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E-Commerce Chart of Accounts Template (QuickBooks & Xero)

Why a Generic Chart of Accounts Fails for E-Commerce

The default chart of accounts in QuickBooks and Xero is designed for service businesses. It has a handful of income accounts, basic expense categories, and simple asset/liability accounts. For an e-commerce seller, it falls apart immediately:

  • There's no home for marketplace processing fees (Amazon referral fees, Shopify transaction fees, Stripe charges)
  • Refunds and returns get lumped into miscellaneous expenses
  • Sales tax collected on behalf of states or tax authorities has no liability account
  • Marketplace clearing accounts — needed when a payout doesn't equal gross sales — don't exist
  • Shipping revenue and shipping expense are treated as the same thing

A purpose-built e-commerce chart of accounts solves all of this upfront, so every settlement you process maps cleanly to the right account.

The Template

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Below is a recommended chart of accounts structure for e-commerce sellers. Account numbers follow QuickBooks-style conventions (1000s = Assets, 2000s = Liabilities, 4000s = Revenue, 5000s = COGS, 6000s = Expenses). Xero uses names rather than numbers, so the account names translate directly.

Assets (1000–1999)

Account Number Account Name Notes
1000 Checking Account Primary bank account
1010 Savings / Reserve Account Operating reserve
1100 Amazon Seller Account Balance Clearing: funds held by Amazon
1110 Shopify Balance Clearing: Shopify Payments balance
1120 Etsy Payment Account Clearing: Etsy holds
1130 eBay Managed Payments Balance Clearing: eBay holds
1140 PayPal Balance Clearing: PayPal available balance
1150 Stripe Balance Clearing: Stripe available balance
1160 Square Balance Clearing: Square available balance
1200 Inventory Asset Cost of goods on hand
1210 Inventory In Transit Goods shipped but not received
1300 Prepaid Expenses Prepaid software, ads, insurance

Why marketplace clearing accounts matter: When Amazon pays out $3,450 to your bank, your gross sales may have been $4,120. If you only record the deposit, you lose the detail. The clearing account holds the gross sales credit; fees and refunds debit against it; and the net deposit moves to your bank — leaving the clearing account at zero.

Liabilities (2000–2999)

Account Number Account Name Notes
2000 Accounts Payable Vendor invoices
2100 Sales Tax Payable — US State/local sales tax collected
2110 VAT Payable (UK/EU) VAT collected for HMRC/EU authorities
2120 GST/HST Payable (CA/AU) Canadian or Australian GST collected
2200 Tips Payable Square/other tips owed to employees
2300 Gift Card Liability Unredeemed gift card balances
2400 Customer Deposits Pre-orders, layaway balances
2500 Credit Card / Line of Credit Short-term borrowing
2900 Deferred Revenue Subscription income not yet earned

Revenue (4000–4999)

Account Number Account Name Notes
4000 Product Sales Revenue Core product income
4010 Shipping Revenue Shipping charged to buyers
4020 Gift Wrapping Revenue Gift wrapping fees
4030 Platform Fee Income Stripe Connect / marketplace app fees
4040 Other Income Miscellaneous credits
4100 Sales Returns & Allowances Contra-revenue: refunds to buyers
4110 Sales Discounts Contra-revenue: promotions, coupons
4120 Chargeback Losses Dispute reversals (net of recovered amounts)

Cost of Goods Sold (5000–5999)

Account Number Account Name Notes
5000 Cost of Goods Sold Direct product cost
5010 Shipping Cost — Outbound FBA fulfillment or own shipping
5020 Returns Processing Cost Cost to receive and restock returns
5030 Inventory Write-Offs Damaged, expired, or lost inventory

Marketplace & Payment Fees (6000–6099)

Account Number Account Name Notes
6000 Amazon Referral Fees % of sale charged per transaction
6010 Amazon FBA Fulfillment Fees Pick, pack, ship per unit
6020 Amazon Storage Fees Monthly/long-term inventory storage
6030 Amazon Advertising Sponsored Products, Brands, Display
6040 Amazon Other Fees Refund admin fees, subscription, etc.
6050 Shopify Transaction Fees 0.5–2% on non-Shopify-Payments orders
6060 Shopify Subscription Monthly platform fee
6070 Etsy Transaction Fees 6.5% per sale
6080 Etsy Listing Fees $0.20 per listing
6090 eBay Final Value Fees % of sale + fixed fee
6100 Walmart Referral Fees Walmart marketplace commission
6110 Stripe Processing Fees 2.9% + $0.30 per transaction
6120 PayPal Processing Fees PayPal transaction charges
6130 Square Processing Fees 2.6% + $0.10 in-person
6140 Dispute / Chargeback Fees $15 Stripe / $20 PayPal per dispute
6150 Currency Conversion Fees FX conversion charges

General Expenses (6200–6999)

Account Number Account Name Notes
6200 Advertising & Marketing Off-marketplace ads, email, influencer
6210 Software & Subscriptions Accounting tools, inventory apps
6220 Professional Fees Bookkeeper, accountant, lawyer
6230 Bank & Payment Fees Bank charges, ACH fees
6240 Packaging Materials Boxes, tape, labels
6250 Office & Admin Workspace, supplies
6260 Insurance Business insurance
6270 Payroll & Contractors Staff wages, freelancers
6280 Depreciation Equipment, machinery

Mapping Marketplaces to This Template

Once your chart of accounts is set up, here's how each marketplace's settlement maps to it:

Marketplace Revenue Account Fee Accounts Tax Account
Amazon Product Sales (4000) 6000–6040 Sales Tax Payable (2100)
Shopify Product Sales (4000) 6050–6060 Sales Tax Payable (2100)
Etsy Product Sales (4000) 6070–6080 Sales Tax Payable (2100)
eBay Product Sales (4000) 6090 Sales Tax Payable (2100)
Walmart Product Sales (4000) 6100 Sales Tax Payable (2100)
Stripe Product Sales (4000) 6110, 6140
PayPal Product Sales (4000) 6120, 6140, 6150
Square Product Sales (4000) 6130 Sales Tax Payable (2100), Tips Payable (2200)

Setting Up in QuickBooks Online

  1. Go to Accounting > Chart of Accounts > New
  2. Select the account type and detail type
  3. Enter the account name and number
  4. For clearing accounts (marketplace balances), use Type: Other Current Assets, Detail Type: Other Current Assets
  5. For marketplace fee accounts, use Type: Expenses, Detail Type: Other Business Expenses

Setting Up in Xero

  1. Go to Accounting > Chart of Accounts > Add Account
  2. Enter the account code (optional in Xero) and name
  3. Select the account type
  4. For marketplace clearing accounts, use Type: Current Asset
  5. For fee accounts, use Type: Expense and assign a relevant tax rate

Put Your Chart of Accounts to Work

A well-structured chart of accounts is only useful if your settlement data maps to it correctly. SettleBooks reads your settlement files and automatically maps every line — fees, refunds, taxes, payouts — to the right account. Upload your first settlement and see your chart of accounts in action.

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