Can you believe it’s almost the end of yet another year and yes, time to think about those dreaded taxes. There are a few reports and numbers that you will definitely need to run and save for tax filing. And that, my friends, is your ending inventory for Amazon FBA and any on-site inventory you may have. Keep in mind, your ending inventory also becomes your beginning inventory, generally speaking.
On Amazon, there are a couple of ways to run these reports.
- No later than early AM January 1st, Amazon – Reports – Fulfillment – Inventory (left-side) – AZ Fulfilled Inventory. Click Download. This is a very close to real time report.
- You can download this one anytime after 12/31/14 as the data is 24 hours old. Amazon – Reports – Fulfillment – Inventory (left-side) – Daily Inventory History. Click Download Tab – Choose Exact Dates – 12/31/2014 (enter for From and To)
Both reports are downloaded in Notepad. Click Open – Select All – Copy and then paste into a spreadsheet.
Keyboard shortcuts would be:
- Select All: Ctrl A for PC or Command A for Mac
- Copy: Ctrl C for PC or Command C for Mac
- Copy: Ctrl V for PC or Command V for Mac
Personally, I like #2 because it also gives me the product name, only the items with inventory, and which warehouse it is located.
Now, save the document to a folder you can easily locate and give it a name like 2014 Year-End Inventory. I have a folder titled 2014 Sales & Expenses where I put everything related to this year I would need for tax purposes. You also want to open this and do a “save as” and create one for 2015 Beginning Inventory and put into a 2015 folder.
If you keep inventory on hand for merchant filled sales or eBay then you’ll need to do a physical inventory if you do not keep track of these items in a spreadsheet or some other fashion.
When you do your taxes, the Schedule C in Part III asks for the beginning inventory, purchases made to add to inventory during the year and the ending inventory. This means for those items remaining in FBA inventory and/or on-hand there needs to be a cost for those that you would add to the spreadsheet you download. If you already maintain a spreadsheet with inventory then you should be good to go and just need to scan it and make sure quantity numbers are the same.
Next blog post, I’ll give you the skinny on some other reports your CPA or tax professional or you the DIY’er will need before April 15th.