A monthly record review helps ecommerce sellers understand what they earned, what they spent, and what cash is actually available. Start with reports from each sales channel, payment processor, and bank account, then compare them with your bookkeeping records. Consistent checks can uncover missing deposits, duplicated expenses, unexpected fees, or inventory costs recorded in the wrong period. Use this checklist to review the key numbers and resolve differences before they complicate tax preparation or business decisions.
Reconcile Sales and Deposits
Export a sales report from every marketplace and online store. Review gross sales, discounts, shipping charged to customers, sales tax collected, and order counts. Compare those totals with your bookkeeping system, using the same date range and accounting method. Keep reports by channel so you can spot a change in one store rather than relying on a combined total.
Match each payout to the deposit in your bank account. A processor usually subtracts fees, refunds, or other adjustments before sending money, so the deposit will not necessarily equal gross sales. Record the payout details and investigate differences that remain after accounting for these deductions. Also check for payouts in transit at month-end so you do not mistake timing differences for missing income.
Review Fees and Refunds
Collect statements for marketplace commissions, payment processing, fulfillment, advertising, and subscription charges. Categorize each fee consistently and compare the statements with amounts entered in your books. Review changes in fee rates or newly added services, and flag charges you cannot identify. Separate transaction-related fees from operating costs when your bookkeeping setup supports that distinction.
Compare refund and return reports with processor activity and bank deposits. Confirm that refunds are recorded against sales, and check whether refunded orders also generated return shipping, restocking, or payment fees. Track refunds by order date and refund date when possible; those dates may fall in different months. This makes it easier to explain why sales reports and cash activity do not line up exactly.
Check Inventory and Costs
Record inventory purchases from supplier invoices, receipts, and payment records. Include the date, supplier, items, quantities, and related shipping or import charges. Keep these documents together and note whether goods were received, in transit, or still on order at month-end. A clear record helps distinguish inventory bought for resale from supplies or other business expenses.
Compare your inventory records with available stock counts and sales activity. Investigate negative quantities, large differences, and items that have not moved as expected. Follow the same inventory costing method from month to month, and ask a qualified tax professional if you are unsure how to treat damaged goods, samples, or unsold stock. Do not assume every inventory purchase belongs in the same expense category as a routine operating bill.
Review Expenses and Cash Flow
Check business bank and card statements against recorded expenses. Look for uncategorized transactions, duplicate entries, missing receipts, and personal purchases that need to be separated from business activity. Review recurring software, storage, shipping, advertising, and contractor costs for changes. Save invoices and receipts with enough detail to explain the business purpose and amount later.
Finish with a short cash-flow review. Compare current bank balances with upcoming supplier payments, payroll or contractor obligations, tax payments, refunds, and other scheduled bills. Note expected marketplace payouts and their timing, rather than treating sales totals as cash on hand. A simple monthly summary of opening cash, money received, money paid, and closing cash can reveal when you may need to adjust purchasing or spending.
Set a recurring time each month to gather reports, reconcile deposits, and resolve unusual differences while the records are easy to access. Keep source documents organized by month and sales channel, and write down questions that need follow-up. If you want support building a consistent review process, Crescent Ledger can help you assess your ecommerce bookkeeping workflow.