One of the most overlooked parts of running an Amazon business is proper accounting. Many Amazon sellers try to handle everything themselves at first or hire a standard accountant who has no real understanding of how Amazon operates. This usually leads to incorrect VAT filings, poor financial tracking, and confusion when it comes to Amazon fees and reports.
Running an Amazon business is completely different from a standard retail or service business. Amazon operates on its own internal reporting structure with specific fees, reporting and complex VAT subjects. This is why using an Amazon specialist accountant is not just helpful, it is essential if you want to stay compliant, understand your numbers and scale properly.
Why You Need an Amazon Specific Accountant
A general accountant may understand basic book keeping and VAT returns, but Amazon accounting is far more detailed. An Amazon specific accountant understands:
- Amazon settlement reports
- Amazon VAT treatment across UK/EU regions
- Zero-rated and standard-rated products
- Reverse charge implications
- How to read reports in Seller Central and Link My Books
- Cash flow vs settlement timing differences
These are not things a traditional accountant will automatically understand. If they do not specialise in Amazon, they will likely struggle to interpret your financials, which can easily cause mistakes in VAT filings or yearly tax submissions.
VAT Returns and Amazon Compliance
If you are VAT registered or are approaching the VAT threshold, it is critical that your accountant understands how Amazon treats VAT. For example:
- Amazon service fees include VAT
- Some categories are zero-rated while others are standard-rated
- EU sales require proper handling for OSS or distance selling rules
- VAT must be calculated correctly per shipment region
- Incorrect filings can result in fines or delayed payouts
An Amazon specialist accountant will ensure VAT is handled accurately and submitted on time. They will also help you prepare for VAT registration if you are approaching the threshold, so you do not get caught out.
Accounting Software and Automation
Modern Amazon accountants will use automated software such as Xero paired with tools like Link My Books. This setup links your Amazon settlement reports directly into your accounting software, breaks everything down into clear categories and saves significant time.
A proper structure would include:
- Xero as your accounting hub
- Link My Books for automated Amazon settlement breakdowns
- Direct categorisation of Amazon fees, product costs, income and refunds
- Clean and accurate records ready for tax and VAT filing
Without these systems, bookkeeping becomes messy, inaccurate and time consuming.
My Recommendation: RT Accounting
Personally, I use RT Accounting, and I fully recommend them. They have helped me with every aspect of my Amazon accounting from VAT returns, business structure advice, expense categorisation and settlement breakdowns, to year end filings and compliance checks.
They respond quickly, even outside normal working hours. I have had replies from them late at night, early in the morning and even at weekends. Their support is ongoing, clear and reliable.
They currently charge around £80 per month, which is more than justified considering the time saved and the security of knowing everything is handled correctly.
Benefits of Using an Amazon Specialist Accountant
- Correct VAT handling
- Accurate profit calculation
- Proper fee tracking
- Clean financial breakdowns
- Support for growth and scaling
- Easier loan or funding applications due to clean financials
- Peace of mind during vat and tax periods
- No risk of HMRC penalties due to incorrect submissions
Final Thoughts
If you are serious about running an Amazon business and want to avoid costly mistakes, you need an accountant who fully understands how Amazon works internally. Trying to handle everything yourself or relying on a general accountant who does not understand Amazon fees, settlement timings or VAT treatment will eventually cost you time, money and stress.
Using dedicated software like Xero combined with Link My Books, along with a specialist accountant such as RT Accounting, will allow you to run your Amazon business correctly, stay compliant and scale with confidence.
If you are currently doing your own books or using a general accountant, now is the time to consider switching to someone who truly understands Amazon.
