Unlike a brick-and-mortar shop, ecommerce accounting comes with multiple sales channels, different tax rates, and fluctuating fees. It’s a lot to manage, and if your records aren’t accurate, profits can disappear quickly.

Many business owners put accounting off until later, but waiting too long makes the process even harder. The longer financial records go unchecked, the more difficult it becomes to detect errors, catch unnecessary expenses, and make informed decisions.

A multichannel accounting system organizes everything, reduces tax headaches, and helps sellers focus on growth. This guide covers the essentials, making it easier to track income, handle expenses, and keep the business running smoothly.

Problems we see with multi-channel accounting

Starting an ecommerce business means keeping operations lean and efficient. In the beginning, spreadsheets and basic accounting software do the job. However, those tools run into roadblocks as sales channels expand, slowing growth and increasing risk.

Once ecommerce operations pick up, managing finances gets harder. Below are the biggest challenges that sellers face.

Data fragmentation across platforms

Sales come in from various platforms like Shopify, Amazon, eBay, and Etsy. Each platform has its reporting format, payout schedule, and tax calculation. Without a way to consolidate data, financial reports become inconsistent and unreliable.

When data is scattered, the following things happen:

• Reconciliation of fees, refunds, payouts, and sales taxes gets overwhelming as sales increase.
• The numbers in sales platforms and accounting software don't match. Tracking gross sales, refunds, and fees is difficult without proper tools.
• There is no clear view of overall performance. Since there’s no centralized dashboard, businesses struggle to see revenue, expenses, and profit margins by sales channel.
• It can be challenging to manage the different sales tax rules associated with different platforms, especially in countries with complicated tax reporting laws, such as the US or the UK. Manually tracking taxes across all channels increases the risk of errors and can lead to costly penalties.

Manual data entry errors

Greg Gordon, Founder and President of PartyMachines.com, knows all about the struggle of manual data entry. Every month, he spent hours entering sales revenue and expenses into QuickBooks.

As the business grew, he tried hiring someone to handle the workload, but that came with challenges. Managing an employee, paying for additional payroll, and covering insurance took more time and resources.

Even with extra help, Gordon still had to fix errors.

Now, with Webgility, Gordon saves 8-16 hours monthly, freeing up time for strategic growth. He easily tracks key business data across multiple sales channels, like order volume, average order size, and customer support time.

When you’re just starting, manual work might be manageable. But what happens when orders double? Or when your team needs real-time numbers to restock inventory or adjust pricing?

If manual entry slows or doubles your workload, it’s time to find a solution.

Difficulty in tracking inventory

Selling on multiple platforms means dealing with different inventory systems. Without a unified view, stockouts and overselling happen more often. If one platform updates inventory slower than another, customers might buy items that aren’t available. This leads to order cancellations, refunds, and bad reviews.

Tracking sales data across platforms also makes it difficult to predict when to restock, often resulting in overstocking or missed sales. Also, unsold products can pile up without proper inventory tracking, increasing warehousing costs.

Issues with sales tax compliance

Selling online means dealing with different tax laws. Each state or country has tax rates, filing deadlines, and requirements.

For example, in the US, sales tax rules vary by state. Some states charge sales tax on digital products, while others don’t. States like California have a higher rate, while Delaware has no sales tax. On the other hand, VAT (Value Added Tax) applies in the EU, and each country has its own set of rules for VAT rates. 

Here are a few things involved in managing ecommerce businesses:

• Registering for sales tax or VAT in regions where the business has tax obligations
• Calculating and filing quarterly and year-end taxes or VAT
• Collecting, tracking, and remitting sales tax or VAT
• Managing international tax, VAT, or GST obligations
• Staying updated on changes to tax laws and regulations
• Handling tax audits or disputes

Managing these manually increases the risk of errors and non-compliance, which can lead to penalties.

How to make multi-channel accounting highly accurate, compliant and effective

Managing ecommerce accounting can be complex across different channels. However, implementing advanced strategies can simplify your processes and enhance financial accuracy.

Use multi-channel connector apps

A multi-channel connector app links ecommerce platforms with accounting software, eliminating manual data entry. Instead of exporting CSV files or copying transactions by hand, every order, refund, and fee flows directly into the accounting system. 

These apps also map income streams, reconcile bank deposits, and organize sales tax data for different regions. The right connector keeps records clean, prevents tax errors, and saves hours of work every week.

Take Skinny Mixes, a brand known for its low-calorie cocktail mixers and sugar-free syrups. As its Shopify store grew, its accounting became unmanageable. Orders flooded in, but tracking revenue, expenses, and inventory took time. Manually entering transactions into QuickBooks led to mistakes, and reconciling accounts felt impossible.

They needed a solution that could keep up. In 2018, they integrated Webgility, connecting Shopify to QuickBooks. The results were immediate:

• Manual data entry disappeared, reducing bookkeeping errors
• Automated accounting lowered costs by cutting out unnecessary labor
• Inventory tracking improved, making financial reports more reliable
• The team finally had time to focus on business growth instead of paperwork

Webgility didn’t just fix their accounting—it gave them control over their finances. With support for major ecommerce platforms, adapting as businesses expand to new marketplaces. Every plan includes setup and customer support so that companies can start without delays.

To succeed in multichannel ecommerce accounting, using a connector app like Webgility helps to automate data transfer and ensures consistency between platforms and accounting systems. This reduces the risk of human error and allows you to focus on what matters most: scaling your business.

Maintain a centralized view of sales, cash flow, revenue, and profitability

Handling multichannel accounting without a centralized system creates blind spots in financial tracking. Sales data, cash flow, and expenses spread across platforms, making it challenging to see the whole picture. A system that connects every channel and syncs financial data in real-time eliminates manual work and keeps records accurate.

That’s precisely what Bases Loaded, a baseball and softball equipment superstore, needed as it scaled. More than a goal, growth became a challenge for the company. Online sales surged, but in-store operations remained a priority. Managing transactions across Amazon, Shopify, and a brick-and-mortar location made financial tracking difficult. The company needed a way to connect every sales channel to QuickBooks without disrupting operations.

After testing multiple options, Bases Loaded adopted Webgility in 2011. It linked the company’s sales platforms, updated real-time financial records, and automated transaction posting. Inventory levels, order values, and revenue were always accurate. 

At the time, the company processed 15 online orders daily and generated $1.9M in revenue. They process over 10,000 monthly orders and bring in over $5.5M annually.

An automated accounting system accounts for every sale, return, and fee. Transactions sync across channels without manual entry. That means businesses can generate detailed financial reports without spending hours on bookkeeping.

Here’s how a centralized accounting system improves visibility:

• Sales performance tracking: Compare revenue across channels, analyze promotions, and identify top-performing products.
• Cash flow monitoring: Track incoming funds, expenses, and payout cycles to manage operational costs.
• Profitability analysis: View profit margins at the product and channel level. Webgility syncs revenue, sales fees, and item costs to calculate accurate margins.
• Amazon settlement reports: Break down Amazon fees by category, linking charges to specific orders.
• Shopify payout reports: Connect Shopify payments with transaction details to track fees and understand revenue breakdowns.

When sales, expenses, and cash flow are always up to date, businesses can focus on strategy instead of spreadsheets.

Regular reconciliation of accounts

Multichannel ecommerce businesses handle thousands of transactions across different platforms. Without regular reconciliation, financial records become unreliable. A discrepancy in a single transaction can disrupt revenue tracking and tax reporting.

A structured reconciliation process identifies missing transactions, duplicate entries, and incorrect fee deductions. Comparing recorded revenue with bank statements. Without this step, financial statements may overstate earnings or underreport liabilities.

Regular reconciliation helps businesses:

• Verify recorded revenue: Match sales figures with actual deposits to prevent revenue miscalculations.
• Detect financial discrepancies: Identify missing payouts, incorrect deductions, or delayed transactions.
• Improve decision-making: Accurate financial records support better budgeting and resource allocation.
• Maintain tax accuracy: Avoid underpayment or overpayment by confirming taxable revenue matches reported income.

Keep track of tax deadlines and compliance changes

Selling across multiple states and countries means dealing with different tax rules, deadlines, and requirements. Missing deadlines leads to fines and compliance issues.

For example, a US-based seller must collect sales tax in states with a nexus. Some states require monthly filings, while others only need quarterly or annual reports. Missing a single deadline could result in fines. Additionally, changes in tax rates can lead to underpayment or overcharging customers if not properly managed.

International sellers face additional complexities regarding VAT, GST, and customs duties. Some countries require digital reporting, while others require manual submissions. Monitoring these requirements prevents legal and financial issues.

To stay compliant, businesses need:

• Automated tax calculations to apply the correct rates
• Deadline reminders to avoid penalties
• Real-time updates on tax law changes
• Accurate transaction records for audits

Staying informed on tax changes prevents costly mistakes and protects profits.

Effective inventory management

Since inventory is one of the most significant expenses for any ecommerce business, managing it is key to accounting.

Tracking the quantity and cost of inventory purchased and sold is essential for accurate financial records. Businesses risk financial discrepancies, overselling, or excess stock without proper management.

To maintain efficiency, businesses should ensure their inventory management software integrates with all platforms. Moreover, they should use real-time syncing to avoid overselling and set up automatic stock alerts to prevent stockouts and wastage. After all, a well-managed inventory system keeps your business organized and minimizes costly mistakes.

Essential accounting tools for multichannel ecommerce

Selecting the right multichannel ecommerce accounting software is crucial for accurate records and efficient financial management.

Here are four top tools to consider for your ecommerce business.

QuickBooks

                         Via QuickBooks Online

QuickBooks Online is a cloud-based accounting solution designed for ecommerce businesses. It offers flexibility, allowing you to manage accounts from anywhere, anytime. It integrates with major ecommerce platforms like Shopify, Amazon, and Etsy. Payment processors like PayPal also sync effortlessly.

The platform simplifies accounting with automatic bookkeeping features and expert support. A 30-day free trial lets you test its functionality before committing. QuickBooks provides free live expert assistance for 30 days with a 3-month plan.

Best features

• Integrate with ecommerce platforms like Shopify, Amazon, and Etsy
• Real-time tracking of inventory to keep stock levels accurate
• Automated bookkeeping that saves you hours of manual work
• Automatic tax calculations for compliance across different countries
• Bill management, mileage tracking, and other accounting functions

Webgility

                            Via Webgility

Webgility is built for multichannel ecommerce businesses, especially those using accounting platforms like QuickBooks and NetSuite. It helps manage finances, automate bookkeeping, and track inventory across multiple sales channels.

It seamlessly integrates into 50+ major marketplaces such as Amazon, eBay, Walmart, and Etsy, as well as ecommerce platforms like Shopify, WooCommerce, BigCommerce, and Magento. Webgility automatically syncs shipping, inventory, pricing, and other critical data. This reduces manual errors and improves accuracy. Better data enhances cash flow, profitability tracking, and tax compliance.

The platform also features an AI assistant that identifies top customers, calculates daily revenue, and reviews discounts or refunds. As a result, business owners get quick, actionable insights without sifting through complicated spreadsheets or dashboards.

Best features

• Generate and send professional invoices, track payments, and manage receivables effortlessly
• Categorize and keep track of expenses, connect bank accounts for automatic updates, and manage payables.
• Produce detailed financial reports, including profit & loss statements, balance sheets, and cash flow.
• Handle payroll, calculate taxes, and stay compliant with local regulations
• Manage inventory levels, track orders, and keep an eye on product costs to maintain ideal stock

Why choose Webgility over Synder and A2X?

Synder may be suitable for smaller businesses, but it lacks scalability as operations expand. Managing more sales channels, SKUs, and order volumes becomes challenging as a business scales. Webgility can handle all of this, making it ideal for growing businesses. 

A2X, on the other hand, doesn’t offer support for inventory sync, price sync, AI assistance, or ecommerce analytics, all of which are available with Webgility.

A2X

A2X integrates with accounting systems like QuickBooks Online, Xero, Sage, and NetSuite. It assigns tax rules to each transaction, ensuring accurate tax calculations based on location and transaction type.

You can keep track of profit margins, COGS, channel performance, and other vital metrics with detailed financial statements.

Best features

• Automate the classification of sales, refunds, fees, and taxes to eliminate manual errors
• Generate detailed journal entries and break down fees for easy reconciliation
• Handle multi-currency transactions and integrate seamlessly with various sales channels
• Match transactions across your accounting system, bank accounts, and marketplaces
• Access customizable financial reports that track business performance and keep you tax-compliant

Synder

Teams handling complex operations and data from multiple sources rely on Synder to sync, record, reconcile, and recognize both retail sales and SaaS subscriptions. It allows you to sync data from over 30 ecommerce platforms, including popular ones like QuickBooks, Xero, and Sage Intacct. 

Additionally, the system has built-in duplicate detection, minimizing errors and offering a simple one-click rollback feature to fix any issues quickly.

Best features

• Simple setup and easy-to-use interface
• Sync data across sales channels in real time to maintain accurate financial records
• Track basic inventory and cost of goods sold for better operational decision-making

Make your company’s financial health a top priority

As your e-commerce business grows and you add more sales channels, it becomes important to manage sales and inventory. The more sources you have, the harder it is to keep things organized. Without proper systems, it’s easy for accounting to get chaotic. Accuracy is crucial for smooth reconciliation, tax reporting, and understanding your business’s health.

Here are key things to consider when managing multi-channel accounting:

• Track every sale and expense to avoid mismatches
• Integrate each sales platform with your accounting system
• Reconcile accounts regularly to catch discrepancies
• Stay updated on tax rules for each channel and location

As a multichannel accounting software, Webgility simplifies this by automating accounting, inventory management, and data analysis in one platform. You can easily track each order, monitor sales trends, and manage refunds and fees. These insights make it much simpler to reconcile transactions and optimize your business.

Why wait? Get started today and simplify your multi-channel accounting!