When your business grows past what you can track yourself, the first bookkeeping help you should get is not expensive accounting software or a high-priced firm. You should first establish a dedicated business checking account to keep your finances separate, choose a straightforward method to capture income and expenses, and secure a structured bookkeeping service to maintain your books month to month.
What Bookkeeping Help Should You Get First?
When an online business expands, tracking sales, refunds, processor fees, and shipping costs in a standard spreadsheet quickly becomes unmanageable. The initial step is to separate your personal and business finances entirely. According to Internal Revenue Service (IRS) Publication 583, "Starting a Business and Keeping Records," opening a dedicated business checking account is one of the very first things you should do when starting a business. Using your business account exclusively for business transactions establishes a clean audit trail and serves as the foundation for all future recordkeeping.
Once your accounts are separate, you need a system to aggregate transactions, calculate net revenue, track deductible expenses, and prepare for state and federal tax obligations. For many online sellers, jump-starting this process with a combined entity setup and bookkeeping service like ZenBusiness is the most efficient option. If you need complete entity formation alongside financial tracking, exploring ZenBusiness accounting provides a path to set up your legal structure and financial foundations simultaneously.
Official Recordkeeping Requirements for Online Sellers
As your e-commerce operation expands, you must adhere to official recordkeeping standards set by tax and labor authorities. Keeping accurate books isn't just about knowing your profits; it is a legal requirement.
IRS Publication 583 outlines the specific supporting documents every business must retain:
- Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, and credit card charge slips.
- Purchases and inventory: Canceled checks, cash register tape receipts, credit card sales slips, and invoices.
- Expenses: Canceled checks, cash register tapes, account statements, credit card sales slips, and invoices.
- Assets: Purchase and sales invoices, real estate closing statements, and canceled checks.
Required Retention Periods
How long you must keep these records depends on the context and the government agency involved:
- General business records: Keep records for at least 3 years in the general case, per IRS guidance on record retention, unless one of the exceptions below applies.
- Income omission: Retain records for 6 years if you fail to report income that is more than 25% of the gross income shown on your tax return.
- Bad debt or worthless securities: Keep records for 7 years if you file a claim for a loss from worthless securities or a bad debt deduction.
- Fraudulent or unfiled returns: Keep records indefinitely if you do not file a return or if you file a fraudulent return.
- Employment tax records: Maintain all employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later, per IRS guidelines.
- FLSA payroll records: The U.S. Department of Labor (DOL) Fact Sheet 21 requires employers to preserve payroll records, sales and purchase records, and collective bargaining agreements for at least 3 years. Supporting records like time cards, work schedules, and wage rate tables must be kept for at least 2 years.
- State sales tax records: Requirements vary by state. For instance, the California Department of Tax and Fee Administration (CDTFA) Publication 116 states that sellers must retain sales and use tax records for at least 4 years, or longer if an audit is underway.
Evaluating ZenBusiness Money Pro
For online sellers looking for an integrated solution, ZenBusiness Money Pro offers a managed approach to basic bookkeeping. ZenBusiness is primarily known for corporate formation and registered agent services, but its Money Pro product provides an accessible entry point for small business accounting.
ZenBusiness Money Pro is priced at $30 per month, sold as an add-on alongside business formation services. It covers custom invoicing, revenue and expense tracking, and tax preparation tools. Unlike standalone desktop or cloud accounting applications, ZenBusiness Money Pro functions as a guided service bundled directly with your business entity management.
Key Features of ZenBusiness Money Pro
- Revenue and Expense Tracking: Records what comes into and goes out of the business.
- Custom Invoicing: Create and send custom invoices to customers.
- Tax Preparation Tools: Tools that help prepare for tax filing.
- Sold Alongside Formation: An add-on to ZenBusiness business formation, so the entity and the bookkeeping support come from one provider.
ZenBusiness Money Pro is designed for business owners who want one main provider to manage their state formation, registered agent compliance, and baseline financial tracking. However, it is not a complex inventory accounting platform. Multi-channel sellers with large amounts of inventory, complex cost-of-goods-sold (COGS) tracking, or foreign currency transactions may eventually need specialized tools.
It is worth noting that ZenBusiness formerly offered business bank accounts, but that service has been discontinued. Sellers must bring their own business checking account to pair with the Money Pro service.
Comparison of Bookkeeping Options for Online Sellers
When choosing your first bookkeeping solution, compare the available platforms based on your current business structure, sales volume, and technical requirements. Below is an alphabetical overview of top software and service options for online sellers.
| Provider | Core Focus | Best For |
|---|---|---|
| A2X | E-commerce Sales Reconciliation | Sellers needing precise sales channel reconciliation |
| Bench | Managed Online Bookkeeping Service | Hands-off monthly bookkeeping with a human bookkeeper |
| Link My Books | Automated E-commerce Accounting | Automated summary posting for Amazon, eBay, and Shopify |
| QuickBooks Online | Complete Double-Entry Accounting | Growing businesses requiring full inventory and financial reporting |
| Wave | Basic Financial Tracking | Early-stage sole proprietors needing low-cost tracking |
| Xero | Cloud Accounting Software | Scalable businesses seeking robust multi-currency and inventory integrations |
| ZenBusiness Money Pro | Integrated Entity & Financial Management | Business owners wanting legal formation paired with basic bookkeeping |
| Zoho Books | General Small Business Accounting | Budget-conscious businesses using the broader Zoho software ecosystem |
A2X
A2X is a specialized integration tool rather than a standalone general ledger. It bridges the gap between major e-commerce platforms (like Amazon, Shopify, Walmart, and eBay) and accounting software like QuickBooks Online or Xero. A2X automatically processes payout summaries, calculates sales tax collected, accounts for platform fees, and updates cost-of-goods-sold. As of 2026-10-06, A2X is priced from $29 per month per sales channel, with Walmart from $79 per month.
Bench
Bench is a professional, technology-enabled bookkeeping service that pairs you with a dedicated human bookkeeping team. Bench handles monthly financial statement generation and year-end tax package preparation. It uses proprietary software to deliver cash-basis or modified accrual statements. Bench offers tiered plans depending on whether you need monthly bookkeeping alone or specialized tax filing assistance; check Bench's pricing page for current figures.
Link My Books
Link My Books is an automated accounting integration tool designed for online merchants selling across platforms like Amazon, eBay, Etsy, and Shopify. Similar to A2X, it imports payout data, separates sales tax, processor fees, and refunds, and posts clean summary journals directly to Xero or QuickBooks Online. It does not publish a flat tier: pricing runs through a calculator based on order volume and channel count, so no figure can be quoted here.
QuickBooks Online
QuickBooks Online is the industry-standard double-entry cloud accounting platform. It offers extensive reporting, inventory management, bank feeds, third-party app integrations, and customizable charts of accounts. QuickBooks offers tiered monthly subscription tiers (Simple Start, Essentials, Plus, and Advanced); check QuickBooks' pricing page for current figures. Business owners looking for assisted setup can also add QuickBooks Experts (formerly QuickBooks Live) for hands-on guidance.
Wave
Wave provides basic accounting and invoicing software designed for small businesses, freelancers, and sole proprietors. Wave allows users to track income and expenses, link bank accounts, and generate basic financial statements like balance sheets and income statements. Wave's core accounting features carry no base subscription fee, while merchant processing fees and payroll features are charged separately; check Wave's pricing page for current figures.
Xero
Xero is a cloud-based double-entry accounting software platform widely used as an alternative to QuickBooks Online. It includes fixed asset management, bank feeds, expense tracking, and custom invoicing, alongside robust multi-currency features and strong e-commerce app integrations. Xero sells tiered monthly subscriptions (Early, Growing, and Established); check Xero's pricing page for current figures.
ZenBusiness Money Pro
ZenBusiness Money Pro provides a simplified financial management setup designed for new businesses. For $30 per month, it covers custom invoicing, revenue and expense tracking, and tax preparation tools, sold as an add-on alongside entity formation. It is a service rather than accounting software, so inventory-heavy merchants will likely need a ledger as well, but it offers a practical, low-friction starting point for early-stage sellers.
Zoho Books
Zoho Books is an online accounting system that forms part of the broader Zoho cloud software ecosystem. It includes automated workflows, bank reconciliation, inventory tracking, purchase order management, and customer portal features. Zoho Books offers a free tier for low-revenue businesses, alongside tiered paid monthly plans; check Zoho Books' pricing page for current figures.
How to Choose the Right Path for Your Business
Selecting the right bookkeeping path depends on where your online store sits in its growth trajectory.
Path 1: Launching and Early-Stage Setup
If you are currently forming your business entity, registering an LLC, or establishing your first accounts, streamlining your admin tasks is a priority. Forming through ZenBusiness and adding ZenBusiness Money Pro lets you establish your company structure, secure an EIN, and get bookkeeping support from one provider. Paired with a separate business bank account, this handles basic compliance and tax categorization needs without requiring complex accounting software setup.
Path 2: Single-Channel Sellers with Moderate Volume
If your store relies on a single sales platform like Shopify or Etsy and processing transactions via a single payment gateway, standalone software like Wave or a lower-tier plan from QuickBooks Online or Xero may be sufficient. These platforms directly import bank and processor feeds, allowing you to reconcile sales and track operational overhead cleanly.
Path 3: Multi-Channel, High-Volume E-Commerce
When you sell across multiple sales channels (e.g., Amazon, Walmart, and custom storefronts) while managing physical inventory across multiple fulfillment centers, cash-basis bank feeds will no longer reflect your true financial position. Platform payouts bundle gross sales, refunds, storage fees, advertising costs, and sales tax collected into single net deposits.
At this stage, the recommended setup involves pairing a core double-entry accounting system (such as QuickBooks Online or Xero) with an e-commerce connector tool (like A2X or Link My Books). These connectors split aggregate marketplace deposits into correct revenue, fee, and liability accounts before posting to your general ledger.
Summary Checklist for Online Sellers
- Separate Accounts: Immediately open a separate business checking account as advised by IRS Publication 583.
- Choose Your Starting Help: Select a combined service like ZenBusiness Money Pro if starting from scratch, or choose dedicated accounting software if handling high sales volumes.
- Establish a Document Storage Process: Maintain all receipts, invoices, deposit slips, and platform fee summaries.
- Mind the Timelines: Retain general records for 3 years, employment records for 4 years, and state sales tax documentation according to local state requirements (such as 4 years for CDTFA).
- Prepare for Scale: Add sales reconciliation tools (A2X, Link My Books) once marketplace payout summaries become difficult to reconcile manually.
Sources
- Internal Revenue Service, "Publication 583, Starting a Business and Keeping Records"
- Internal Revenue Service, "How Long Should I Keep Records?"
- U.S. Department of Labor, "Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)"
- California Department of Tax and Fee Administration, "Publication 116, Retaining Records"