, Amazon Seller Central and your payment processors so data flows in and your bookkeeper reviews rather than re-keys it. Where you have no software, we set it up. We keep the integrations accurate and reconciled.

Question 14

Can you handle multiple sales channels at once?

Accepted Answer

Yes. Many sellers run Shopify, Amazon, eBay, Walmart and their own site at once, each with its own fees, payouts and reports, and we consolidate them into one accounting system so you see total revenue, per-channel margin and your combined tax position. Multi-channel needs the right structure. We build it so every channel and the whole business are clear.

Question 15

How do you handle multi-currency and USD sales?

Accepted Answer

When you sell in USD but bank in CAD, each payout has two numbers, the USD sale and the CAD amount that lands, so we record the sale at a consistent rate, the deposit at the actual bank amount, and book the difference as a foreign-exchange gain or loss. Recording USD at the wrong rate compounds errors. We keep the FX accurate each period.

Question 16

What reports do you provide to an online seller?

Accepted Answer

We provide per-channel and per-product margin, gross-to-net revenue with fee analysis, shipping position, inventory valuation, cost of goods sold and the usual financial statements, so you see true profitability rather than a deposit figure. Generic reporting hides the fee and margin detail. We tailor the reporting to how you run the store.

Question 17

Do you track platform and payment fees?

Accepted Answer

Yes. We record Shopify, Amazon and payment-processor fees, referral and FBA fees, storage and advertising as their own line items, so your true costs are visible and the input tax credits on them are claimed. Missed fees and missed ITCs quietly erode margin. We capture them so your P&L and your HST return are both accurate.

Question 18

How does good bookkeeping help me get financing or sell my store?

Accepted Answer

Lenders and buyers rely on clean, current financials and accurate margins to assess an online business, and messy books or netted revenue slow or block a deal. Well-kept e-commerce bookkeeping produces the statements and per-channel numbers they expect. We keep the books in the shape financing or a sale requires.

Question 19

Do I need to charge PST or QST in some provinces?

Accepted Answer

Possibly. If your sales into British Columbia exceed the provincial threshold you may need to register for and collect BC PST, Quebec requires QST registration for non-resident sellers making taxable supplies there, and Saskatchewan and Manitoba have their own rules. These obligations are confirmed for your situation. We assess them and handle the registrations and filings where required.

Question 20

Do you handle dropshipping?

Accepted Answer

Yes. In dropshipping you generally hold little or no stock, so there is little inventory asset and cost of goods is recognised as each order is fulfilled by the supplier, which is simpler on inventory but still needs accurate COGS matched per sale. It differs from a stock-holding FBA model. We set the bookkeeping up to fit whichever model you run.

Question 21

Should my e-commerce business use accrual accounting?

Accepted Answer

Generally yes. An inventory-holding business is normally required to use accrual accounting, which matches cost of goods sold to the sales it relates to rather than cash accounting, giving a true picture of profit and meeting tax expectations. Cash accounting distorts a stock business. We set up accrual bookkeeping so your profit and tax are right.

Question 22

How do you handle refunds, chargebacks and discounts?

Accepted Answer

We record refunds, chargebacks and discount codes as their own line items rather than letting them disappear into a net payout, so your true gross sales and the real cost of promotions are visible. Sellers are often surprised how much discounts and refunds cost them. We surface them so you can see and manage their effect on margin.

Question 23

How do you price e-commerce bookkeeping?

Accepted Answer

We quote a flat monthly fee based on your channels, transaction volume, inventory, currencies and the reporting you need, so you know the cost upfront with no hourly billing. Catch-up work, if needed, is quoted separately before we start. All fees include HST. We give you a clear, fixed quote after understanding how your store operates.

Question 24

What records do I need to provide for e-commerce bookkeeping?

Accepted Answer

You provide platform settlement and payout reports, payment-processor statements, bank statements, supplier and import invoices with duty and freight, inventory counts and any advertising statements, ideally through connected feeds or our secure portal. The more complete the records, the more accurate the margins and tax. We give you a clear checklist and a simple way to submit everything.

Question 25

Is my financial information kept confidential?

Accepted Answer

Yes. Your financial information is handled confidentially and shared only with the CRA and provincial authorities as required and with anyone you authorise, such as a lender. Confidentiality is fundamental to how a CPA firm operates. We protect your information throughout the engagement, and everything moves through our secure portal.

Question 26

Do you serve e-commerce sellers across Ontario and Canada?

Accepted Answer

Yes. We keep e-commerce bookkeeping for online sellers across every Ontario city and Canada, working entirely remotely through cloud accounting, platform feeds and a secure portal, so there are no distance limits and no extra fees. Wherever you sell from, we can keep the books. We serve online sellers GTA-wide and nationally.

Question 27

Does CRA receive my platform sales data?

Accepted Answer

Yes. Major platforms now report seller sales data to the CRA, which cross-references the reported gross sales against the income on your T1 or T2, so a mismatch invites a review. Every dollar of e-commerce sales must be reported. We keep your books reconciled to the platform reports so what you file matches what the CRA already sees.

Question 28

How do you handle gift cards and store credit?

Accepted Answer

We record gift cards as a liability when sold and as revenue when redeemed, and track store credit, so revenue lands in the right period and is not double-counted between online and any retail channel. Gift cards booked as sales overstate revenue. We record them correctly so your sales figures stay accurate.

Question 29

Can Gondaliya CPA handle my e-commerce bookkeeping?

Accepted Answer

Yes. We reconcile your Shopify and Amazon payouts gross-to-net, track inventory, COGS and landed costs, handle multi-province GST/HST and marketplace-collected tax, manage FX, and coordinate your corporate tax, so your books are accurate and CRA-ready. See our e-commerce accounting and Amazon FBA and Shopify seller pages. Fees are an AFFORDABLE flat amount including HST, quoted upfront, paid by Interac e-Transfer to info@gondaliyacpa.ca, auto-deposit enabled, security question Not Applicable.

Question 30

How do I get started?

Accepted Answer

Please book a free consultation and tell us which platforms you sell on, whether you hold inventory or dropship, whether you sell in USD or cross-border, and the state of your current books. We confirm what your e-commerce bookkeeping needs, quote a flat monthly fee, and set out what we need to begin. Book Free Consultation

Consideration	Ordinary Bookkeeping	E-Commerce Bookkeeping
Revenue	Net deposit booked as sales	Gross sales, fees and taxes broken out
Inventory	Stock expensed when bought	COGS matched to sales with landed costs
Sales tax	One rate for everyone	Correct rate by delivery province
Marketplace tax	Double-reported	Marketplace-collected separated from self-collected
Currency	USD booked at wrong rate	FX recorded, gain or loss booked

Item	Why It Matters for Your Store	How We Handle It
Payout reconciliation	The net deposit hides your real revenue	Gross sales, fees and taxes broken out
Inventory and COGS	Wrong COGS misstates profit and tax	Opening plus purchases minus closing, landed costs
Multi-province tax	Rate depends on the delivery province	Correct place-of-supply rate on every order
Marketplace tax	Double-reporting is the top filing error	Marketplace-collected separated from self-collected
Foreign exchange	USD banked in CAD creates errors	Sale and deposit recorded, FX gain or loss booked
Platform data	The CRA cross-checks platform sales	Books reconciled to the platform reports
Current records	Year-end reconstruction is costly and error-prone	Books kept current on a monthly cycle

Included	What We Do
Payout reconciliation	We break each payout into gross sales, fees, refunds and taxes.
Platform integration	We connect Shopify, Amazon and your processors to the books.
Inventory & COGS	We track inventory and landed-cost cost of goods sold.
Fees & ITCs	We record platform and payment fees and claim the ITCs.
Multi-province GST/HST	We charge the right rate by province and file the return.
Multi-currency & FX	We record USD sales and CAD deposits and book the FX.
Per-channel reporting	We report per-channel and per-product margin each period.
Corporate tax coordination	We hand the year-end straight to the T2 from the same office.

#	Mistake	Why It Hurts	How We Prevent It
1	Recording net payouts as revenue	Your real sales and costs are hidden	Gross-to-net broken out on every payout
2	Expensing stock when bought	Profit and tax are misstated	COGS matched to sales with landed costs
3	One tax rate for every province	Wrong GST/HST collected and remitted	Correct place-of-supply rate per order
4	Double-reporting marketplace tax	You remit the tax twice	Marketplace-collected separated from self-collected
5	Ignoring platform fees and ITCs	Margin and recoverable HST are lost	Fees recorded, every eligible ITC claimed
6	No foreign-exchange tracking	USD errors compound over time	FX recorded and gain or loss booked
7	Mixing personal and business money	Distorts the books and the tax position	Clean separation maintained
8	Leaving books until year end	Costly reconstruction and a CRA mismatch	Books kept current on a monthly cycle

Service	Fee	Includes
Monthly e-commerce bookkeeping	Quoted upfront	Payout reconciliation, inventory, fee tracking and per-channel reporting.
Bookkeeping plus GST/HST filing	Quoted upfront	Monthly books with multi-province HST reconciled and the return filed.
Bookkeeping plus corporate tax	Quoted upfront	Books with the T2 prepared from clean, reconciled records.
Catch-up bookkeeping	Quoted upfront	Payouts, inventory and HST brought current before ongoing work.
Free consultation	FREE	Scope review and exact flat-fee quote before any work begins.

Bookkeeping Services for E-Commerce & Amazon/Shopify Sellers

AFFORDABLE Bookkeeping Services for E-Commerce & Amazon/Shopify Sellers

Our E-Commerce Bookkeeping Services

Payout Reconciliation

Inventory & COGS

Platform & Payment Fees

Multi-Currency & FX

Multi-Province GST/HST

Per-Channel Profitability

E-Commerce Bookkeeping by a Licensed CPA

Gross-to-Net Payout Reconciliation

Inventory and Cost of Goods Sold

Fees, Refunds and Multi-Currency

Multi-Province GST/HST and Exports

CRA Matching and Import Records

Reporting and Year-End Handover

Free E-Commerce Bookkeeping Consultation

Free E-Commerce Bookkeeping Consultation

Case Studies: E-Commerce Bookkeeping

Shopify Fashion Brand, Toronto (Gross-to-Net)

Amazon FBA Seller, Mississauga (Payouts & COGS)

Multi-Channel Seller, Brampton (GST/HST Fixed)

Cross-Border Seller, Ontario (FX + Corporate Tax)

Ordinary Bookkeeping vs E-Commerce Bookkeeping

What Proper E-Commerce Bookkeeping Must Cover

What Is Included in Our E-Commerce Bookkeeping Service

The E-Commerce Bookkeeping Mistakes We Prevent

Why Choose Gondaliya CPA for Your E-Commerce Bookkeeping?

Built Around Your Payouts

Licensed CPA Firm

E-Commerce Experience

AFFORDABLE Flat Fee

Transparent Flat-Fee Pricing

How It Works

Consult

Setup and Catch-Up

Monthly Bookkeeping

Reports and Year-End

E-Commerce Bookkeeping: Cities We Serve

Frequently Asked Questions

Meet Your E-Commerce Bookkeeping Team

Sharad Gondaliya, CPA

Vandana Goel, CPA

What Our Clients Say

Related Industries We Serve

Get E-Commerce Bookkeeping Built Around Your Payouts.

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