Industry guide
E-commerce bookkeeping
E-commerce books have to connect storefront sales, processor settlements, refunds, fees, sales tax, inventory, and bank deposits without treating deposits as revenue.
Reviewed by the Booksmrt bookkeeping teamLast reviewed 2026-07-27
What the monthly close has to prove
- Reconcile gross orders to refunds, discounts, tax, fees, and net processor deposits.
- Use clearing accounts so settlement timing does not distort sales.
- Separate inventory purchases, cost of goods sold, shipping, and operating expenses.
- Review chargebacks, reserves, gift cards, and sales-tax liabilities.
Documents to collect
- Storefront sales summary
- Processor settlement report
- Bank and card statements
- Inventory or purchase records
- Refund and chargeback detail
- Payroll reports
Common failure points
- Net deposits recorded as revenue
- Processor fees omitted
- Transfers between processors and banks duplicated
- Inventory purchases expensed inconsistently
- Sales tax included in revenue
Example
A $9,200 Shopify payout may represent $10,500 of orders less refunds, fees, and tax activity. The deposit alone cannot support the revenue entry.
Sources
Keep learning
RevenueRevenue is income earned from a business's ordinary activities before subtracting expenses.Cash receivedCash received is money deposited or otherwise collected, regardless of whether it is current-period revenue.Bank reconciliationBank reconciliation explains the difference between the book balance and an external bank statement for the same date.Gross profitGross profit is revenue minus the direct cost of producing the goods or services sold.AssetAn asset is a resource controlled by the business that is expected to provide future economic benefit.
Educational information only. Booksmrt provides bookkeeping services, not tax, legal, audit, or investment advice. Confirm material accounting and tax decisions with the appropriate professional.