E-commerce Basics Beginner

Ecommerce Accounting Course for Online Sellers

This comprehensive accounting course is designed specifically for ecommerce sellers who want to master their finances. We'll follow Sarah's Coffee Co., a small online business selling artisanal coffee beans through Shopify, Amazon, and Etsy, as our example throughout every chapter.

30 min read 12 chapters

Introduction

Course Structure: 12 Essential Chapters

Chapter 1: Understanding ecommerce accounting basics

What you'll learn: The fundamental difference between regular business accounting and ecommerce accounting, key terms, and why tracking every penny matters for online sellers.

Sarah's story begins: Meet Sarah who started selling coffee beans online but realized she was losing money despite good sales numbers.

Chapter 2: Setting up your chart of accounts

What you'll learn: How to organize your financial accounts specifically for ecommerce, including platform-specific categories and expense types.

Sarah's challenge: Sarah learns to separate her Shopify sales from Amazon FBA revenue and discovers hidden costs she never tracked.

Chapter 3: Revenue recognition and multi-channel sales

What you'll learn: When to record revenue, handling returns and refunds, and managing income from multiple platforms.

Sarah's breakthrough: Understanding why her December sales spike didn't mean December profits, and how platform timing affects cash flow.

Chapter 4: Cost of goods sold (COGS) tracking

What you'll learn: Calculating true product costs, inventory valuation methods, and tracking costs across different sales channels.

Sarah's reality check: Discovering her premium coffee blend was actually losing money when she included all hidden costs.

Chapter 5: Platform fees and transaction costs

What you'll learn: Understanding and tracking all platform fees, payment processing costs, and how they impact profitability.

Sarah's surprise: Learning that her "best selling" product on Amazon was barely profitable after FBA fees.

Chapter 6: Inventory management and valuation

What you'll learn: Different inventory methods (FIFO, LIFO, weighted average), managing inventory across platforms, and preventing stockouts.

Sarah's system: How she tracks 15 different coffee varieties across three platforms without losing her mind.

Chapter 7: Expense categorization and deductions

What you'll learn: Properly categorizing business expenses, maximizing tax deductions, and tracking mixed-use expenses.

Sarah's tax savings: Discovering legitimate deductions she missed that saved her $3,200 in taxes.

Chapter 8: Sales tax compliance made simple

What you'll learn: Understanding nexus laws, collecting sales tax, and filing requirements for online sellers.

Sarah's compliance: How she handles sales tax in 12 states without hiring an expensive accountant.

Chapter 9: Cash flow management for seasonal businesses

What you'll learn: Forecasting cash needs, managing seasonal fluctuations, and avoiding cash crunches during peak seasons.

Sarah's planning: How she prepares for the holiday rush and manages inventory purchases with limited cash.

Chapter 10: Financial statements that make sense

What you'll learn: Creating and understanding profit & loss statements, balance sheets, and cash flow statements for ecommerce.

Sarah's clarity: Finally understanding what her numbers mean and how to use them for better decisions.

Chapter 11: Key performance indicators (KPIs) for profitability

What you'll learn: Essential metrics every ecommerce seller should track, benchmarking performance, and identifying problem areas.

Sarah's dashboard: The five numbers she checks daily to stay profitable and grow strategically.

Chapter 12: Year-end procedures and tax preparation

What you'll learn: Closing your books, preparing for taxes, working with accountants, and planning for next year.

Sarah's success: How proper year-end procedures helped her secure a business loan and plan for expansion.

Course Features

Consistent example business

Every chapter follows Sarah's Coffee Co. as it grows from a startup to a successful multi-channel business, making concepts relatable and practical.

Real-world scenarios

Each chapter includes actual problems online sellers face, not theoretical accounting concepts that don't apply to ecommerce.

Practical templates

Downloadable spreadsheets, checklists, and templates that you can customize for your business.

Platform-specific guidance

Detailed instructions for Shopify, Amazon FBA, Etsy, eBay, and other major platforms.

Progressive complexity

Starts with basic concepts and builds to advanced strategies, perfect for beginners who want to grow their knowledge.

Target Audience

Perfect for:

  • New ecommerce sellers who are confused about their finances
  • Established sellers who know they're missing important financial details
  • Anyone who wants to understand their true profitability
  • Sellers preparing for business growth or financing
  • Online entrepreneurs tired of expensive accounting services

Not suitable for:

  • Large enterprises with complex accounting needs
  • Sellers looking for tax advice (we cover basics but recommend professional help)
  • Anyone wanting automated solutions without understanding the fundamentals

Learning Outcomes

After completing this course, you'll be able to:

  • Set up a complete accounting system for your ecommerce business
  • Calculate true profitability for each product and sales channel
  • Manage cash flow and seasonal fluctuations confidently
  • Prepare accurate financial statements and tax documentation
  • Make data-driven decisions to grow your business profitably
  • Work effectively with accountants and bookkeepers when needed

Chapter Format

Each chapter follows this structure:

  • Opening scenario with Sarah's Coffee Co.
  • Core concepts explained in simple terms
  • Step-by-step implementation with screenshots and examples
  • Common mistakes to avoid
  • Sarah's solution showing how concepts apply practically
  • Action items to implement immediately
  • Quick review of key takeaways

Bonus Resources

  • Template library: Accounting spreadsheets, expense trackers, and inventory management tools
  • Checklist collection: Monthly, quarterly, and annual accounting tasks
  • Platform fee calculators: Know your true costs before you sell
  • Cash flow forecasting tool: Plan for seasonal changes and growth
  • Tax deduction finder: Comprehensive list of ecommerce business deductions

Getting Started

Begin with Chapter 1 to meet Sarah and understand why ecommerce accounting is different from regular business accounting. Each chapter builds on the previous one, so we recommend reading in order for the best learning experience.

Ready to master your ecommerce finances? Let's start with the basics and build your confidence one chapter at a time.

 

Complete Table of Contents

Chapter 1: Understanding ecommerce accounting basics

Meet Sarah, an online coffee seller who thought she was profitable until she discovered the hidden world of ecommerce accounting. Learn why traditional accounting rules don't work for online businesses and discover the fundamentals every ecommerce seller needs to know to track their true profitability.

5 min read
Read

Chapter 2: Setting up your chart of accounts

Sarah discovers why generic small business accounting templates fail for ecommerce sellers. Learn how to organize your financial accounts to handle multi-channel sales, platform fees, and inventory complexities that make or break online businesses.

5 min read
Read

Chapter 3: Revenue recognition and multi-channel sales

Sarah thought revenue was simple until she discovered Amazon holds payments, Shopify processes immediately, and Etsy allows returns 60 days later. Learn when to actually record revenue and how timing differences across platforms can make or break your cash flow planning.

5 min read
Read

Chapter 4: Cost of goods sold (COGS) tracking

Sarah discovered her best-selling coffee blend was actually losing money when she included all hidden costs. Learn how to calculate true product costs across multiple platforms and identify which items are genuinely profitable after fees, shipping, and storage costs.

5 min read
Read

Chapter 5: Platform fees and transaction costs

Sarah thought she understood platform fees until Amazon charged her $400 in unexpected long-term storage fees. Discover the hidden fees that destroy ecommerce profits and learn proven strategies to minimize their impact on your bottom line.

5 min read
Read

Chapter 6: Inventory management and valuation

Sarah discovered she had $8,400 worth of coffee sitting in Amazon warehouses she forgot about, accumulating storage fees monthly. Learn how to track inventory across multiple locations, choose the right valuation method, and avoid costly mistakes that drain profits.

5 min read
Read

Chapter 7: Expense categorization and deductions

 Sarah discovered she was missing $3,200 annually in legitimate tax deductions because she didn't properly categorize her ecommerce expenses. Learn how to maximize deductions while maintaining IRS compliance and proper documentation for audit protection.

5 min read
Read

Chapter 8: Sales tax compliance made simple

Sarah thought sales tax was simple until she discovered the Supreme Court's Wayfair decision created obligations in 12 states she'd never heard of. Learn how to navigate multi-state sales tax compliance without drowning in paperwork or facing costly penalties.

15 min read
Read

Chapter 9: Cash flow management for seasonal businesses

Sarah's coffee business was thriving until the holiday season nearly killed it. Despite record sales, she ran out of cash for inventory and payroll because she didn't understand seasonal cash flow timing. Learn how to forecast cash needs and survive peak seasons without financial stress.

15 min read
Read

Chapter 10: Financial statements that make sense

Sarah's accountant handed her traditional financial statements that looked impressive but told her nothing about her business. Learn how to create ecommerce-specific financial reports that actually help you make better decisions and understand your true performance.

15 min read
Read

Chapter 11: Key performance indicators (KPIs) for profitability

Sarah was drowning in 47 different metrics until she discovered the five numbers that actually predict business success. Learn which KPIs matter most for ecommerce profitability and how to create a dashboard that guides decisions without causing information overload.

15 min read
Read

Chapter 12: Year-end procedures and tax preparation

 Sarah's first year-end closing took three weeks and cost $2,400 in accountant fees because her records were a mess. Learn how to close your books efficiently, prepare comprehensive tax documentation, and work strategically with professionals while planning for growth.

15 min read
Read

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Resource Details

Category
E-commerce Basics
Difficulty
Beginner
Chapters
12
Reading Time
30 minutes
Last Updated
Jul 25, 2025