eCommerce Bookkeeper

Are You Actually Making a Profit? The Hidden Costs Amazon Sellers Overlook

The Problem: Sales Look Great, But Where’s the Money?

You’re selling on Amazon or Shopify. Sales are rolling in, numbers look solid, and yet… your bank account isn’t reflecting that “success.” Sound familiar?

Here’s the deal: many eCommerce sellers focus on revenue but completely miss the hidden costs silently eating away at their profits—Amazon fees, refunds, storage costs, shipping, ads, and taxes. The result? You might be selling a ton but actually making way less than you think (or worse, losing money).

At Insogna CPA, a leading Austin, Texas CPA firm, we help Amazon and Shopify sellers stop the guesswork and start tracking real profits. Let’s break it down.

Why This Happens: The Profit Illusion

Amazon and Shopify make it super easy to see how much money is coming in but not how much is actually sticking around. You log in, see a big revenue number, and think, “Nice! Business is booming.” But those platforms aren’t exactly sending you an itemized list of every fee chipping away at that revenue.

Here’s what’s quietly draining your profits:

Amazon FBA Fees – Fulfillment, storage, and removal fees that sneak up fast.
Refund & Return Costs – Amazon keeps their cut when customers return products. And you? You’re left with the losses.
Advertising Costs – That PPC campaign driving traffic? It’s eating into your margins.
Storage & Warehousing Fees – Amazon’s long-term storage costs can be brutal.
Shipping & Packaging – Whether FBA or self-fulfillment, these costs add up fast.
Sales Tax & Income Tax – Spoiler alert: ignoring tax obligations doesn’t make them go away.

So, if you’re not tracking these properly, you could be breaking even (or worse) without even realizing it.

The Solution: Get Clear on Your Numbers (No More Guessing!)

If you want to run a truly profitable eCommerce business, you need more than just a sales dashboard—you need a clear picture of your actual profits. Here’s how to take control:

1. Track Every Fee & Expense (Yes, All of Them!)

Profit isn’t just “revenue minus product costs.” You need to account for every Amazon or Shopify fee, storage cost, shipping expense, and tax liability.

Working with a CPA in Austin, Texas (like Insogna CPA) ensures every single dollar is tracked properly so you know exactly where your money is going.

2. Stop Guessing Your COGS (Cost of Goods Sold)

COGS is more than just what you pay your supplier—it includes manufacturing, packaging, shipping, storage, and Amazon fees. If you don’t calculate this correctly, you’re probably underpricing your products and leaving profit on the table.

At Insogna CPA, a top-rated Austin small business accountant, we make sure your COGS is dialed in so you price your products for actual profit and not just break-even sales.

3. Automate Your Bookkeeping & Get Real-Time Insights

Amazon reports are helpful but not enough. You need bookkeeping that integrates sales, expenses, and tax liabilities all in one place.

At Insogna CPA, one of the top Austin accounting firms, we automate bookkeeping for eCommerce businesses so you can:

See your real profits anytime (no more spreadsheet headaches).
Track every cost automatically.
Make smarter financial decisions based on actual data.

4. Plan for Taxes Before They Surprise You

Too many sellers forget about sales tax, income tax, and self-employment tax—until they get hit with a massive bill. Instead of scrambling, let’s plan ahead so you always know what’s coming.

As a trusted tax advisor in Austin, we’ll help you:
🔹 Stay compliant with tax laws.
🔹 Minimize your tax bill (legally, of course).
🔹 Avoid “uh-oh” moments when tax season rolls around.

Let’s Get Your Profits Right

If you’re not 100% sure your Amazon or Shopify business is truly profitable, it’s time to get clear on your numbers.

At Insogna CPA, one of the top CPA firms in Austin, Texas, we specialize in helping eCommerce sellers track every hidden cost, automate bookkeeping, and maximize profits with real-time insights.

Don’t just assume you’re making money—know for sure. Schedule a free consultation today and let’s get your eCommerce business financially dialed in.

eCommerce Accounting 101: Everything You Need to Know

Running an eCommerce business? You’re crushing sales, your Shopify or Amazon store is buzzing, and things seem to be going great. But when you check your bank account, it’s not quite adding up. Sound familiar?

Here’s the deal: revenue means nothing if you don’t know your real profit. Between platform fees, shipping costs, and sneaky expenses, it’s easy to assume you’re making more than you actually are. That’s where smart accounting comes in.

At Insogna CPA, a leading CPA firm in Austin, Texas, we help eCommerce sellers stop guessing their profits and start knowing their numbers. Let’s break it all down (in plain English).

Revenue vs. Profit: Why “Sales” Don’t Tell the Full Story

Your store is making sales, but are you actually making money? Let’s clear up some common financial terms so you can track what matters.

1. Gross Revenue vs. Net Revenue: Know the Difference

Gross Revenue = Total sales before expenses
Net Revenue = What’s left after deducting refunds, discounts, and platform fees

Example: Your store does $50,000 in sales, but after refunds ($5,000) and platform fees ($2,000), your net revenue is actually $43,000—not $50K.

If you’re only looking at gross revenue, you’re not seeing the whole picture.

2. Cost of Goods Sold (COGS): The Real Cost of Selling

COGS includes everything it takes to get your product into a customer’s hands:

Raw materials & manufacturing
Shipping & packaging
Amazon FBA or warehouse storage fees

Why this matters: If your product sells for $50 but your COGS is $30, your gross profit is $20 per sale—not $50.

Many eCommerce sellers forget to calculate COGS correctly, leading to underpricing their products or thinking they’re making more money than they actually are.

3. Profit Margins: The Number That Actually Counts

Your profit margin is what’s left after all your costs are covered. It’s the real test of whether your business is actually profitable.

Formula: (Net Revenue – COGS) ÷ Net Revenue = Profit Margin %

A healthy profit margin? 25-40% (depending on your niche). If yours is lower, it’s time to revisit pricing, expenses, or operations.

How to Track Expenses (and Save on Taxes While You’re At It)

Every dollar you don’t track is money you might be overpaying in taxes. Here’s how to categorize expenses the smart way:

Deductible eCommerce Business Expenses:

Advertising & Marketing: Facebook ads, influencer sponsorships, email marketing
Software & Subscriptions: Shopify, QuickBooks, inventory management tools
Shipping & Packaging: USPS, FedEx, UPS, custom packaging
Storage & Fulfillment Fees: Amazon FBA, 3PL warehouses
Office Equipment: Laptops, desks, even your home office setup

Pro tip: Keeping clean records isn’t just good bookkeeping, it saves you thousands on taxes. As an experienced Austin tax accountant, Insogna CPA helps eCommerce sellers maximize deductions and keep more money in their pocket.

Automate Your Bookkeeping (Because You Have Better Things to Do)

Manually tracking sales and expenses? No thanks. Cloud-based accounting software automates bookkeeping so you can focus on growing your business.

Best Accounting Tools for eCommerce:

QuickBooks Online: Connects with Shopify, Amazon, PayPal
Xero: Ideal for scaling businesses, especially if you sell internationally
A2X: Auto-syncs your Amazon & Shopify sales into accounting software

Why this matters: Automation saves you time, reduces human error, and gives you real-time financial insights. As a leading Austin accounting firm, we help eCommerce sellers set up and optimize these tools so they work for you, not against you.

Let’s Make Sure Your eCommerce Business is Actually Profitable

If you’re running an eCommerce business, understanding your real profit margins, expenses, and tax deductions is essential, otherwise, you’re just guessing.

At Insogna CPA, one of the most trusted CPA firms in Austin, Texas, we help online sellers track every hidden cost, automate bookkeeping, and stay tax-compliant so they can grow profitably.

🚀 Want expert guidance? Let Insogna CPA help you take control of your finances! Schedule a free consultation today!

eCommerce Accounting 101: Setting Your Business Up for Success

So, you’ve launched your eCommerce business—congrats! You’re selling products, growing your brand, and making things happen. But here’s the thing: if your accounting isn’t on point, your business might feel like it’s running on a shaky foundation.

Don’t worry. You’re not alone. At Insogna CPA, we’ve helped plenty of eCommerce entrepreneurs (just like you) streamline their accounting, ditch the stress, and focus on growing their business. Let’s dive into the essentials of eCommerce accounting, break it down into bite-sized pieces, and get you on the right track.

Step 1: Nail the Basics of eCommerce Accounting

If accounting feels like a foreign language, we’ve got you covered. Here’s what you need to know:

1. Bookkeeping: Think of It as Your Financial Diary

Bookkeeping is where it all starts. It’s about keeping track of every sale, expense, and fee. Basically everything happening with your money. You’re likely juggling platforms like Shopify, Etsy, or Amazon, and let’s be real, that can get messy fast.

The solution? Automation! We can help you sync your sales platforms with accounting software like QuickBooks Online. It’s like giving your bookkeeping a personal assistant. Everything gets tracked without you lifting a finger.

2. COGS (Cost of Goods Sold): What Does It Actually Cost to Sell Your Stuff?

COGS sounds fancy, but it’s really just the cost of making or buying your products. Think materials, manufacturing, packaging, and shipping.

Here’s why it matters: If you sell a product for $50, but your COGS is $20, your gross profit is $30. But you’ll also need to cover other expenses like ads or fees from your sales platforms. Knowing your COGS gives you a clear picture of how much you’re actually making.

At Insogna CPA, we help you figure this out so you can price your products with confidence (and avoid any “uh-oh” moments later).

3. Gross Revenue vs. Net Revenue: Why You Need to Know Both

Gross revenue = total sales. Net revenue = what you actually keep after expenses like refunds, advertising, and platform fees.

Here’s a truth bomb: gross revenue might look great on paper, but net revenue tells you how profitable your business really is. If the difference between the two surprises you, don’t sweat it. We can help you track both with ease.

Step 2: Pick the Right Accounting Software

The right tools can make or break your workflow. But don’t worry, you don’t need to become a software expert. That’s what we’re here for.

Go for Automation: Look for tools that sync with your platforms and payment processors. QuickBooks Online and Xero are great options.
Think Long-Term: Your software should grow with your business. Scalability is key.
Get Expert Advice: Not all tools work for every business. We can help you choose the right one and set it up to run like a dream.

Step 3: Work Smarter, Not Harder, with Insogna CPA

We know running an eCommerce business isn’t easy. That’s why we make accounting as painless as possible. Here’s what you get when you work with us:

Automation Magic: Say goodbye to manual data entry. We’ll integrate your sales platforms, payment processors, and inventory systems so everything works together seamlessly.
Tax Compliance, Simplified: From sales tax to income tax, we’ve got you covered. We’ll make sure you stay compliant and avoid any nasty surprises.
Clear Insights: Need to know where your money’s going? We’ll deliver real-time reports that break it all down, so you can make smart decisions fast.

We’re not just here to crunch numbers, we’re here to help you crush your goals.

Let’s Make Your Accounting Work for You

You didn’t start your eCommerce business to spend hours staring at spreadsheets or Googling tax rules. That’s where we come in. At Insogna CPA, one of the top CPA firms in Austin, Texas, we help eCommerce entrepreneurs like you build solid financial foundations.

👉 Schedule a free consultation today and let’s get your business set up for success—because you deserve an accounting team that’s as invested in your growth as you are.

Mixing Personal and Business Finances? Here’s How to Protect Your Profits

Running a business involves countless decisions, and one common mistake many entrepreneurs make—especially in the startup phase—is mixing personal and business finances. It seems harmless at first, but this can quickly lead to missed deductions, tax headaches, and even legal risks.

If you’re blending accounts or unsure how to separate expenses properly, you’re not alone. As a trusted accountant in Austin, we’ve seen this challenge affect many small businesses. Let’s break down why it happens, the risks involved, and simple steps you can take to protect your profits while staying compliant.

Why Mixing Personal and Business Finances Happens

It’s easy for business owners to blur financial lines, especially when launching a new venture. Here’s why:

Startup Costs Paid Out of Pocket: Many small business owners use personal funds for early purchases.
Lack of Clear Systems: Without a dedicated business account, expenses often mix together.
Cash Flow Issues: If revenue is inconsistent, some owners dip into personal accounts to cover expenses.

While it may seem convenient, this habit can create significant financial risks.

The Risks of Mixing Personal and Business Finances

Not keeping your finances separate can impact your tax obligations, compliance, and even personal liability. Here’s how:

Increased Tax Liability:
Blended accounts make it difficult to track deductible expenses, often leading to missed tax-saving opportunities. A small business CPA in Austin can ensure you capture every eligible deduction.
IRS Audit Risk:
The IRS closely monitors mixed financial records. Without clear documentation, you risk triggering an audit. Working with an experienced Austin accounting firm can help avoid this.
Legal Exposure:
For LLCs and corporations, commingling funds could jeopardize the legal protection separating personal assets from business liabilities.
Poor Financial Clarity:
Blended accounts make it harder to assess your business’s profitability and performance accurately.

The Solution: Steps to Separate Personal and Business Finances

Protect your profits with these simple strategies:

Open a Dedicated Business Bank Account

Create a business-specific checking account for all business transactions.
Deposit income and pay expenses solely from this account.

Why It Matters: A separate business account simplifies tax filings and provides a clear financial trail. If you need help setting this up, a CPA in Round Rock, TX can ensure proper structuring.

Get a Business Credit Card

Apply for a credit card exclusively for business expenses.
Avoid personal purchases on the card for clean record-keeping.

Why It Matters: Clear separation simplifies expense tracking for tax season. An accounting firm in Austin can help you set up proper financial systems for this.

Implement Professional Bookkeeping Tools

Use accounting software like QuickBooks Online for automated tracking.
Reconcile your books monthly to ensure accuracy.

Why It Matters: Proper bookkeeping prevents financial errors and ensures every expense is categorized correctly. At Insogna CPA, we specialize in accounting services in Austin and can help implement these tools effectively.

Pay Yourself Properly

Instead of randomly transferring money from business to personal accounts, pay yourself through structured payroll or owner’s draws.

Why It Matters: Formal payments keep your financial records clean and ensure IRS compliance.

Work with a CPA for Ongoing Guidance

A small business CPA in Austin, TX can help you:
- Review your business structure for optimal tax benefits.
- Identify overlooked deductions.
- Stay compliant with evolving tax laws.

Why Choose Insogna CPA for Business Finance Management?

At Insogna CPA, we specialize in helping business owners establish proper financial practices. As one of the top accounting firms in Texas, we provide:

Customized Accounting Services in Austin: Personalized solutions for startups, LLCs, and corporations.
Expert Bookkeeping Tools Setup: We help you implement tools like QuickBooks Online for efficient tracking.
Ongoing Support: From filing taxes to financial forecasting, our Austin accounting firm provides year-round guidance.

Take Control of Your Business Finances Today

Mixing personal and business finances can create unnecessary stress, risk, and missed opportunities for tax savings. Don’t wait until tax season—let Insogna CPA, a leading CPA firm in Austin, Texas, help you implement smart financial practices today.

👉 Contact us now for expert guidance in keeping your business finances separate, compliant, and optimized for success.

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Breaking Down Tax Filings for Multi-Business Owners: What You Need to Know

Managing multiple businesses comes with unique challenges—especially during tax season. From understanding tax structures to keeping accurate records for each entity, staying compliant and maximizing benefits can feel overwhelming. Whether you’re working with a tax accountant in Austin or handling it solo, here’s what you need to know to simplify the process.

How Business Structures Impact Tax Filings

The type of entity your businesses are registered as—LLC, corporation, or partnership—affects how taxes are filed:

LLCs (Single- or Multi-Member): Single-member LLCs typically report income on a personal tax return using Schedule C, while multi-member LLCs require Form 1065 filings. An experienced CPA in Austin, Texas can help you navigate the nuances of filing requirements.
Corporations: S-Corps and C-Corps have different rules for reporting income and deductions. A personal CPA in Austin ensures compliance while exploring strategies to reduce tax burdens.

Pro Tip: Each business entity must be treated independently for tax purposes. Consult with one of the top accounting firms in Texas Insogna CPA to ensure accuracy.

Why You Need Tools Like QuickBooks Online

Juggling multiple businesses demands precise financial tracking, and tools like QuickBooks Online are a game-changer for owners:

Separate Financial Records: Each business needs its own set of books. An Austin accounting service can help you manage accounts effectively and maintain compliance.
Real-Time Expense Tracking: Platforms like QuickBooks allow you to monitor cash flow and categorize expenses easily.
Simplified Reconciliation: Reconciling books monthly ensures your tax filings align with your records.

Partnering with one of the best CPA firms in Austin, like Insogna CPA, ensures these systems are set up correctly and maintained efficiently.

Maximizing Deductions with Startup Costs

Startup costs, often overlooked, can provide significant tax savings. If you’ve recently launched a business, consult an Austin small business accountant to categorize and deduct expenses properly:

Eligible Costs: Market research, equipment, advertising, and legal fees incurred before opening.
How to Claim: Deduct up to $5,000 in your first year if total costs are under $50,000, and amortize the rest over 15 years.

A tax advisor in Austin ensures these benefits aren’t missed, positioning your business for success from the start.

The Importance of Reconciling Books for Multi-Business Owners

Accurate bookkeeping is the cornerstone of proper tax filings. Failing to reconcile your records can result in missed deductions or inaccuracies that trigger audits. Here’s how to stay ahead:

Monthly Reconciliation: Regularly align financial records with bank statements to detect discrepancies.
Professional Help: Work with an accounting firm in Austin like Insogna CPA to categorize expenses and ensure compliance.

For multi-business owners, clear financial records are critical. Let your local Austin, TX accountants guide you through the process seamlessly.

Avoid Penalties with Timely Filings

Missing deadlines or filing inaccurately can lead to penalties and interest, especially for multi-business owners. With guidance from an Austin, TX CPA firm, you can avoid these risks.

Common Mistakes: Filing the wrong forms, misreporting income, or missing estimated tax payments.
Solution: Partner with a small business CPA in Austin, TX to ensure every requirement is met accurately and on time.

Planning for the Future with Insogna CPA

Tax filing is just the beginning. Partnering with a proactive accounting service like Insogna CPA helps you prepare for growth and stay ahead of legislative changes:

Strategic Planning: Optimize tax strategies and evaluate the best entity structures for future expansion.
Long-Term Compliance: From tax updates to new deduction opportunities, our team keeps you informed and prepared.

With offices serving Austin and surrounding areas like Round Rock, we’re one of the leading CPA firms in Austin, Texas for a reason.

Why Multi-Business Owners Choose Insogna CPA

Managing taxes for multiple businesses doesn’t have to be stressful. Insogna CPA, one of Austin’s accounting services leaders, offers:

Tailored Guidance: Personalized solutions for every business entity.
Proactive Approach: Our team keeps you compliant while maximizing tax benefits.
Advanced Tools: We implement tools like QuickBooks Online to simplify bookkeeping.

As one of the most trusted accounting firms in Austin, Texas, we help you focus on growing your businesses while handling the complexities of tax season.

Take the Next Step Toward Simpler Tax Filings

Multi-business tax filings require strategy, precision, and expertise. Insogna CPA, a top-rated Austin accounting firm, will guide you every step of the way. From managing startup costs to reconciling books and filing taxes on time, we ensure your businesses thrive.

Contact us today to simplify your taxes and maximize your deductions. Trust Insogna CPA—your partner in financial success.

Manual Reconciliations Slowing You Down? Simplify with Expert Accounting Support

Does this sound familiar? You’re running your eCommerce business, juggling payment platforms, inventory systems, and accounting software, and then it hits you—reconciliation is a nightmare. Thousands of transactions need matching, and you’re stuck manually sorting through it all.

Not only is this process slow, but it’s also error-prone. One mismatch can throw off your entire financial picture. If you’re in Austin, Texas, or the surrounding area, and this struggle feels all too real, keep reading.

Let’s explore why this happens and, more importantly, how you can fix it.

Why Manual Reconciliations Are Dragging You Down

Here’s the problem: your platforms aren’t talking to each other. Payment processors like Stripe, inventory tools like Shopify, and accounting software like QuickBooks all function in silos. Without automated syncing, you’re left manually matching every transaction.

This creates:

Missed deadlines because you’re spending too much time on repetitive tasks.
Inaccurate financial reports caused by human error.
Burnout for you and your team, as reconciling eats into hours you don’t have.

Whether you’re a small business looking for a CPA in South Austin or an eCommerce owner seeking Austin accounting services, this isn’t the way to grow.

Let’s Solve This Together

Here’s the good news: you don’t have to keep struggling. Automated syncing is the solution, and we can help you get there.

Imagine this:

Your payment platforms, inventory systems, and accounting software all sync seamlessly.
Transactions automatically update in real-time, so no more hours spent on manual reconciliations.
Your financial reports are accurate, reliable, and ready when you need them.

At Insogna CPA, we’ve helped countless businesses in Austin, Texas, and beyond transition from tedious manual processes to streamlined automation.

Why Work with Insogna CPA?

We’re not just another accounting firm in Austin. We specialize in helping businesses like yours eliminate accounting headaches. Here’s how we do it:

We analyze your current setup to identify what’s slowing you down.
We implement automated syncing tools that integrate with platforms like Shopify, Stripe, and QuickBooks Online.
We train your team to ensure everyone is confident in using the new systems.
We provide ongoing support, so as your business scales, your accounting systems grow with you.

Whether you’re searching for the best CPA in Austin or exploring options for CPA firms in Round Rock, TX, we’ve got you covered.

Let’s Talk About Your Business

At Insogna CPA, we’re not just about numbers—we’re about helping you succeed. As one of the leading CPA firms in Austin, TX, we combine cutting-edge technology with a personal touch to make your accounting simple, accurate, and efficient.

You deserve better than tedious reconciliations. Let’s eliminate the manual work, reduce errors, and give you back the time you need to focus on growth.

👉 Ready to reclaim your time and simplify your accounting? Contact Insogna CPA today. We’re here to help businesses in Austin, Texas, and beyond transform their financial systems and achieve uncompromised success.