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Ecommerce Accounting: A2X Accounting Review
A2X is a powerful ecommerce accounting tool that can transform the way your business manages ecommerce sales data. Here’s what you need to know about A2X.
A2X is an automated ecommerce accounting tool for Shopify, Amazon, and eBay ecommerce businesses. The A2X platform integrates directly with a broad range of third party apps and widely-used cloud accounting platforms such as Xero, simplifying reporting and saving time on administrative tasks.
What is A2X?
A2X is an accounting suite designed specifically for ecommerce businesses, streamlining ecommerce accounting and minimizing administrative friction.
A2X is built from the ground up to integrate directly with major ecommerce platforms such as Amazon and Shopify, minimising the amount of manual data entry involved in accounting and significantly improving accuracy.
The A2X accounting suite is ideal for businesses that manage and track large amounts of sales data, eliminating the needs to manually record sales transactions or prepare lengthy spreadsheets. Simple integration with major cloud accounting platforms such as Xero allows businesses to directly link A2X to existing accounting processes.
A2X delivers a major advantage over other accounting tools designed for ecommerce through a unique categorization tool that automatically categorizes and sorts every ecommerce transaction, delivering a summary of all expenses, sales, and other financial data points.
A2X Ecommerce Accounting
The large volume of data collected and sorted by A2X allows ecommerce businesses to access extreme visibility into their cash flow, accounting for all fees, expenses, and refunds — using A2X, it’s possible to generate reports on the fly, or rapidly reconcile payouts on any sales platform then immediately make the relevant changes to a company ledger.
The ecommerce functionality of A2X isn’t limited to sales tracking. Using A2X, it’s possible to track the cost of goods sold as well as the margins of moving products then cross-reference with business financials on accounting software such as Xero.
Similarly, it’s possible to reconcile stock subsequent to receiving orders. Other features, such as the ability to generate monthly reports that present stock availability, value, or location can significantly accelerate the ecommerce accounting and business management process.
Importantly, A2X is suitable for ecommerce businesses of all sizes — the features and functionality of the A2X platform scale in sync with business size, allowing businesses to retain the same solution as their business grows through multiple pricing tiers.
In addition to integrating with Xero, Amazon, and Shopify, A2X provides integration with a variety of third party services that include inventory apps, tax calculators, PayPal, and point of sale software.
A2X Features and Functionality
The core functionality of A2X focused on finance reconciliation, allowing businesses to eliminate manual financial statement composition. The automated nature of A2X provides clear insight into any transaction error or discrepancies, streamlining the reconciliation between ecommerce sales channels and accounting platforms.
The multichannel support functionality of A2X allows businesses to track up to five different Amazon or Shopify accounts across multiple product lines. This functionality extends across multiple websites, tracking, reconciling and migrating financial data from disparate sites to accounting software such as Xero.
The rapid reconciliation functionality offered by A2X consolidates transaction history across multiple channels regardless of volume, breaking down a broad spectrum of data points and allowing businesses to make adjustments as necessary.
A2X pairs sales records from ecommerce platforms with cost of goods sold, providing ecommerce businesses with the ability to track and manage gross margin. Using A2X’s COGS functionality, it’s possible to quickly and easily adjust margins in order to tweak performance or respond to market competition.
In addition to reconciliation features, A2X provides inventory value calculation features that present inventory values directly on balance sheets. It’s possible to create rules that automatically deducts the total cost of goods sold from listed inventory then assigns the result under COGS expenses.
Automated Reporting With A2X
Monthly reporting can be a complex and time consuming process for ecommerce businesses. A2X provides an automated report generation feature that automatically generates fulfillment reports at the end of each month.
A2X reports can be used to assess the availability of stock, check stock value, or identify stock location. The robust feature set of A2X not only streamlines financial reconciliation, but also simplifies the entire inventory management process.
A2X Plans and Pricing
Ecommerce accounting package A2X provides different pricing structures for different ecommerce platforms.
A2X for Amazon, for example, starts at $19 per month for ecommerce businesses operating in a single country through the “mini” plan. The mini plan tracks up to 200 orders per month within a single Amazon marketplace, with up to three months transaction history as well as Amazon Pay reconciliation and email support.
The A2X Amazon starter plan provides tracking for up to 1,000 orders per month with unlimited marketplaces per region, as well as COGS tools, FBA stock value calculation, and Amazon merchant integration for $49 per month. The standard plan, which tracks up to 5,000 orders, is priced at $69, while the premium plan tracks up to 10,000 orders per month for $139 with greatly expanded functionality.
The pricing structure for A2X services vary based on the platform used — Shopify and eBay plans range from $19 to $99, while multi-platform plans that allow businesses to track and manage sales across both Amazon and Shopify range from $69 to $179 per month. A2X allows businesses to test drive the A2X suite on a free trial basis.
A2X is a relatively new addition to the array of accounting tools available to ecommerce businesses, but provides a significant advantage over traditional accounting platforms. By eliminating human error and automatically collecting, matching, and categorizing sales data, A2X minimizes administrative friction and helps ecommerce businesses take control over reconciliation.
Setting up cloud based accounting tools for your ecommerce business can dramatically improve efficiency. If you are interested in learning more about cloud accounting tools, reach out to Fullstack for detailed guidance today.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, crypto and entrepreneurs.