In the e-commerce industry, you have a million things to track: manufacturers, shipping, inventory, employees, bills, sales tax, and more.
Now imagine that you need to find out what you bought for $191.21 last February at online… and why.
Perhaps your operations manager or worse, the IRS, needs to see all of the receipts in the business from May to November last year.
Are you going to hunt through a pile of receipts in your inbox?
We hope not!
This is where your e-commerce chart of accounts comes in.
In today’s blog, we’re going to go over what the chart of accounts is, why you need one, and how to create a chart of accounts for your e-commerce business.
Let’s dive in.
What is an e-commerce chart of accounts?
First things first, let’s discuss what a chart of accounts is.
An easy way to think about it is like a table of contents for your finances. It’s an ordered list of sections, or categories, for all of your transactions.
More often than not, it’s uploaded to your bookkeeping software (QuickBooks, Xero, etc.) to help organize all of your financial transactions.
With a chart of accounts, everything from a shipping cost to a utility bill is recorded into an appropriate category, making it easy for you to locate any piece of financial data at any time.
Here’s a sample of what that could look like for an e-commerce chart of accounts:
|1375||Inventory:Inventory Landing Cost Allocation|
Why is an e-commerce chart of accounts important?
A chart of accounts is important because it provides consistency and accuracy in financial reporting.
Without it, your bookkeeping software will just become a vast pit of various transactions – aka your inbox – with no order or organization to it at all.
Additionally, putting your transactions into designated categories helps you generate financial reports, and makes it easier to track and analyze financial trends.
Plus, it ensures compliance with accounting standards and regulations, which is essential for audits and financial reporting.
How do you use your e-commerce chart of accounts?
The chart of accounts is most commonly used in your bookkeeping or accounting software, and depending on which software tool you use, the process for uploading your chart of accounts will differ.
For QuickBooks, you can follow these instructions:
- Sign in to QuickBooks Online.
- Select Settings ⚙. Then select Import Data.
- Select Chart of Accounts.
- To upload a file from your computer, select Browse and choose the file. Then select Open.
- Select Next.
- Map your spreadsheet to QuickBooks fields
- Import your chart of accounts
For Xero, you can follow these instructions.
Our advice? Make a copy of our E-Commerce Chart of Accounts customize it for your business, and upload it to your bookkeeping software. Voila!
Download your e-commerce chart of accounts template 2023
While your e-commerce business may be more complex than the average small business, the good news is that your chart of accounts doesn’t need to be.
To make it easy for you, we’ve made a template of the e-commerce chart of accounts that we use with our clients.
Note: your chart of accounts should be unique to your company, and will vary depending on how you track your projects. To get help with your specific chart of accounts, you can reach out to our team anytime.
|Account # (These are optional)||Account||Type||Detail type|
|1004||Money Market||Bank||Money Market|
|1005||Mutual Funds||Bank||Money Market|
|1012||Funds In Transit:Affirm Holding||Bank||Checking|
|1013||Funds In Transit:Afterpay Holding||Bank||Checking|
|1014||Funds In Transit:PayPal Holding||Bank||Checking|
|1015||Funds In Transit:Shopify Holding||Bank||Checking|
|1016||Funds In Transit:Amazon Pay Holding||Bank||Checking|
|1017||Funds In Transit:iGlobal Holding||Bank||Checking|
|1018||Funds In Transit:Stripe Holding||Bank||Checking|
|1020||Funds In Transit:Amazon Pending Balances||Bank||Checking|
|1021||Funds In Transit:Amazon Reserved Balances||Bank||Checking|
|1200||Accounts Receivable||Accounts receivable (A/R)||Accounts Receivable (A/R)|
|1090||Undeposited Funds||Other Current Assets||Undeposited Funds|
|1275||Prepaid Expenses||Other Current Assets||Prepaid Expenses|
|1300||Inventory||Other Current Assets||Inventory|
|1301||Inventory:Inventory On-Hand||Other Current Assets||Inventory|
|1350||Inventory:Inventory In-Transit||Other Current Assets||Inventory|
|1375||Inventory:Inventory Landing Cost Allocation||Other Current Assets||Inventory|
|1400||Amazon Carried Balances||Other Current Assets||Other Current Assets|
|1500||Furniture and Equipment||Fixed Assets||Other fixed assets|
|1510||Computer Equipment||Fixed Assets||Other fixed assets|
|1600||Accumulated Depreciation||Fixed Assets||Other fixed assets|
|1700||Startup and Organization||Fixed Assets||Intangible Assets|
|1800||Accumulated Amortization||Fixed Assets||Intangible Assets|
|1325||Prepaid Inventory Deposits||Other Assets||Security Deposits|
|2000||Accounts Payable||Accounts payable (A/P)||Accounts Payable (A/P)|
|2050||Inventory Payable||Accounts payable (A/P)||Accounts Payable (A/P)|
|2200||Amex – (xxxx)||Credit Card||Credit Card|
|2201||Credit Card (xxxx)||Credit Card||Credit Card|
|2375||Payroll Liabilities:Accrued Expense – 401K||Other Current Liabilities||Payroll Clearing|
|2380||Payroll Liabilities:Accrued Expenses – Wages||Other Current Liabilities||Payroll Clearing|
|2400||Gift Card Liability||Other Current Liabilities||Other Current Liabilities|
|2500||Sales Tax Liability||Other Current Liabilities||Sales Tax Payable|
|2600||Deferred Revenue||Other Current Liabilities||Other Current Liabilities|
|2700||Amazon Loans||Other Current Liabilities||Other Current Liabilities|
|3000||Opening Balance Equity||Equity||Opening Balance Equity|
|3001||Retained Earnings||Equity||Retained Earnings|
|3100||Partner Equity||Equity||Owner’s Equity|
|3110||Partner Draws||Equity||Partner Distributions|
|4000||Website Sales||Income||Sales of Product Income|
|4010||Website Sales:Refunds||Income||Discounts/Refunds Given|
|4020||Website Sales:Customer Discounts||Income||Service/Fee Income|
|4030||Website Sales:Shopify Markdowns||Income||Service/Fee Income|
|4040||Website Sales:Shipping Income||Income||Service/Fee Income|
|4050||Website Sales:Shipping Protection Income||Income||Other Primary Income|
|4100||Amazon Sales||Income||Sales of Product Income|
|4110||Amazon Sales:Amazon Refunds||Income||Sales of Product Income|
|4120||Amazon Sales:Amazon Discounts||Income||Discounts/Refunds Given|
|4130||Amazon Sales:Amazon Markdowns||Income||Discounts/Refunds Given|
|4140||Amazon Sales:Amazon Shipping||Income||Other Primary Income|
|4150||Amazon Sales:Amazon Reimbursement||Income||Other Primary Income|
|4250||Other Sales||Income||Sales of Product Income|
|4300||Wholesale Income||Income||Sales of Product Income|
|4900||Uncategorized Income||Income||Service/Fee Income|
|5000||Cost of Goods Sold||Cost of Goods Sold||Supplies & Materials – COGS|
|5010||Freight-in Costs||Cost of Goods Sold||Supplies & Materials – COGS|
|5020||Customs||Cost of Goods Sold||Other Costs of Services – COS|
|5050||Product Design Expense||Cost of Goods Sold||Supplies & Materials – COGS|
|5090||Inventory Adjustment||Cost of Goods Sold||Supplies & Materials – COGS|
|5700||Freight-Out||Cost of Goods Sold||Shipping, Freight & Delivery – COS|
|5750||Shipping Materials||Cost of Goods Sold||Shipping, Freight & Delivery – COS|
|5100||GENERAL & ADMINISTRATIVE:Ask Client||Expenses||Other Business Expenses|
|5400||SELLING & FULFILLMENT||Expenses||Advertising/Promotional|
|5500||SELLING & FULFILLMENT:Merchant Account Fees||Expenses||Other Miscellaneous Service Cost|
|5501||SELLING & FULFILLMENT:Merchant Account Fees:Shopify Fees||Expenses||Other Miscellaneous Service Cost|
|5502||SELLING & FULFILLMENT:Merchant Account Fees:Amazon Pay Fees||Expenses||Other Miscellaneous Service Cost|
|5505||SELLING & FULFILLMENT:Merchant Account Fees:Affirm Fees||Expenses||Other Miscellaneous Service Cost|
|5510||SELLING & FULFILLMENT:Merchant Account Fees:Afterpay Fees||Expenses||Other Miscellaneous Service Cost|
|5515||SELLING & FULFILLMENT:Merchant Account Fees:iGlobal Fees||Expenses||Other Miscellaneous Service Cost|
|5520||SELLING & FULFILLMENT:Merchant Account Fees:Paypal Fees||Expenses||Other Miscellaneous Service Cost|
|5530||SELLING & FULFILLMENT:Merchant Account Fees:Amazon Seller Fees||Expenses||Other Miscellaneous Service Cost|
|5550||SELLING & FULFILLMENT:Merchant Account Fees:Amazon Optivations Fees||Expenses||Advertising/Promotional|
|5600||SELLING & FULFILLMENT:Fulfillment||Expenses||Other Business Expenses|
|5625||SELLING & FULFILLMENT:Fulfillment:Fulfillment – Labor||Expenses||Other Miscellaneous Service Cost|
|5650||SELLING & FULFILLMENT:Fulfillment:Order Fulfillment||Expenses||Other Business Expenses|
|5660||SELLING & FULFILLMENT:Fulfillment:Amazon FBA Fees||Expenses||Shipping, Freight & Delivery|
|5800||SELLING & FULFILLMENT:Warehouse Storage||Expenses||Other Business Expenses|
|5810||SELLING & FULFILLMENT:Warehouse Storage:Account Mainenance||Expenses||Supplies & Materials|
|5820||SELLING & FULFILLMENT:Warehouse Storage:Space Usage||Expenses||Supplies & Materials|
|6000||MARKETING||Expenses||Other Miscellaneous Service Cost|
|6002||MARKETING:Affiliate Commissions||Expenses||Other Miscellaneous Service Cost|
|6005||MARKETING:Marketing Events & Materials:Displays||Expenses||Advertising/Promotional|
|6010||MARKETING:Marketing Events & Materials:Expo Fees||Expenses||Advertising/Promotional|
|6015||MARKETING:Marketing Events & Materials:Photography||Expenses||Advertising/Promotional|
|6020||MARKETING:Marketing IT:Client Development||Expenses||Advertising/Promotional|
|6025||MARKETING:Marketing IT:Direct Marketing||Expenses||Advertising/Promotional|
|6030||MARKETING:Marketing Events & Materials:Event Expense||Expenses||Advertising/Promotional|
|6035||MARKETING:Digital Advertising:Facebook Advertising||Expenses||Advertising/Promotional|
|6040||MARKETING:Digital Advertising:Google Advertising||Expenses||Advertising/Promotional|
|6045||MARKETING:Digital Advertising:Pinterest Advertising||Expenses||Advertising/Promotional|
|6046||MARKETING:Promotional:Promotional Gift Cards||Expenses||Advertising/Promotional|
|6048||MARKETING:Promotional:Product Giveaway Freight||Expenses||Advertising/Promotional|
|6050||MARKETING:Marketing Events & Materials:Uniform||Expenses||Advertising/Promotional|
|6055||MARKETING:Marketing Events & Materials:Website||Expenses||Advertising/Promotional|
|6061||MARKETING:Marketing Events & Materials:Graphic Designer||Expenses||Advertising/Promotional|
|6065||MARKETING:Digital Advertising:Amazon Advertising||Expenses||Advertising/Promotional|
|6070||MARKETING:Marketing IT||Expenses||Other Business Expenses|
|6080||MARKETING:Marketing Events & Materials||Expenses||Advertising/Promotional|
|6095||MARKETING:Digital Advertising:Ad Management||Expenses||Advertising/Promotional|
|6200||GENERAL & ADMINISTRATIVE||Expenses||Office/General Administrative Expenses|
|6201||GENERAL & ADMINISTRATIVE:Misc G&A:General & Admin Expenses||Expenses||Office/General Administrative Expenses|
|6205||GENERAL & ADMINISTRATIVE:Misc G&A:Automobile Expense||Expenses||Other Miscellaneous Service Cost|
|6210||GENERAL & ADMINISTRATIVE:Misc G&A:Bank Service Charges||Expenses||Other Miscellaneous Service Cost|
|6213||GENERAL & ADMINISTRATIVE:Misc G&A:Business Licenses and Taxes||Expenses||Other Miscellaneous Service Cost|
|6214||GENERAL & ADMINISTRATIVE:Charitable Donations||Expenses||Charitable Contributions|
|6215||GENERAL & ADMINISTRATIVE:Contract Labor||Expenses||Other Business Expenses|
|6217||GENERAL & ADMINISTRATIVE:Misc G&A:Office IT Subscriptions||Expenses||Other Miscellaneous Service Cost|
|6218||GENERAL & ADMINISTRATIVE:Insurance Expense||Expenses||Insurance|
|6219||GENERAL & ADMINISTRATIVE:Life Insurance||Expenses||Insurance|
|6220||GENERAL & ADMINISTRATIVE:Misc G&A:Meals and Entertainment||Expenses||Entertainment Meals|
|6221||GENERAL & ADMINISTRATIVE:Misc G&A:Office Supplies & Equipment||Expenses||Other Miscellaneous Service Cost|
|6226||PERSONNEL:Employee Benefits & Admin.:Medical, Dental, Vision||Expenses||Payroll Expenses|
|6227||PERSONNEL:Employee Benefits & Admin.:401K expense||Expenses||Payroll Expenses|
|6228||PERSONNEL:Employee Benefits & Admin.:Payroll Taxes||Expenses||Payroll Expenses|
|6229||PERSONNEL:Employee Benefits & Admin.:Benefits Admin||Expenses||Payroll Expenses|
|6230||PERSONNEL:Other Payroll Expenses||Expenses||Payroll Expenses|
|6231||PERSONNEL:Officers Compensation||Expenses||Payroll Expenses|
|6232||PERSONNEL:Employee Benefits & Admin.:Employee Incentives||Expenses||Payroll Expenses|
|6234||GENERAL & ADMINISTRATIVE:Professional Fees||Expenses||Legal & Professional Fees|
|6236||GENERAL & ADMINISTRATIVE:Professional Fees:Legal Fees||Expenses||Legal & Professional Fees|
|6237||GENERAL & ADMINISTRATIVE:Professional Fees:Accounting||Expenses||Other Miscellaneous Service Cost|
|6238||GENERAL & ADMINISTRATIVE:Professional Fees:Income Tax Fees||Expenses||Legal & Professional Fees|
|6239||GENERAL & ADMINISTRATIVE:Professional Fees:Sales Tax Fees||Expenses||Legal & Professional Fees|
|6240||PERSONNEL:Employee Benefits & Admin.:HR Services||Expenses||Other Miscellaneous Service Cost|
|6243||GENERAL & ADMINISTRATIVE:Product Development Materials||Expenses||Other Business Expenses|
|6250||PERSONNEL:Employee Benefits & Admin.||Expenses||Other Business Expenses|
|6290||GENERAL & ADMINISTRATIVE:Misc G&A:Gifts||Expenses||Other Business Expenses|
|6300||GENERAL & ADMINISTRATIVE:Misc G&A:Franchise Taxes Paid||Expenses||Taxes Paid|
|6600||GENERAL & ADMINISTRATIVE:Travel Expense||Expenses||Travel|
|6700||GENERAL & ADMINISTRATIVE:Facility Expense||Expenses||Rent or Lease of Buildings|
|6710||GENERAL & ADMINISTRATIVE:Facility Expense:Rent Expense||Expenses||Rent or Lease of Buildings|
|6715||GENERAL & ADMINISTRATIVE:Facility Expense:Office Expenses||Expenses||Office/General Administrative Expenses|
|6720||GENERAL & ADMINISTRATIVE:Facility Expense:Repairs and Maintenance||Expenses||Repair & Maintenance|
|6730||GENERAL & ADMINISTRATIVE:Facility Expense:Janitorial Expense||Expenses||Repair & Maintenance|
|6740||GENERAL & ADMINISTRATIVE:Facility Expense:Other Facility||Expenses||Repair & Maintenance|
|6745||GENERAL & ADMINISTRATIVE:Facility Expense:Computer and Internet Expenses||Expenses||Office/General Administrative Expenses|
|6800||GENERAL & ADMINISTRATIVE:Facility Expense:Property Tax||Expenses||Taxes Paid|
|6810||GENERAL & ADMINISTRATIVE:Facility Expense:Telephone Expense||Expenses||Office/General Administrative Expenses|
|6860||GENERAL & ADMINISTRATIVE:Facility Expense:Utilities||Expenses||Other Miscellaneous Service Cost|
|6900||GENERAL & ADMINISTRATIVE:Misc G&A:Uncategorized Expense||Expenses||Other Miscellaneous Service Cost|
|6904||GENERAL & ADMINISTRATIVE:Royalty||Expenses||Advertising/Promotional|
|6905||GENERAL & ADMINISTRATIVE:Misc G&A:Penalties||Expenses||Other Miscellaneous Service Cost|
|6910||GENERAL & ADMINISTRATIVE:Misc G&A:Reconciliation Discrepancies||Expenses||Other Miscellaneous Service Cost|
|6690||Interest Income||Other Income||Interest Earned|
|6920||Dividend Income||Other Income||Dividend Income|
|6930||Gain/Loss on Sale||Other Income||Other Investment Income|
|6935||Purchase Discount||Other Income||Other Miscellaneous Income|
|8000||Interest Expense||Other Expense||Other Miscellaneous Expense|
|8100||Depreciation Expense||Other Expense||Depreciation|
|8200||Amortization Expense||Other Expense||Amortization|
You can download your own chart of accounts template here.
Do you need help organizing your e-commerce bookkeeping?
We hope you’ve enjoyed our brief overview of the e-commerce chart of accounts.
You can download your own chart of accounts template here.
However, we’ve only touched the tip of the iceberg when it comes to keeping healthy books for your e-commerce business.
If you have more questions, need confirmation, or just want someone to take bookkeeping off of your hands altogether, we’re here to help.
It’s what we’re here for!
Until next time!