How to Reconcile Form 1099-K - A2X to Amazon
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- Опубликовано: 1 фев 2019
- This is a question I get every single year as soon as Amazon sends out Forms 1099-K. How do I reconcile Xero to the Amazon 1099-K? Or... if I'm using A2X, how do I match my 1099-K from Amazon to my books? Finally, this year, I decided I would figure it out once and for all so I could show everyone how to do it. This video is the answer to that.
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Thanks for watching! Did you try this method? How did it work out for you?
Thanks for sharing your knowledge.
My pleasure!
Most excellent! Thank you so much! I had never heard of A2X until I found your videos, and I have been desperately searching for something like it for months now. Will A2X integrate with Wave Accounting software? If you don't know, I can research it myself. Don't take your time. :) I am going to be going through all you videos. You are a great teacher- clear, concise, with the all-important "WHY" included. You have a warm manner, and you use humor without descending into comedy. I appreciate your helping us. Thank you!
Oh-I didn't see the link in the description to the A2X blog post that you mentioned. Maybe it isn't labeled as such? I'd like to read it.
Aww... that was so sweet of you to say.
This is the link I was referring to in the video: support.a2xaccounting.com/faqs/how-to-balance-or-reconcile-your-amazon-1099k-to-amazon-reports-and-a2x-reports-step-by-step-complete-guide
No, they don't integrate with Wave, and I doubt they ever will. Xero and QBO makes up the vast majority of the market.
i agree with u donna! i’m so glad i found this channel
Do you offer a course to teach Amazon sellers how to use Xero and A2X?
No, but A2X's support is amazing. You might start there & let them know your challenges, and they can push you in the right direction.
We do have Accounting for Amazon and Accounting for Shopify courses available (see links in the description) that touches upon some basics, but it doesn't sound like that's exactly what you're looking for.
Hello, thank you for the valuable information! We recalculated your method and we reconcile for 2018. But this method does not work for 2019. For 2019 Marketplace Facilitator Tax they actually add it to the 1099. Is this correct or are we wrong? Because when we add the Marketplace Facilitator Tax in 2019 we come to correct amount on the 1099. Please advise.
We've been coming to the same conclusion for 2019!
We're still doing testing, but I don't think it's a coincidence. My opinion is that Amazon must've changed their report for 2019.
Thank you so much for this video. I have a question, I got my 1099-K, and also summery report which is showing INCOME-EXPENSES AND TRANSFER. How am I going to calculete my net income? There are a lot of number.
And... this is where you get an accountant involved. :)
Thank you for your video. May be i can explain our "fascination" with trying to reconcile the 1099-k. It comes from trying to figure out the difference in what Amazon reports in the 1099-k which is the Unadjusted Gross amount and the actual $$$ paid out to us. In our experience, just deducting the Expenses from the summary report doesn't really match: Unadjusted Gross Sales reported in 1099-k - "Expenses" in Summary Report is NOT equal to "Transfers" ($$ paid out). Could you explain?
Yeah, I understand why people want to know why the numbers don't match (believe me, accountants ALWAYS want to understand the numbers - it's in their DNA). I just think this isn't one of those things that's prone to error, and as long as you're doing your bookkeeping right, accountants should just let that go. ;)
And I can't explain why Amazon does what they do, but the video should show you how to go from one system to the other.
US sellers on Amazon.ca, do you get a 1099 for your amazon.ca sales or only your amazon.com sales?
Great question. I would imagine only Amazon.com, but I don't actually know for sure off the top of my head.
Do you have an opinion on Entriwise VS A2X? I was searching the Amazon Seller Forums and noticed this question, so I thought I'd ask the Pro. :)
I believe Entriwise only works with QBO, not Xero, and since we're a Xero-only firm, we've never had cause to try it.
With that said, every real player in the ecommerce accounting space uses A2X regardless of whether they are Xero or QBO users... not sure if that's a coincidence or not. It's possible Entriwise was just late to the game. But I LOVE A2X.
Patti, do you have an affiliate link to A2X? I'm ready to start an account with A2X, and I'd like to use your link. Thanks. :)
Hi Donna - sorry for the delay. I had to go get one. ;)
I don't think we actually get affiliate fees for this, but *you* get a discount if you use the code: CatchingClouds20%6M (20% discount for 6 months). Best of luck to you!
@@AcuityEcommerce Oh my goodness, Patti! I appreciate that so much! Thank you!
What should I do if it is really off?
I haven't experienced that, so I guess Is recommend that you double-check your work and maybe contact Amazon with whatever issues you seem to be having.
@@AcuityEcommerce I have double checked as far as the process in the video. However, my account seems to be off. Everywhere I go to check numbers, whether it be all individual transactions, or adding all deposits. Every number is different by 5-10 thousand. Fees and payments. Not sure if this is normal
How can I make sense of GST (Canadian sales tax) on my LLC's balance sheet? Or can I leave it off the books somehow?
It will never make sense due to currency flucations. It will never even out and will always be off. GST is a recoverable sales tax in Canada, its not an "expense" like sales tax in the states.
Example, I incur $10k (CAD) GST in Feb at 0.70 CAD/USD so my balance sheet shows a GST liability of -$7000 USD. I make a sale and collect $10k (CAD) GST in Dec at 0.80 CAD/USD so my books now shows a liability of $1000 USD.
This doesnt make sense. I would have no liability in reality as $10k - $10k = $0. My GST return to the CRA would be $0. However, my balance sheet shows a $1000 liability.
For my GST transactions I will keep a spreadsheet in CAD to see my real liabilties, my but balance sheet will not make sense.
I use waveapps, my books are in USD. For CAD transactions, waveapps converts the amount to USD based on that days exchange rate.
Any suggestions?
Personally, I would write off currency fluctuations when identified (i.e., to an other expense account called "Currency conversion gain/loss" or some such thing). Maybe others will chime in with their own advice.