How to Build Ecommerce Accounting Software That Works with Shopify, Amazon & More
Managing finances for an ecommerce business can quickly become complex — especially when sales flow in from multiple platforms like Amazon, and WooCommerce. Manual data entry, tax compliance, and tracking transactions across various systems can lead to errors and inefficiencies.
That’s why many online sellers are turning to accounting software that integrates directly with their sales channels. By syncing orders, inventory, and payments in real time, these tools help automate financial tasks and provide a clear view of business performance.
In this guide, we’ll explore how to build powerful accounting software that connects seamlessly with ecommerce platforms.
Core Features of the Best E-commerce Accounting Software
To support modern online sellers, the best accounting software must go beyond basic bookkeeping. It should automate key financial tasks, sync with ecommerce platforms and provide real-time insights to help businesses grow efficiently.
Here’s a breakdown of the essential features every integrated accounting app should offer:
Feature | Description |
---|---|
Real-time Transaction Tracking | Automatically capture sales, refunds, fees from multiple channels. |
Multi-Currency Support | Handle international transactions and convert currencies accurately. |
Tax Automation | Calculate and apply sales tax, VAT, or GST based on region and product type. |
Inventory Syncing | Link inventory data to sales for accurate cost tracking and stock management. |
Revenue Reporting | Generate clear reports by product, channel, or region to track performance. |
Payment Gateway Integration | Sync with Stripe, PayPal, and others to match income with transactions. |
Order Reconciliation | Match sales orders with bank deposits and shipping records for accuracy. |
Platform Integration | Seamlessly connect with ecommerce platforms. |
User Permissions | Assign roles for accountants, store owners, or team members with access control. |
Mobile Access | Enable business owners to view key metrics and reports on the go. |
Step-by-Step Guide for Creating an E-Commerce Accounting Software
Step 1: Understand the Needs of E-Commerce Sellers
Start by researching the core financial pain points that online sellers face. These usually include order tracking, sales tax calculation, inventory cost management, and reconciling deposits from payment gateways like Stripe or PayPal. For example, a seller might sell 200 orders per day across multiple states, each with different tax rates. Without automated tax calculations and real-time reporting, it becomes nearly impossible to close the books accurately at month-end.
Interview merchants, accountants, and bookkeepers who specialize. Learn how they currently manage finances using tools like QuickBooks Online or Xero, and where those tools fall short without native site integrations. This customer discovery process will guide your app’s roadmap.
Step 2: Define the Core Feature Set for MVP
Once the needs are clear, define the minimum viable product (MVP) features that solve the most urgent problems. For a functional launch, focus on syncing orders, payments, taxes, and inventory from Amazon. Ensure you include real-time data syncing, error detection (such as duplicate orders or mismatched SKU names), and basic financial reporting.
You don’t need to build a full general ledger system from scratch — integrating with established accounting systems like QuickBooks Online or Xero can reduce development time and increase user trust. For example, by using the QuickBooks Online API, you can push categorized transactions and invoice data directly into a seller’s books, making reconciliation easy.
Step 3: Build Reliable API Integrations with E Commerce Platforms
Begin with Shopify and Amazon. Since they dominate the market. As of 2024, it supports over 4.5 million active stores, and one major platform represents nearly 40% of all U.S. ecommerce sales. Use the Admin REST API or GraphQL Admin API to fetch orders, transactions, and product inventory in real time. Pay close attention to pagination and rate limits — Shopify allows only 2 requests per second for public apps and may throttle or block you otherwise.
Integration with the other major platform is more complex. Use its Selling Partner API (SP-API), which requires an extensive approval process and secure authorization setup. Once connected, your app can pull settlement reports, order data, and even fee breakdowns across multiple marketplaces. Make sure to normalize this data—its naming conventions, tax formats, and currency treatments differ from other platforms.
Step 4: Normalize and Structure the Data
Data from different platforms will be inconsistent. For example, platforms might label a refund as a “refund transaction,” while Amazon could bundle refunds into a net payout line item. You’ll need a backend data model that standardizes transaction types across sources. Build a robust mapping layer that categorizes transactions (sale, refund, fee, tax) and ties them to specific SKUs, order IDs, and payment IDs.
You’ll also want to ensure that your tax fields align with what tools like Xero or QuickBooks Online expect. For example, QuickBooks uses specific tax codes per region; if your app misclassifies a sale, the resulting financial reports will be inaccurate. Create a testing environment using sandbox accounts from these platforms to catch edge cases before pushing updates to production.
Step 5: Implement Secure Authentication and User Onboarding
Security and ease-of-use are critical. Use OAuth 2.0 to authenticate connections to platforms. For one of the major platforms, this involves creating a public app in the Partner Dashboard and setting up redirect URLs to handle token exchange. The other platform requires a more detailed application and security audit for SP-API access, including encryption standards, data protection policies, and signed requests.
During onboarding, guide users step-by-step: connect their store, link their accounting software (e.g., Xero or QuickBooks), map accounts and SKUs, and begin syncing data. Offer default settings that work for most users but allow for customization by advanced users. For example, let users choose whether Shopify shipping income should post to “Sales Revenue” or a separate “Shipping Income” ledger.
Step 6: Build a Scalable Backend and Real-Time Dashboard
Use modern backend frameworks like Node.js or Django for handling API requests and syncing operations. Consider event-driven architecture (e.g., with AWS Lambda or Google Cloud Functions) to process transactions as they occur. For the front end, React or Vue.js are ideal for building real-time dashboards that display sales, expenses, and profit margins.
Create summary views that help users answer common questions: What did I earn today? How much did I spend on shipping and fees? Which product has the highest margin? These insights drive business decisions and improve retention.
Step 7: Ensure Data Accuracy, Reconciliation & Support
Accuracy is non-negotiable. Build reconciliation tools that compare expected cashouts (based on order data) with actual deposits from Stripe, PayPal, or Amazon. Show users any mismatches and suggest corrections. For example, if Shopify says you earned $10,000 this week but the Stripe deposit was $9,750, the system should explain that $250 was held for chargebacks or fees.
Build-in support tools such as activity logs, error alerts, and downloadable audit reports. Offer responsive customer support, especially during onboarding and tax season.
Conclusion
Building ecommerce accounting software can dramatically streamline your financials, reduce manual work, and give small businesses the tools they need to grow. Whether you’re tackling complex tax rules or syncing inventory and payments in real time, the right solution acts as a vital cog in your business operations.
At Attract Group, we specialize in creating custom software that fits your exact business needs. From scalable backends to intuitive dashboards, we help you build solutions that save time and improve accuracy. Ready to simplify your financials? Start with a free trial and see how we can help you streamline your operations today.
FAQs
What’s the difference between cash and accrual accounting for ecommerce businesses?
Cash accounting records sales and expenses when money actually moves in or out. Accrual accounting, on the other hand, tracks income and expenses when they’re earned or incurred, even if no cash has moved yet. For accurate ecommerce accounting — especially with returns, sales tax, and delayed payouts.
How can automation software help reduce accounting tasks for online businesses?
Automation software handles time-consuming tasks like sales order tracking, inventory updates, and sales tax reports — without manual input. It helps ecommerce accountants and business owners stay compliant, reduce errors, and get faster access to reports.
Do I need accounting software if I only sell on one platform like Shopify?
Yes. Even if you use only one sales channel, accurate tracking of inventory levels, sales data, and business finances is crucial. The best ecommerce accounting software helps small and medium-sized businesses stay organized, especially during tax season. A software solution ensures your business grows on a strong financial foundation.
What are some best practices for ecommerce bookkeeping I should know?
Some of the best practices for ecommerce bookkeeping include keeping your personal and business finances separate, using cloud-based accounting tools for real-time tracking, and reconciling your sales platforms regularly to catch any discrepancies early. It’s also important to accurately track your cost of goods sold through proper inventory management and ensure your systems integrate with Xero and QuickBooks Online. These habits not only simplify your accounting work but also help you make smarter business decisions over time.
What are the 5 best features to look for in accounting software for ecommerce?
When choosing the best accounting software for ecommerce, look for features that truly support your online business. A strong solution should allow you to track inventory levels across all your platforms, automate sales tax calculations, and go smoothly with marketplaces. It should also generate detailed reports based on your ecommerce sales and use accounting to minimize manual tasks.