If you’re selling on Amazon and still tracking everything in a spreadsheet, we need to talk. I get it. When you’re starting out, Excel feels like the obvious choice. It’s free, you know how to use it, and it seems fine for a few transactions. But once you’re doing any real volume, a spreadsheet will cost you more in missed deductions and messy books than a proper accounting tool ever would.
Here’s the honest comparison, updated for what’s actually available in 2026.
Last updated: April 2026
The Spreadsheet Problem
Excel (or Google Sheets) works fine if you have a handful of transactions per month and you’re a sole proprietor who doesn’t need financial statements. For everyone else, it’s a ticking time bomb.
Here’s what goes wrong:
- No audit trail. Anyone can change a number and there’s no record of what was edited or when.
- Formula errors. One broken reference and your whole P&L is wrong. You won’t know until tax time.
- No bank reconciliation. You’re comparing printouts manually. This is where things fall through the cracks.
- No balance sheet. If you’re incorporated, you need one. Period. A spreadsheet won’t generate it.
- CRA doesn’t love it. If you’re audited, CRA wants organized books with an audit trail. A spreadsheet with 47 tabs isn’t that.
The only scenario where a spreadsheet still makes sense: you’re a brand new sole proprietor with under $30,000 in revenue and a dozen transactions per month. Even then, you’re building a habit you’ll have to break later.
What Amazon Sellers Should Actually Use
QuickBooks Online
This is what most of our Amazon seller clients end up on, and for good reason:
- Connects directly to your bank accounts for automatic transaction importing
- Integrates with A2X (which pulls Amazon settlement reports and breaks them into proper journal entries)
- Generates balance sheets, income statements, and GST/HST reports
- Your accountant can log in directly at year-end, which saves you money on bookkeeping fees
- Canadian edition handles GST/HST properly
Cost: Starting around $25/month (CAD). The Simple Start plan works for most single-marketplace sellers. If you’re on Amazon.com and Amazon.ca, you’ll want the Essentials plan for multi-currency.
Xero
Popular with e-commerce sellers who operate internationally. Handles multi-currency natively and also integrates with A2X.
- Cleaner interface than QuickBooks for some users
- Great multi-currency support (useful for USD sales on Amazon.com)
- Integrates with most e-commerce apps
- Strong in the Shopify ecosystem
Cost: Starting around $20/month (CAD). The Growing plan is what most sellers need.
Wave
Free accounting software that’s actually decent for the basics. Canadian company, handles GST/HST.
- Good for sole proprietors and very small operations
- No integrations with Amazon settlement tools (you’d have to enter things manually)
- Limited reporting compared to QuickBooks or Xero
- Free tier covers accounting and invoicing
Cost: Free for core accounting. They make money on payroll and payment processing.
The A2X Factor (Why This Matters for Amazon Sellers)
Whatever accounting software you choose, the real game-changer for Amazon sellers is A2X. It takes your Amazon settlement reports and converts them into clean journal entries that separate:
- Product sales revenue
- Amazon referral fees
- FBA fees
- Storage fees
- Advertising costs
- Refunds and returns
- GST/HST collected
Without A2X (or something similar like Link My Books), you’re either entering all of this manually or lumping the Amazon deposit as one big number and losing all the detail. When tax time comes, that detail matters for claiming expenses and calculating your actual margins.
A2X cost: Starting at $25 USD/month for sellers with up to 200 orders/month.
My Recommendation
For most Canadian Amazon sellers:
| Situation | Best Option |
| Just starting out, sole proprietor, low volume | Wave (free) or QuickBooks Simple Start |
| Selling on Amazon.ca only, incorporated | QuickBooks Online + A2X |
| Selling on Amazon.ca AND Amazon.com | QuickBooks Essentials + A2X (multi-currency) |
| Multi-platform (Amazon + Shopify + Etsy) | Xero + A2X or Link My Books |
| High volume, multiple employees | QuickBooks Plus + A2X + payroll add-on |
What About Desktop Software?
QuickBooks Desktop is being phased out. Intuit is pushing everyone to QuickBooks Online. If you’re still on Desktop, it still works, but new features and support are drying up. If you’re choosing today, go with the online version.
Sage 50 (formerly Simply Accounting) is another option that some accountants prefer. It’s more powerful but less user-friendly and doesn’t have the same ecosystem of e-commerce integrations.
Frequently Asked Questions
Do I need accounting software for my Amazon business?
If you’re incorporated, yes. You need proper books with a balance sheet, and a spreadsheet can’t produce one reliably. Even as a sole proprietor, once you’re past a few dozen transactions per month, software pays for itself in time saved and errors avoided.
Can my accountant just do my books from my Amazon reports?
Technically, but it’ll cost you more in accounting fees than a year of QuickBooks. Your accountant has to manually categorize hundreds of transactions. If you keep organized books during the year, your year-end fees drop significantly.
Is the spreadsheet template still available?
We used to offer an Excel accounting template for new sellers. It’s still functional for sole proprietors just getting started, but honestly, Wave is free and does everything the spreadsheet does, plus bank feeds, proper reporting, and an audit trail. We recommend starting there.
Related Articles
- Amazon Seller Weekly Planner: The System That Saves You Money at Tax Time
- What is a Good Software to Track Your Amazon Profit and Loss?
- How To Calculate Your Year End Inventory for Amazon Sellers
Need Help Setting Up Your Books?
If you’re not sure which software to use or how to set up your chart of accounts for Amazon selling, reach out. We set up QuickBooks and A2X for Amazon sellers regularly and can get you organized properly from day one.