E-commerce accounting – revenue, VAT and inventory management across channels

Where a traditional business might have 50-100 transactions per month, a webshop can have thousands. Each transaction can contain several elements – product sales, shipping, discount codes, VAT at different rates and payment fees. In addition, there are returns that must be recorded correctly.

We have experience in handling this complexity and setting up automated processes that keep your books up to date without manual entry of each individual order.

Most e-commerce companies sell via several channels – typically a combination of:

• Shopify – your own online store
• Amazon – marketplace
• Physical retail – your own shop or retail partners
• B2B sales – sales to companies

We bring all channels into one accounting system with a clear breakdown, so you can see performance, revenue and margin per channel.

If you sell to consumers in other EU countries, establish the VAT treatment for the particular sales. One Stop Shop (OSS) is an optional way to report and pay foreign VAT on eligible sales; it does not change which country’s VAT applies. We help assess the setup and reporting requirements. See the Danish Tax Agency’s overview of the rules and arrangements.

For sales outside the EU, we handle export documentation and VAT exemption.

For product-based companies, inventory is often the largest asset on the balance sheet. We ensure:

• Correct calculation of inventory value
• Calculation of cost of goods sold (COGS) to calculate an accurate gross margin
• Write-downs of obsolete goods
• Stock adjustments at the end of the period

Regardless of whether you use Stripe, Shopify Payments, PayPal or other payment solutions, we ensure correct reconciliation between the payment platform and your books. Read more about Stripe accounting.

We provide reporting adapted to e-commerce companies:

• Revenue per channel, market and product category
• Gross margin and cost of goods sold
• Shipping and return costs
• Marketing ROI (ROAS per channel)
• Cash flow planning that accounts for seasonal fluctuations

Do you run an e-commerce business and want to keep track of the books? Contact us for a no-obligation conversation about how we can help.

Read more: Shopify Accounting · Stripe accounting · Automation and integration