Understanding Revenue Recognition: Principles, Steps, and Examples
Key Takeaways 1. The revenue recognition principle mandates that revenue…
Sold $100K on Amazon but only got $68K in your bank? That’s normal. The rest went to fees, refunds, ads, and taxes.
Regular bookkeepers don’t get ecommerce. We do.
We track every sale, fee, and refund across all your channels, including Amazon, Shopify, Walmart, and more. You get accurate financials every month.
Happy Clients
Years in industry
Strong team

Most bookkeepers make the same critical mistakes with ecommerce accounting, and they’re costing you thousands.
We’ve seen these errors in nearly every business that switches to us, from small Amazon sellers to multi-channel brands doing millions in revenue.
The worst part?
Most owners don’t even know these problems exist until tax season hits or they try to raise funding.
Here’s what we fix:
Over the years, we’ve met many e-commerce brands facing similar issues, and we helped them to regain control of their finances when things got messy behind the scenes. If you’re nodding your head at any of these challenges that our clients faced before working with us, then trust me, you’re not alone.
Stop spending 20+ hours a month on bookkeeping. We take care of everything so you can focus on growing your business.


We know Amazon inside and out, from reconciling FBA fees and reimbursement claims to tracking FBM shipments and marketplace facilitator tax rules. Whether you use Amazon warehouses or ship directly, we manage fees, refunds, and state taxes. This keeps your financial records accurate in Seller Central.
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Your Shopify store deserves accounting that keeps up with your growth. We sync directly with Shopify to track every order, payment processor fee (Shopify Payments, PayPal, Stripe), and fulfillment cost. From abandoned cart recovery to multi-currency transactions, we ensure your books match your store's activity, down to the cent.
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BigCommerce sellers need accounting that handles enterprise-level complexity without the enterprise price tag. We integrate seamlessly with your BigCommerce store to track orders across multiple storefronts, manage complex tax rules, and consolidate data from various payment gateways. Whether you're B2B, B2C, or both, we've got you covered.
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eBay's fee structure is notoriously complex, including final value fees, promoted listings, store subscriptions, and PayPal vs. managed payments. We untangle it all. Our team reconciles every transaction, tracks inventory across fixed-price and auction listings, and ensures sales tax compliance across states where you have nexus.
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Selling on Walmart Marketplace means navigating commission structures, fulfillment fees (WFS), and Walmart's strict performance metrics. We handle the accounting complexity so you can focus on winning the Buy Box. From referral fees to returns processing, we track every dollar moving through your Walmart channel.
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Operations Manager
Allison is a Certified Public Accountant (CPA) and a member of the AICPA. She oversees operations at Ledger Labs, ensuring accurate, compliant financials for hundreds of clients. With experience in both public and private accounting, she builds scalable systems that support fast-growing ecommerce businesses.

Operations Manager
Allison Rinehimer is the Operations Manager at Ledger Labs, where she combines her CPA expertise with a forward-thinking approach to accounting operations and team efficiency. A solutions-oriented problem-solver, she brings a unique ability to align strategic vision with day-to-day execution. With experience across both public and private accounting, Allison leads the development of internal systems that support scalable, high-impact client delivery—powering hundreds of engagements with accuracy and compliance.
Education:

Accountant
Matt brings 7+ years of accounting experience across ecommerce, SaaS, and technology. He specializes in financial reporting, month-end close management, and ERP implementations (including NetSuite transitions). Matt ensures our clients get accurate, timely financials they can rely on for growth decisions.

Accountant
Matt Hidalgo is an Accountant at Ledger Labs, currently on a development path to become a Controller. With over seven years of experience across healthcare advertising, e-commerce, and technology, Matt delivers detail-driven accounting insights that improve financial processes and enhance operational efficiency. He is recognized for his analytical mindset, precision, and ability to strengthen accounting systems in fast-moving environments.
Education:We start by diving into your entire multi-channel setup—Shopify, Amazon, Stripe, PayPal, and everything in between. As ecommerce specialist accountants, we analyze how revenue moves through your platforms, how inventory is tracked, and where the numbers stop lining up. We surface what’s broken and create a plan to clean it up. No more guessing—just a clear roadmap to accurate, scalable financials built for the pace of eCommerce.
Once the strategy is finalized, we execute with precision. That includes syncing your storefronts with accounting software, reconciling sales deposits, and mapping refunds, discounts, and inventory movements correctly. As e-commerce tax accountants, we also build systems to stay compliant with multi-state and international tax requirements. Internally, we create consistency; externally, we establish documentation and processes that stand up under audit, due diligence, or platform reviews.
There’s no need for manual work where automation makes sense. Whether it’s syncing sales channels with your accounting platform, building auto-reconciliation workflows, or streamlining tax reporting, we create accounting systems tailored to how your store operates. We’ve built automation for fast-scaling Shopify brands, Amazon sellers, and omnichannel operators.
You’ll never have to chase numbers again. We create real-time dashboards that track cash, margins, ad spend, and SKU-level performance across all your sales channels. With specialized Shopify accountants and platform-native reporting, you get clarity without logging into five dashboards.
Over 2,000 ecommerce businesses have switched to us from DIY accounting or generic bookkeepers. Here’s the real difference:
| Feature | Generic Bookkeeper | DIY Accounting | Ledger Labs |
|---|---|---|---|
| Platform-Synced Bookkeeping | Manual imports with frequent errors and platform mismatches | You spend 20–30 hours/month downloading CSVs and reconciling | Automated, daily reconciliation across Shopify, Amazon, Stripe, and PayPal, fully mapped to your chart of accounts |
| Accurate COGS & Inventory Tracking | Generic cost assumptions with no inventory reconciliation or per-product visibility | You’re guessing inventory values in spreadsheets | SKU-level COGS tracking with real-time inventory valuation and true landed cost calculation |
| Multi-Channel Financial Consolidation | Disorganized reporting split between systems and spreadsheets | Separate spreadsheets per channel, you’re drowning in data | Clean consolidation across sales channels with unified reporting and seamless data flow |
| Sales Tax Compliance & Filing | Missed thresholds and late filings due to manual oversight or outdated systems | You’ll deal with it when audited (hopefully never) | Nexus monitoring, accurate sales tax mapping, and timely filing across all states and platforms |
| Profitability Reporting & SKU Analysis | Flat P&Ls with no breakdowns or actionable visibility | You know revenue, but not profit by product or channel | Clear dashboards showing profit margins by SKU, channel, ad campaign, and fulfillment method |
| Return & Refund Tracking | Refunds overlooked or double-counted, distorting revenue | Manually tracking refunds in separate spreadsheets | Fully reconciled returns, chargebacks, and partial refunds are reflected accurately in your financials |
| Real-Time Cash Flow Monitoring | Delayed cash flow statements and a lack of forecast accuracy (45-60 days behind) | You're guessing if you can afford that $200K inventory order | Daily insights into cash flow, payouts, liabilities, and working capital across all processors |
| Audit-Ready Financials & Documentation | Vague notes, missing context, and last-minute | "I'll figure it out at tax time" (famous last words) | Well-organized, documented entries with supporting detail for every |
| Ecommerce Specialist Access | Slow turnaround from generalized support teams with limited ecommerce experience | Google searches and Reddit forums are your "advisors." | Slack/email access to your dedicated ecommerce accountant for fast answers and strategic insight |
| Monthly Close Timeline | 30-45 days after month-end (too late to act on data) | Never (or quarterly at best when you remember) | Financial statements delivered by the 15th of every month, guaranteed |
| Monthly Cost | $500-1,000/month (for basic, often inaccurate work) | $0 cash, but 100+ hours of your time/month (worth $10K-20K) | Starting at $1,200/month for comprehensive ecommerce accounting services |
| Setup & Onboarding Time | 8-12 weeks (if they understand ecommerce at all) | Ongoing chaos with no clear system | 2-4 weeks to full platform integration and historical cleanup |
Find out what our customers are saying about our products.
We have a unique business, and almost all the accounting firms we have engaged so far have been unable to get a hold of our business. But Ledger Labs really took the bull by its horn. They understood our business better than us & created a very customized process & systems to streamline our accounting department. We now have detailed step-by-step process documentation, checklists & schedule of reports.
Amanda Fludd CEOLedger Labs found $18K in missed deductions that our old accountant completely missed—same books, same receipts, totally different results. That’s when I knew we were finally working with pros. Since then, they’ve helped us restructure expenses and make tax planning part of the daily flow, not just something we scramble on last minute.
Michael Smith CFOSeek qualified accountants and CPAs with 12+ years of experience serving clients in various industries like Retail, Ecommerce, Startups, Saas, Real estate, Manufacturing, Education, Professional services and more.
We work with all major platforms: Amazon (FBA & FBM), Shopify, Walmart, Etsy, eBay, TikTok Shop, and any sales channel you use. We also integrate with payment processors like Stripe, PayPal, Square, and Shopify Payments.
Yes, we work with ecommerce businesses worldwide, though we specialize in US-based sellers or those selling into the US market. We handle international transactions, multi-currency accounting, and cross-border tax implications.
We monitor your nexus footprint across all 50 states, register you where needed, configure your platforms to collect correctly, and file returns on time. We proactively track threshold changes so you stay compliant and avoid penalties.
We work with QuickBooks Online, Xero, NetSuite, ODOO, and Sage Intacct. If you're already using one, we'll optimize it. If you're starting fresh, we'll recommend the best fit based on your size and complexity.
You'll have direct access to your dedicated accountant via Slack or email for quick questions. We also schedule monthly review calls to walk through your financials and discuss strategy. Response time is typically within 24 hours.
Onboarding takes 2-4 weeks, depending on your complexity. We'll integrate your sales channels, clean up historical data if needed, set up a proper chart of accounts, and deliver your first monthly financials.
Yes. We provide SKU-level profitability reports showing margins by product, sales channel, and fulfillment method. You'll know exactly which products make money and which don't after all costs and fees.
Yes. We track inventory as an asset, calculate accurate COGS including landed costs (shipping, duties, freight), and provide real-time inventory valuation. We also integrate with inventory management systems like Finale, Inflow, and SkuVault.
We integrate directly with your sales channels, payment processors, inventory systems, and advertising platforms using tools such as A2X, Link My Books, and native API integrations. Everything syncs automatically, no manual data entry.
Yes, we prepare business tax returns (Form 1120, Form 1120S, Form 1065, Schedule C) and help you maximize ecommerce-specific deductions. Since we manage your books year-round, tax season is seamless, not chaotic.
From saving thousands to scaling fast — these stories highlight how we help businesses grow smarter with real financial strategy and execution.



From saving thousands to scaling fast — these stories highlight how we help businesses grow smarter with real financial strategy and execution.
Our multidimensional experience and wide exposure have been channelized beautifully in these articles!
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My main problem always has been to know my accurate profits & this is precisely what Ledger Labs helped me with. They went through my entire supply chain costs, my monthly operational expenses, and COGS and got me the correct costing of my goods and the cost of running the business. Now I know how much I need to sell & at what price I should sell it to be profitable.
Ariel Robinson CEO & Founder