The challenge
An Amazon seller was tracking performance in a profit dashboard but could not understand why the accounts showed a loss.
Before comparing the figures, we needed to understand how each report treated sales, VAT and stock costs, and what each profit measure included.
What we did
Our team checked the accounting records against marketplace reports and bank payouts. We reviewed the year’s settlement reports alongside VAT returns, opening stock and the year-end balance sheet.
We also examined how the dashboard calculated the figures the seller was using. Our explanation covered gross and net sales, product-level VAT settings and whether cost of goods included VAT.
After explaining the differences, we created an Amazon-focused profit-and-loss report that brought the relevant income and direct costs together.
The result
The seller confirmed that the explanation made sense, and the custom report was created. The completed work gave the seller a documented explanation of the mismatch and a focused report for reviewing Amazon trading.
The takeaway
When a dashboard and the accounts disagree, check what each figure includes. Sales, VAT, stock and the scope of the profit calculation all need to be understood before drawing conclusions about profitability.