Accounting for Amazon Sellers – Inventory Management This Christmas

September 19, 2021

It may seem like a long way off, but Christmas is around the corner – and with many Australians no doubt planning to take to Amazon to get their Christmas shopping in, it's likely that Amazon e-commerce sellers, in particular, are already well into the swing of preparing for the festive rush.

But how can you best manage your inventory during this period of intense demand? This blog post will share some top tips from the team at 360 Accounting Services.

Budget and Forecast

Before the Christmas rush begins, it's essential to do some maths to ensure you know where you are with regard to your stock. There are a number of different calculations available, but one of the most important is your inventory turnover rate.

This calculation helps you see how fast you get through your stock. It's advisable to do this calculation earlier rather than later. Many people begin their Christmas shopping as early as October - so if you don't already have a handle on the figures, you need to do that soon.

Remember, though, that – depending on what you sell – you're likely to experience increased demand at Christmas. If you have previous years of data to use, it may be worth going through them to find out how much your inventory turnover rate surges during the Christmas season. If you don't have data, it could be wise to build in some buffer and perhaps earmark some additional inventory so that you don't sell out.

Explore drop shipping

Many Amazon sellers fulfil their orders directly by ordering the stock and storing it themselves before sending it out to the buyer. The dropshipping way, however, is different: this allows you to manage a storefront and process orders, but without actually handling the goods. Instead, the order is fulfilled directly by the warehouse to the customer – but with your branding on it.

One advantage of taking the dropshipping option during the Christmas rush is that you don't have to commit quite as deeply to your inventory purchases. If you can find a dropshipping inventory provider who is happy to be flexible, you can instead simply call on them as and when you get an order. There are some downsides, though. You may find that everyone else has the same idea, and you might not be able to bank on your dropshipping provider to fulfil orders if there is a rush of demand. Having your own stock circumvents that problem.

Launch some promotions – carefully

Promotions are a great way to get sales through the door – and at Christmas, it's even more likely that you'll want to get some promotions going. Why not consider something interactive, such as a Facebook giveaway?

However, it's important to not get too far ahead of yourself. If you launch a buy one get one free offer, for example, you need to be sure that you have double the level of stock required to cater to your expected demand. Again, calculations and advance planning is your friend here – so don't be afraid to get organised and arm yourself with knowledge about what stock you can access and when.

Use some Amazon integrations

Here at 360 Accounting Services, we're passionate about the role that Amazon integrations can play in helping sellers get organised with inventory management.

Integrations are an ideal way for your business to connect inventory and accountancy. The benefits are numerous: one of the main ones, however, is that it makes the communication of information between these two arms of your business pretty seamless. It means that you don't have to worry about getting it wrong, as you might have to do if you don't have an integration tool and you're going for a manual system. It's all automated, and the tracking is done entirely for you.

We've got a few preferred tools here at 360 Accounting Services. The Xero integration is one tool: this comes with a handy dashboard that allows you to see your position at a glance. Sellerlegend tool is also a good bet: it comes with amazing visualisation options.

The Christmas rush is just around the corner, so switching right now might not be advisable. But if you do want to make a change, why not speak to our friendly team and ask for an assessment of what the options are.

Do you need some assistance when it comes to accounting for your Amazon store? Here at 360 Accounting Services, we've helped loads of e-commerce merchants over the years – and we're happy to help you too. Get in touch today.

Sources:

https://osome.com/hk/blog/how-to-manage-inventory-for-amazon-sellers/

https://www.xero.com/au/why-xero/your-business/amazon-seller-accounting/

https://sellerlegend.com/about-us/

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Bookkeeping Tips for Professional Services

By 360Accounting Services • December 9, 2025

New Title

Bookkeeping Tips for Digital Technology

By 360Accounting Services • December 2, 2025

In today's fast-paced digital world, managing your finances effectively is more crucial than ever. For businesses leveraging digital technology, streamlined bookkeeping is not just a good practice—it's essential for sustained growth and success. Here are some top bookkeeping tips tailored for the digital age. Embrace Cloud-Based Accounting Software One of the most significant advancements in bookkeeping is the rise of cloud-based accounting software. Platforms like Xero, QuickBooks Online, and MYOB offer numerous benefits: ● Accessibility: Access your financial data anytime, anywhere, from any device with an internet connection. This is perfect for remote teams or business owners on the go. ● Real-time Updates: Get a live view of your financial health, allowing for quick and informed decision-making. ● Automation: Automate routine tasks such as invoicing, expense tracking, and bank reconciliations, saving you time and reducing errors. ● Integration: Seamlessly integrate with other digital tools you use, such as CRM systems, e-commerce platforms, and payment gateways. Digitise and Automate Expense Tracking Say goodbye to shoeboxes full of receipts. Digital tools make expense tracking effortless: ● Receipt Scanning Apps: Use apps like Receipt Bank or Expensify to capture receipt images on the go. These apps can extract key information and categorise expenses automatically. ● Direct Bank Feeds: Link your business bank accounts and credit cards to your accounting software to automatically import transactions. This reduces manual data entry and ensures accuracy. ● Categorise Consistently: Establish clear expense categories and apply them consistently to gain accurate insights into your spending patterns. Regular Bank Reconciliations Even with automation, regular bank reconciliations are vital. This process involves comparing your accounting records with your bank statements to ensure everything matches up. ● Catch Errors Early: Identify discrepancies or errors promptly, preventing them from escalating into larger issues. ● Prevent Fraud: Regular checks can help detect unauthorised transactions. ● Maintain Accuracy: Ensure your financial statements are accurate and reliable for tax purposes and financial reporting. Utilise Digital Invoicing and Payment Systems Streamline your accounts receivable with digital solutions: ● Electronic Invoicing: Send professional invoices directly from your accounting software via email. This is faster and more eco-friendly than traditional paper invoices. ● Online Payment Gateways: Offer clients various online payment options (e.g., credit card, PayPal, Stripe) to facilitate quicker payments and improve cash flow. ● Automated Reminders: Set up automated reminders for overdue invoices to reduce the time spent chasing payments. Implement Strong Cybersecurity Measures With all your financial data stored digitally, cybersecurity is paramount: ● Strong Passwords and Two-Factor Authentication (2FA): Protect your accounting software and other financial platforms with robust security measures. ● Regular Backups: Ensure your data is regularly backed up to prevent loss in case of a system failure or cyberattack. ● Educate Your Team: Train your employees on best practices for data security and how to recognise phishing attempts. Seek Professional Advice While digital tools empower you to handle much of your bookkeeping, there are times when professional guidance is invaluable. ● Tax Planning: A qualified accountant can help you navigate complex tax laws and optimise your tax strategy. ● Financial Analysis: Gain deeper insights into your financial performance and identify areas for improvement. ● Compliance: Ensure your business remains compliant with all relevant financial regulations. By integrating these bookkeeping tips into your digital technology framework, you'll not only save time and reduce stress but also gain a clearer, more accurate picture of your business's financial health, paving the way for sustained success. For more information or assistance, feel free to contact us at 360 Accountinsg Services via email at enquiries@360accountingservices.com.au

When to Seek Professional Financial Advice

By 360Accounting Services • November 26, 2025

As a small business owner, managing your finances can be a complex task. While effective bookkeeping is essential for day-to-day operations, there are specific situations where seeking professional financial advice can provide significant benefits and help ensure your long-term success. Key Indicators It's Time to Consult an Advisor It's important to recognise when your financial situation warrants more than just accurate record-keeping. Here are some common scenarios that suggest it's time to reach out to a professional financial advisor: ● Significant Business Growth: When your business experiences rapid growth, your financial structure often needs to evolve to keep up. An advisor can help you navigate increased revenue, new investments, and scaling operations. ● Complex Tax Situations: If your business has diversified income streams, international operations, or other complex tax implications, a financial advisor specializing in tax planning can help you optimize your tax strategy and ensure compliance. ● Major Business Decisions: Contemplating a significant investment, expansion, acquisition, or sale of your business? These decisions have profound financial implications, and professional advice can help you assess risks and opportunities. ● Cash Flow Challenges: While bookkeeping tracks cash flow, an advisor can help identify underlying issues causing consistent cash flow problems and develop strategies to improve liquidity. ● Personal and Business Financial Blending: Small business owners often find their personal and business finances intertwined. An advisor can help separate these and create clear strategies for both. ● Retirement or Succession Planning: Planning for your eventual exit from the business, whether through retirement or selling, requires strategic financial foresight. An advisor can help create a robust succession plan. ● Unexpected Financial Changes: Market downturns, sudden operational changes, or unforeseen expenses can create financial uncertainty. A professional can help you navigate these challenges and adapt your financial strategy. ● Lack of Financial Knowledge: If you find yourself consistently unsure about financial terminology, investment strategies, or long-term financial planning, it's a clear sign that professional guidance would be beneficial. What a Financial Advisor Can Offer A financial advisor offers a range of services that go beyond the scope of traditional bookkeeping: ● Strategic Planning: Developing long-term financial goals and creating a roadmap to achieve them. ● Investment Guidance: Advising on suitable investment opportunities for your business's growth and stability. ● Risk Management: Identifying and mitigating financial risks that could impact your business. ● Tax Optimisation: Crafting strategies to minimize tax liabilities legally and effectively. ● Succession Planning: Preparing for the smooth transition of business ownership. ● Budgeting and Forecasting: Assisting with more advanced financial projections and budget development. Next Steps If you identify with any of the scenarios above, don't hesitate to seek professional financial advice. A consultation with a qualified advisor can provide clarity, peace of mind, and a stronger financial foundation for your business. For a personalised consultation, contact us at enquiries@360accountingservices.com.au