E-commerce bookkeeping + tax package

Economic nexus and marketplace facilitator laws are effectively universal across states with sales tax; thresholds and rules vary by state and have continued to change through 2024–2026 (many states standardized on $100k sales thresholds and/or removed transaction-count thresholds). Use Sales Tax Institute and Avalara state guides for authoritative, per-state thresholds and details. Marketplace facilitators (Amazon, Etsy, etc.) typically collect/remit sales tax in states that enacted marketplace facilitator laws, but sellers still must track sales, register in certain states, and handle returns/1099s and other reporting obligations where applicable. Bookkeeping best practices for ecommerce: integrate sales channels with accounting software, maintain a clear chart of accounts separating sales, refunds, shipping, merchant fees, advertising, COGS, and fulfillment fees; reconcile payment processors and bank accounts monthly; track inventory and choose/consistently apply an inventory valuation method (FIFO/LIFO/Avg); record sales tax collected in separate liability accounts and remit on schedule. Recommended components of an “E-commerce bookkeeping + tax package” for US LLCs and small businesses: bookkeeping setup & monthly bookkeeping (reconciliations, P&L and balance sheet), sales tax nexus review and registration support, monthly/quarterly sales tax filings (or automated filing), quarterly estimated tax planning and payroll setup (if applicable), 1099 preparation and filing, year-end tax-ready cleanup and coordination with a CPA for income tax returns, and ongoing nexus monitoring. Tools & automation: QuickBooks or Xero for core bookkeeping; tax automation/services like TaxJar and Avalara for nexus monitoring, rate calculation, and (optionally) return filing; ecommerce/marketplace connectors (Shopify, Amazon, Etsy integrations) to sync transactions and inventory; inventory management tools for accurate COGS tracking. Practical compliance guidance: run quarterly nexus reviews (sales by state), register promptly once thresholds are exceeded, check whether marketplaces are collecting tax for you (and whether marketplace sales count toward nexus), file required zero returns when necessary, and maintain backup documentation for refunds/returns and marketplace-collected transactions to reduce audit exposure. 1099-K and IRS reporting: payment-processor reporting continues to be an enforcement vector; reconcile 1099-Ks to your books and be prepared to explain discrepancies (refunds, chargebacks, marketplace-collected sales that are not your gross). Monitor IRS and processor thresholds and guidance.