8 Best Accounting Software For eBay Sellers in 2025 OJDS

This organization can lead to increased efficiency, speed and profitability in your online selling endeavors, or you can use software that will automate the tracking for you. An eBay Spreadsheet helps you stay organized by setting up listings, tracking profits, the prices and more. But with so many numbers to keep track of – inventory, price changes, eBay fees, shipping, and more – it’s easy to get overwhelmed. Most sellers go wrong with eBay taxes because they’re either overwhelmed by the details or relying on outdated, manual processes. Between IRS rules, sales tax compliance, and keeping clean records, it’s easy to feel lost. One common mistake among resellers is mixing personal and business finances.

Top-notch monthly bookkeeping

It lacks built-in inventory management and doesn’t integrate with as many e-commerce inventory apps such as Xero or QuickBooks. This means you’ll need to manually enter more data, or connect to Zappier and choose which data to import. Link My Books automatically syncs your eBay transactions with QuickBooks, categorizing everything from sales and refunds to fees and taxes. This automation not only saves you time but also reduces the risk of errors, so you can be confident that your books are always accurate.

It can also help you manage your business expenses to see how much profit you turn over compared to your inventory costs. This information will be necessary when creating your income statement, which shows how much you earn next to how much you spend. An income statement is an essential financial document to understand your eBay shop performance and report accurate taxes income. Plus, you can use your recorded transactions to see how much of a profit you make compared to your expenses and alter your budget accordingly. By tracking your sales, you can analyze your performance, improve your listings, and increase your profits.

It will consolidate your transactions, eBay fees, shipping and supplier data and sync that information directly to your Xero account. A2X is an automated eBay bookkeeping software created by eCommerce business owners for eCommerce business owners. A2X aims to provide solutions for faster and more accurate financial reconciliation.

Keeping financial records straight is important, and a sheet that’s tailored to the eBay system makes this easier. A basic accounting software plan can cost anywhere from nothing (with free-for-life software like Wave) to $30+ from a premium provider like QuickBooks. Some accounting companies only charge per month, such as QuickBooks, while others like FreshBooks give you a discount if you pay annually. Whether you’re getting accounting software for the first time or your old software no longer meets your needs, we can help.

What is the best accounting software for eBay sellers in 2024?

Sellers might also have other sales within the same account that do not qualify under the Marketplace Tax Rules, requiring them to manage VAT or other taxes themselves. Under these rules, eBay is responsible for collecting and remitting sales tax or VAT on qualifying transactions. However, as a seller, you remain responsible for reporting your total sales and ensuring compliance with your tax obligations. Spreadsheet templates can be a great starting point, particularly because they offer affordability, ease of use, and customization options.

Set aside time for accounting tasks

Ensuring correct tax application helps avoid penalties and ensures compliance with local tax laws. Financial reports provide valuable insights into sales performance, expenses, and profitability, helping sellers make informed decisions and optimise their financial strategies. Effective accounting for eBay sellers helps track inventory costs and ensures that the value of unsold stock is accurately reflected. This allows you to optimise stock levels and manage your product investments better.

As you buy and sell items on eBay, it’s essential to know what inventory and sales you have to accurately record your profits and expenses. This information can also help you make informed decisions about which items to restock or discontinue based on their performance. Bookkeeping is the process of recording, organizing, and managing financial transactions. As a reseller, this means keeping track of all your sales, expenses, and profits. It may sound overwhelming, but having proper bookkeeping is crucial for the success of your business. Not only does it help you stay on top of your finances, but it also provides valuable insights into your business’s performance.

But with the right preparations, you can anticipate what you’ll need to pay and set money aside for your tax expenses. Let’s walk through setting up a simple, effective spreadsheet to manage a business. Even a basic spreadsheet is better than nothing and these tips can help you become a more organized, profitable, and informed eBay seller. With your books, receive monthly analysis on your reports so you can know your numbers better and make smarter business decisions. We have to do this entry each year in order to match the ledger balance of Ebay which is very important. Nature – Ebay deduct TDS @1% under section 194O on all the sales made by the seller via Ebay.

Aside from being user-friendly and simple, it comes with a wide range bookkeeping for ebay sellers of tools that cater specifically to eBay sellers’ needs. This means you can immediately create an eBay accounting spreadsheet without investing a lot of time learning how to do it. Zoho Books is an excellent alternative to QuickBooks Online because of its simple layout and mass customization features. It also allows multiple users, so it makes collaboration within teams or business partners easier. You can also easily set up recurring invoices and manage multiple users.

Most accounting software charges extra for inventory management—but Xero includes inventory tracking with every plan, even its $13 Early plan. To remain compliant with tax regulations, eBay sellers must stay informed about the tax laws in their regions and any changes that may affect their business. This includes understanding Nexus laws, which determine where you must collect sales tax. Automated solutions and regular updates from tax authorities help ensure that your business adheres to all applicable tax regulations and avoids legal issues. You can track how much you have left of each product as you make sales and ship those products. With clear records, you can see how quickly you go through your stock and when you’ll need to restock.

• It shows total revenues, costs, and expenses, allowing you to determine your net profit or loss.
• It may sound overwhelming, but having proper bookkeeping is crucial for the success of your business.
• Dynamic currency conversion gives you an edge with the ability to adjust prices based on exchange rates and local market conditions.
• It’s about using the financial information to gauge the business’s performance and make informed strategic decisions.
• Sage streamlines invoicing, expenses, and inventory management, and offers e-commerce businesses customizable reporting capabilities.
• Efficient bookkeeping is important for eBay sellers to get an accurate financial picture of their business.

Amount – In order to find out the total withheld amount, you are required to filter the transaction report on “Withheld tax” as Type. Accounting Entry – As this is a payment to Ebay against the expenses/sales return, you are required to book it as payments in the accounting. Amount – In order to find out the total USD fees amount, you are required to filter the transaction report on “Other Fee” as Type and “Payment dispute Fee” as Description. You can use the closing monthly rate of USD to INR for posting the INR value of the transaction.

Shoeboxed’s key features include receipt scanning, expense tracking, and integration with accounting software like QuickBooks. After Shoeboxed organizes the receipts into a searchable online account, users can then sync their receipts with their QuickBooks Online account. Marketplace Facilitator Tax and VAT rules introduce added complexity to eBay accounting and bookkeeping. Under these rules, eBay collects and remits sales tax or VAT on behalf of sellers for certain transactions, shifting the burden of tax collection. Failing to match revenue with the correct period can lead to inaccurate financial reports. For example, if revenue and Cost of Goods Sold (COGS) aren’t aligned, it could misrepresent your profit margins.