Amazon Sellers, Received an Amazon 1099? How to Tie your Amazon 1099-K to your Bookkeeping Records
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- Опубликовано: 24 апр 2022
- Hey Amazon Sellers! Did you receive a 1099 from Amazon this year? At first glance, the 1099 figure will seem overstated, and it can be difficult to know how the 1099 figure relates to your Amazon sales and fees. In this video let me show you how to tie your bookkeeping records to the 1099-K you receive from Amazon.
This video is pre-supposing that you used my Amazon bookkeeping method to do your bookkeeping. Here is a link to that video if you need to understand my method of Amazon bookkeeping first: • 2024 Update - How to d...
I'm using QuickBooks Online Simple Start for my bookkeeping. This is my referral link: www.smallbusinesssarah.com/qu...
This video is for informational purposes only and does not constitute tax or accounting advice.
Hi Sarah. Thank you very much for this and all of your videos. I got my first 1099 from amazon and was so fuistrated that my numbers did not tie. Then i saw your video!!!! Thank you. I have been using your method as shown in your videos and it is clear to understand and very well done.
So glad it was helpful!
This video is the most helpful and full of info.
This is very helpful!! Thank you!
Hey Sarah, in your bookkeeping tutorial you add up credit and refunds. here yo said you dont do that anymore. Can you please make another tutorial for 2023 along with a new charts of account cvs file to reflect those changes? I would appreciate it. Thank you.
Some day maybe, time and money, time and money!
Hi Sarah, Thank you so much for this! It's been so helpful, but the profit and loss doesn't match the 1099 because we are combing certain numbers - like shipping credits / refunds, gift card credits & refunds as well as the promotional rebates & refunds. I know you mentioned in another comment that you don't have time to do another video, but any chance you can give a quick chart of account synopsis? I'm sure this is the best time of the year for that too. LOL! Sorry and thanks! You really are wonderfully informative!
I do need to revise my original Amazon video, but the revisions are slight. You can still combine the two different sales lines, and then combine the two refund lines. The other items to break out are Shipping Credits, Shipping Credit Refunds, Promotional Rebates, Promotional Rebate Refunds, Gift Wrap Credits, and Gift Wrap Credit Refunds. All the other line items on the left side of the summary you can combine. So most of what you have done throughout the year should be fine, it's just a few of the very small credits and refunds that you might need to go back and break out and add an additional item to your COA.
Please make videos on QuickBooks online Cleanup
How would we post a journal entry to agree with the 1099? I think I need to do this as I went back for every Amazon summary report per month for 2022, and my promotional rebate and shipping credit numbers are different on the new reports I downloaded vs. the 1099 monthly breakdown, so I'm assuming I need to do a journal entry for the end of the year? How would I do this, as I am trying at Quickbooks is telling me my numbers on the JE need to add up.
In your journal entry, debit and credit promotional rebate and shipping credit as needed to tie to the 1099. To balance the journal entry you can either use Amazon Holding (if you think it might be off) or just any other expense account. Presumably the net difference is small.
Hi Sarah, how do I record the tax collected and paid by Amazon in Quickbooks? Should I be doing that in Quickbooks?
I don't like to record the sales tax collected and remitted in QB, because it technically is not an income or expense item to my business. I tend to leave it out of QB, and then on the tax return, I just add a deduction for the sales tax they included on the 1099.
Hi, Sara I’ve been following your method for a couple years now. This is the first year I got a 1099K. I had made a QB journal entry to balance each account to align with my 1099. Should I also record sales tax collected for each months journal by debiting and crediting it?
You could, but I don't do that. Sales tax is never an income item nor an expense item to the business' owner. To me seeing it on the P&L would just throw off the look and numbers of the P&L. I would just adjust for the sales tax on the tax return, and not bother adding it to your bookkeeping.
Hey Sara, I am so glad I found this video. I have a difference of $11000, should I worry about that?
Are you looking at page 2?
Do you know why the monthly statement summary and the 1099 would have different numbers for each month? They do not match on my biz this year and I have been using your method for a few years now (thank you very much BTW)
Usually it's just a timing difference. So one month is low, the next month is high, and then by the end of the year it mostly evens out and is very close. I have seen in the past that sometimes Amazon will edit information, meaning, you run your monthly statement, then they make changes to past months, and if you ran it again it would be slightly difference. As I said, usually by the end of the year the differences are very small. I just post a journal entry to get everything to agree and call it a day!
How is the Amazon remitted sales tax recorded for in Quickbooks? what "payment account"? Amazon holding?
I don't record the sales tax in QuickBooks because it's not actually income to the seller. While you will have to use the Amazon 1099 figure on your taxes that includes sales tax, you should also record an equal amount as a deduction on your tax return.
is this all we give to our tax person? The profit and loss, along with the 1099? What about the cost of goods sold and deductions?
You should connect all of your business financial accounts to QuickBooks, and when you categorize those transactions, those will also fill in the relevant information in your Profit & Loss statement that you give to your tax preparer.
@@SmallBusinessSarah do you have a video on adding the cost of goods sold like the cost to produce the product and partial rent and other expenses? If not, can you make one as taxes are coming up.
I did not receive 1099-K form from Amazon and IRS just sent me mail of tax that Amazon sent to them .Can I request back from Amazon for 1099-K form as my seller account is already deactivated.
I'm not sure, sorry!
@SmallBusinessSarah Hi Sarah, the Chart of Accounts i just got by signing up do they reflect the new way you are now going this or do we have to add the additional account for the COA
The promotional rebate refund and shipping credit refund lines have been added to the CSV file chart of accounts download.
@@SmallBusinessSarah Awesome Thank you. I am determined to make sure I get my books tidy this years. Thank you for your videos - great content
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