The Best Accounting Software for eBay Sellers

The balance in your bank account is rising, so your eBay store must be thriving… right?

The only way to actually tell how your eBay store (or, any business venture) is performing is to practice accurate accounting.

Accurate accounting and bookkeeping will help you get critical insight into your business’s cash flow, build and review your P&L and Balance Sheet, and ultimately understand your profitability and help you make better business decisions.

So, if you’re searching for “the best accounting software for eBay sellers”, or something along those lines, you’ve come to the right place.

This article will guide you through the best accounting software options available for eBay sellers. We’ve validated each solution with top ecommerce accounting and bookkeeping experts, so you can say that these tools are “accountant approved”.

Integrate eBay and your accounting software for accurate accounting

A2X auto-categorizes your eBay sales, fees, taxes, and more into accurate summaries that make reconciliation in your general ledger a breeze.

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What is the best accounting software for eBay sellers?

A number of accounting software choices are available to eBay sellers; however, since each eBay business is unique, no “best” option truly exists.

So, how do you select an accounting software solution that best fits your eBay store’s needs?

We’ll examine these popular accounting software solutions for eBay sellers (unordered):

• QuickBooks Online
• Xero
• Sage
• NetSuite

While evaluating each possibility, consider your eBay store’s specific requirements and how effectively a solution might meet them.

For instance, you may want to assess whether the accounting software supports:

• The region(s) where you sell
• Anticipated business expansion
• Ecommerce application integrations
• The ability to view multi-channel sales performance
• Multi-currency capabilities
• Sales tax management
• Ease of use
• Financial reporting
• Any required customizations

Accounting for eBay managed payouts

As eBay sellers will likely be aware, when you get paid by eBay, payouts are deposited directly in the bank account. eBay deducts any selling costs and fees from your funds prior to payout.

If your bank is connected to your accounting software of choice, the eBay deposit will show up directly in your accounting software so you can reconcile it.

What eBay sellers might not know is that recording your entire eBay payout as ‘sales’ or ‘income’ is incorrect. And, it’s also important to make sure you’re accounting for the fees that eBay deducted (e.g., by coding them to an expense account).

eBay provides the details about the transactions that make up each payout and the fees that you’re paying in Seller Hub. However, manually entering that information into your accounting software of choice can take a lot of time and be prone to error.

Most accounting software solutions don’t integrate directly with eBay, meaning that you’ll need an additional app or tool to import eBay sales and transaction information into your selected accounting software.

The good news is that A2X serves as an integration tool designed to streamline the transfer of eBay transaction data into accounting software and simplify eBay bookkeeping. This is especially helpful if you sell on multiple channels (i.e., you sell on eBay, and maybe you also sell on Amazon and/or Shopify).

The even better news? A2X is compatible with every accounting software mentioned in this list.

QuickBooks Online for eBay sellers

If you’re based in North America, you’ve probably heard of Intuit’s QuickBooks Online (QBO). It’s currently the most popular accounting solution for small businesses in the United States and Canada.

eBay sellers and accountants and bookkeepers who work with eBay sellers recognize QBO as an excellent choice of accounting system due to its extensive accounting capabilities and features, robust security, and the wide range of compatible third-party applications, such as A2X.

QuickBooks Online’s top benefits for eBay sellers

• eBay and ecommerce integrations: eBay can connect to QuickBooks Online via QBO’s connector app. However, it’s important to note that this could cause too much data to flow into QBO, and it might miss some transaction types. If you’re a larger eBay seller with more intricate accounting needs, such as selling across multiple channels and countries, or with large order volumes, you’ll want to consider integrating eBay and QBO with a tool like A2X for accurate and automated revenue reconciliation.
• Inventory control: QuickBooks Online can assist eBay sellers in monitoring inventory levels, Cost Of Goods Sold (COGS), and inventory valuation. It’s a valuable tool for inventory management, preventing stock shortages, and ensuring product availability.
• Streamlined sales tax management: QBO can help simplify sales tax management in various states and countries. It can help automate sales tax calculations, ensuring adherence to regulations, and easing tax reporting for your eBay business.
• Enhanced reporting and analytics: QBO provides critical insights into your business’s financial status and sales patterns. Its advanced reporting capabilities are crucial for eBay sellers aiming to refine their business strategies based on trustworthy data.

“eBay merchants have a good accounting solution in QuickBooks Online… It’s simple to use, allows for communication between clients and their bookkeeping partners, and has most of the accounting features a merchant would need. And when it doesn’t have every feature, it integrates with amazing third-party apps, like A2X, through its app store.”
– Teresa Slack, founder of Financly, ecommerce bookkeeping experts

QuickBooks Online plan recommendations for ecommerce

QuickBooks Online offers a variety of plans in different currencies, but the availability of these plans may vary depending on the country.

A2X can integrate with every QuickBooks Online plan, but handling transactions in multiple currencies will require at least the Essentials package or higher.

The Plus plan is recommended for eBay sellers due to its advanced inventory management and profit analysis features.

If you’re located in the United States and starting with QuickBooks Online, check out A2X’s special promotional pricing for QBO.

Xero for eBay sellers

If you’re based in the United Kingdom, Australia, or New Zealand, you might recognize Xero. As the top cloud accounting software in these areas since 2006, Xero was designed specifically for cloud-based operations, allowing for a wide range of accounting integrations to simplify small business operations and improve data accuracy.

Xero garners trust from eBay sellers and ecommerce accountants for its all-encompassing functionality and beautiful user interface. Its capability in handling multiple currencies is particularly beneficial for ecommerce sellers operating internationally.

Xero’s top features for eBay sellers

• Ecommerce integrations: Xero’s app store offers a wide variety of ecommerce accounting integrations for eBay sellers, including A2X, which will make eBay reconciliation quick, easy, and accurate.
• Multi-currency support: Xero’s capability to handle multiple currencies is an important consideration for international eBay sellers. Xero can automatically update exchange rates for streamlined foreign transaction management.
• Detailed financial reporting: Xero provides in-depth financial insights with its reporting tools, offering thorough analyses like Profit and Loss Statements and cash flow evaluations.
• Inventory management: Xero offers basic inventory tracking, helping sellers monitor stock levels and evaluate product performance, although it’s not as advanced as specialized systems.
• Cloud-based access: Xero enables sellers to access their financial data from anywhere, facilitating smooth updates and quick decision-making. As a natively built cloud solution, it’s specially designed for the flexibility ecommerce businesses often need.

“Our view is that Xero is the best accounting solution for eBay [and ecommerce] merchants selling internationally, especially if they’re dealing with foreign currency and selling into the United States.” – Jason Macdonald, Partner at Intrepid Advisory.

Xero plan recommendations for ecommerce

Xero offers several types of plans, most of which are available in different currencies. However, the range of plans offered may vary depending on the country.

A2X integrates with all Xero plans. To manage transactions in several currencies with A2X, the Premium package or a higher level plan is necessary.

For eBay sellers involved in global transactions, Xero’s Established plan is a strong option due to its comprehensive multi-currency support. It’s designed to cater to the needs of businesses engaged in cross-border trade, making it a suitable choice for eBay sellers with international customers.

Sage for eBay sellers

In the UK, Sage is well-known for offering both desktop and cloud accounting solutions since 1981. Sage Business Cloud Accounting, in particular, is a good choice for eBay sellers who need a comprehensive, cloud-based accounting tool.

Top Sage features for eBay sellers

• eBay integration: Sage Business Cloud Accounting offers an eBay integration using tools like A2X. This allows for efficient reconciliation of sales, fees, taxes, and other transactions, which not only saves time but also enhances the accuracy of your financial records.
• Inventory tracking and management: Sage provides tools for effective inventory management, offering real-time data and reports to help you stay informed about stock levels and alerting you when supplies are running low.
• Multi-currency capabilities: The multi-currency feature in Sage supports handling transactions in various currencies, a crucial function for sellers engaging in international trade.

Sage plan recommendations for ecommerce

A2X integrates with Sage, specifically supporting the Sage Business Cloud UK (Plus plan) and the Sage One UK (Plus plan). This integration enables A2X to post sales and fees from eBay into Sage, organizing them into concise summaries that align with bank account payments.

The Sage Business Cloud Accounting Plus plan, priced at £36 per month, provides a range of functionalities that can help manage the accounting demands of an eBay business.

NetSuite for eBay sellers

For larger ecommerce businesses, especially those that have scaled up significantly, NetSuite offers a comprehensive Enterprise Resource Planning (ERP) solution.

It’s ideal for large eBay sellers (or multi-channel sellers who include eBay in their channel mix) who need detailed accounting, inventory, operations, and financial management. NetSuite’s robust features cater well to the complex requirements of major online businesses.

NetSuite’s top features for eBay sellers

• ERP and CRM: NetSuite offers a comprehensive suite of ERP and Customer Relationship Management (CRM) tools. This makes it suitable for larger eBay sellers (or multi-channel sellers) who need to manage various aspects of their business lifecycle within a single platform.
• Advanced inventory management: NetSuite’s advanced inventory management offers detailed tracking and provides real-time insights into stock levels, which is essential for sellers with large inventories. This feature helps in efficiently managing extensive product ranges.
• Global business management: NetSuite’s global business management features are ideal for international scalability, offering support for multiple currencies, languages, and subsidiary operations. This functionality is particularly useful for eBay sellers looking to expand their business globally.

NetSuite plan recommendations for ecommerce

NetSuite’s pricing is customized based on each business’s specific needs, typically starting at several thousand dollars per year.

Larger eBay retailers or businesses with complex multinational operations are encouraged to contact NetSuite directly to discuss their specific requirements and explore the available options.

Integrating eBay with your accounting software via A2X

A2X simplifies the process of reconciling eBay transaction data in accounting software like QuickBooks Online, Xero, Sage, or NetSuite.

A2X is versatile enough to handle accounting for sales on eBay alone or across multiple channels and countries. It categorizes each eBay transaction, including sales, fees, taxes, and refunds, into detailed summaries that match perfectly with deposits in your accounting system.

A2X is trusted by leading ecommerce sellers, accountants, and bookkeepers for saving time in bookkeeping, accurately tracking taxes and COGS, improving P&L quality, and enhancing financial transparency.

“When connecting eBay data with our accounting software, we trust A2X. I can’t understand why someone would connect a solution that submits individual transactions (that flood the accounting system) or enter data manually. A2X allows for accrual accounting, summary entries, and is an incredibly accurate solution that saves us tons of time.”
– Chase Insogna, founder of Insogna CPA, expert ecommerce accountants, tax strategy, and CFO advisory services

“When ecommerce businesses use A2X, they’re reconciling their books faster, have more up-to-date financials, and have everything they need to make good, timely business decisions.”
– Jay Kimelman, President of High Rock Accounting

“A2X helps us reconcile revenue data and post Cost of Goods Sold accurately and easily. We’ve been using A2X since 2014 and we can’t recommend them enough. We love working with the A2X team, because they’re incredibly responsive to our needs, and the support is just amazing.”
– Patti Scharf, founder of Catching Clouds (now Acuity), first specialized ecommerce accounting practice in the US

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Selecting the right accounting software for your eBay store

Selecting the right software is crucial for maintaining accurate financial records and gaining clear financial insight for your eBay business.

If you’re unsure, consider consulting an expert ecommerce accountant who can recommend the best solution for your specific needs.

You can find a specialized eBay accountant through the A2X Partner Directory.