Project Information
Most e-commerce brands are running on blended financials. We rebuild the structure that makes real profitability visible.
The Problem
Most multi-channel e-commerce businesses can’t answer a simple question: which of your SKUs is actually making money and on which channel?
It looks like a reporting gap. It isn’t. It’s structural.
The same product can be profitable on Shopify and silently losing money on Amazon once marketplace fees, storage costs, returns, and PPC are properly allocated per unit. Standard accounting setups blend everything into a single revenue line, so the distinction never surfaces.
QuickBooks and Xero’s native integrations make it worse. They import aggregated settlement data without mapping fees, refunds, or reimbursements back to the SKU that generated them.
The result: a clean-looking P&L that answers none of the questions a business owner actually needs answered.
What It Costs Your Business
When per-SKU, per-channel visibility is missing, the damage compounds quietly:
→ Reorder decisions are driven by revenue volume instead of contribution margin
→ Capital flows into negative-margin products while profitable SKUs stay under-invested
→ Cash flow forecasting breaks down because lead times aren’t tied to per-unit profitability
→ Inventory keeps moving into marketplaces that are quietly destroying margin
A SKU that looked profitable last quarter can flip to a loss-maker once fees, storage, returns, and PPC are correctly allocated. None of this shows up in standard reporting, until the chart of accounts is rebuilt to support it.
Our Approach: 5 Structural Corrections
1. Restructure the Chart of Accounts:
Segment revenue, COGS, and fees by sales channel with distinct accounts for gross sales, refunds, channel fees, advertising, and fulfillment. Without this foundation, every report downstream inherits the same blended data.
2. Replace Native Integrations:
Move from QuickBooks/Xero built-in connectors to A2X, Link My Books, or Bookkeep, posting accrual-basis journal entries with fees and refunds correctly attributed at settlement level.
3. Reconcile Every Channel to the Bank:
Amazon settlements, Shopify payouts, Walmart disbursements, all mapped to the matching bank deposit. Variances from refunds, chargebacks, or reserve adjustments are caught before they compound.
4. Track Inventory at True Landed Cost:
COGS rebuilt to include product cost, inbound freight, duties, and per-unit fulfillment fees. Without this, gross margin is an estimate, not a measurement.
5. Build the Contribution Margin Report:
One clean report: gross profit by SKU, by channel, by period. This drives every reorder, advertising, and capital allocation decision going forward.
The Outcome
Once this structure is in place:
✅ The business runs on contribution margin, not top-line revenue
✅ Capital shifts from negative-margin SKUs to profitable ones
✅ Reorder quantities align with real cash flow capacity
✅ Ad spend is justified by per-unit profitability, not gross sales volume
✅ Profitable SKUs get scaled. Loss-making ones get cut or repriced.
This is the line between accounting that records a business and accounting that actually runs one.
Ready to See Which of Your SKUs Is Actually Making Money?
Most e-commerce businesses are scaling revenue, not profit. We rebuild the accounting structure that shows you exactly where money is made and where it disappears.