At bookskeep, we take pride in using the best tools out there to provide the most accurate bookkeeping records for our clients. Some of these tools and systems are the latest and greatest; others are well-established, reliable systems that have been around for a while. While we're always looking for ways to streamline and be more efficient, the ultimate goal above all others is to provide accurate financial reports to our clients with confidence, knowing they rely on that information to make critical decisions for their business.
It helps us do our job well when our clients use tools that help them in keeping accurate records as well. One of these tools is A2X. This is a software program that automatically fetches your Amazon settlement transactions and posts summaries of those transactions to your accounting system, keeping it running smoothly.
One of the features of A2X that our clients really like (and we do too!) is the ability to calculate your Cost of Goods Sold (COGS). This information in turn allows you to track the latest trends, predict and prevent potential issues, and plan for growth.
What is COGS?
The COGS, or Cost of Goods Sold, compares the cost of creating a product to the cost of the sale of that product. This helps you to determine your gross margins so that you can better understand the profitability of your business. You'd be surprised how many sellers think they are profitable until they being to calculate and track their COGS. A2X allows you to choose which expenses to include in your COGS numbers. Costs such as procurement and production costs, taxes and duties, listing fees, inventory storage fees and other related costs. These numbers are then sent to whichever accounting system you use, such as QuickBooks, where reports can be generated that will give you an accurate view of your gross profitability.
Why do Amazon sellers love the COGS feature?
Because it simplifies your life. For most business owners, manually calculating the COGS can be a daunting, time-consuming task. Without the help of A2X, the numerous steps involved in doing these calculations on a regular monthly basis keeps you from focusing your valuable time elsewhere on the business. And while it is possible to calculate your COGS by hand, the process is very labor-intensive and leaves room for data entry errors. You probably didn’t start your business to spend days plugging numbers into spreadsheets, so why start now? A2X simplifies the accounting process so you can spend your time developing your business.