Amazon FBA Accounting in Texas: Everything You Need to Know in 2025

You’ve finally got your Amazon FBA business running smoothly in Texas… until tax season hits.

Inventories are flying off the shelves. Reviews are glowing. Sales are climbing. But then comes a dreaded email from the Texas Comptroller, or worse, a letter notifying you of a sales tax audit.

📌 Did You Know? Texas penalizes late sales tax filings with up to $1,000 in fines, interest, and administrative fees.

One small slip-up, and your thriving FBA business could be bleeding thousands.

But don’t panic. Today’s guide breaks down everything you need to know about Amazon FBA accounting in Texas, from state-specific tax rules to smart bookkeeping routines, and how to make it stress-free with doola Bookkeeping.

Understanding Amazon FBA and Its Impact on Your Finances

Amazon FBA (Fulfillment by Amazon) means you ship your inventory to Amazon’s warehouses, and they handle storage, fulfillment, shipping, and returns for you.

Sounds great, right? It is, until you dive into the financial side.

What Surprises Most New Sellers About FBA Finances?

Amazon charges a lot of fees: referral fees, FBA fulfillment fees, storage fees, long-term storage penalties, and more. Add to that:

• Inventory stored in multiple states (including Texas) = multi-state tax obligations

• Refunds and returns = messy accounting

• Reimbursement delays = cash flow headaches

• Amazon settlements = bundled, hard-to-read payout reports

In short: Amazon FBA simplifies logistics but complicates your books. And for Texas sellers, it adds another twist: sales tax nexus.

Do Texas-Based Amazon Sellers Have Special Tax Responsibilities?

Absolutely. Whether your e-commerce business is physically based in Texas, or Amazon simply stores your inventory in a Texas fulfillment center, you’re likely subject to economic nexus rules. 

And yes, that triggers sales tax obligations under Texas law.

If your inventory sits in a Texas warehouse, are you on the hook?

Short answer: Yes.

Thanks to Amazon’s dynamic inventory distribution, your products may be stored in a Texas warehouse, even if your business is registered in another state or country. 

That alone creates economic nexus, which means you’re now legally responsible for collecting and remitting Texas sales tax.

Here’s what that means for you:

1. You must register for a Texas Sales Tax Permit

Before collecting a single cent in Texas sales tax, you’re legally required to register with the Texas Comptroller’s office. 

If you’re selling without it, that could open the door to penalties or audits.

2. You’re responsible for collecting and remitting state + local tax

Texas has a 6.25% state tax plus local rates that can go up to 2%. 

That means in some areas, your customers may pay up to 8.25% total, and you’re expected to get that calculation right.

3. You may owe back taxes if you’ve been selling without a permit

If your FBA inventory has been warehoused in Texas for months (or even years) and you haven’t collected tax, you may have accrued unpaid sales tax, interest, and potential fines.

Example: Selling $10,000/month in Texas? At 8.25% sales tax, that’s $825/month you should’ve been collecting. Over a year, that’s $9,900 in potential unpaid taxes.

At doola, we’re here to make sure you never get blindsided by tax trouble. We make it easy to stay on track and dodge the tax errors that could cost you big. 

Curious what to watch out for? Let’s find out.

What Common Mistakes do FBA Sellers Make?

Many Fulfillment by Amazon (FBA) sellers assume Amazon handles all things tax. Unfortunately, that’s only partially true. Under Marketplace Facilitator laws, Amazon is only responsible for sales made on its platform, and only for products that qualify.

Here’s a breakdown of the most common missteps and how they can hurt your business:

Assuming Amazon Handles All Your Sales Tax

Business Impact: You may skip collecting tax on channels Amazon doesn’t cover.

Example: Say you also sell on Shopify. Amazon only handles Amazon sales, not your Shopify store. If you make $5,000/month through Shopify and don’t collect Texas tax, that’s $412/month in uncollected tax (at 8.25%). 

Or nearly $5,000/year in tax liability.

Not Accounting for Tax-Exempt Sales

Business Impact: Misreporting exempt sales could flag an audit or overpayment.

Example: If you sell to a nonprofit or a reseller with exemption documentation, but fail to track or report those correctly, the Texas Comptroller may assume you’re evading tax or misfiling returns.

Sale Type	Proper Handling	Risk of Error
Nonprofit	Collect exemption certificate	🚩 Over-collection or audit
Resale	Document and retain certificate	🚩 Misclassification risk

Ignoring Multi-Channel Sales

Business Impact: You may only collect tax on Amazon and miss your other platforms.

Example: If you’re selling on Amazon and Etsy, but only Amazon is collecting tax, your Etsy transactions still fall on you. 

Platform	Tax Collected by Marketplace?	Seller’s Responsibility
Amazon	✅ Yes	❌ Minimal
Shopify	❌ No	✅ High
Etsy	✅ Yes (in some states)	⚠️ Varies

That split, as shown above, could mean thousands in tax exposure if unreported.

Selling Out-of-Scope Products or Bundles

Business Impact: Not all products are taxed equally. Bundled goods might require special treatment.

Example: Selling a bundle of a non-taxable food item + a taxable mug? Texas might tax the entire bundle, unless you break it down properly. Failure to do so could result in overcharging customers or underreporting to the state.

Bundle Example	Taxable?
Protein bar + water	❌ No (food item)
Protein bar + tote bag	✅ Likely taxed
Mug + coffee sampler	✅ Likely taxed

In short, relying on Amazon to handle all your sales tax can lead to costly blind spots. FBA sellers must take charge of their compliance, especially in nexus-heavy states like Texas.

So, what’s the smarter way forward? Start by knowing your obligations and avoid falling into the same traps.

Sign up today to doola it!

Bookkeeping Best Practices for Amazon FBA Sellers

Bookkeeping isn’t just about balancing numbers; it’s your first defense against tax surprises, cash flow hiccups, and compliance nightmares.

Whether you’re just starting out or scaling across channels, clean books mean smarter decisions and stronger growth.

Let’s break it down by business stage, so you can build good habits early and scale them with confidence.

Beginner Sellers: 0–50 Sales/Month

If you’re just getting started on Amazon FBA, this is the perfect time to lay a solid financial foundation. Keeping things clean from day one saves you from expensive cleanup later.

Track All Amazon Payouts & Fees Weekly

Amazon doesn’t just deposit your revenue. They also deduct fees, storage costs, shipping charges, and more. So use your settlement reports to track:

• Amazon fees (referral, FBA, shipping)

Example: If you sold $2,000 worth of goods this month and received $1,460 after fees, make sure that $540 in fees is logged accurately.

Use Tools Like A2X or doola to Automate Transaction Imports

Manual data entry = mistakes. 

Tools like doola Bookkeeping integrate with Amazon to automatically import and categorize transactions, saving hours each week and ensuring nothing falls through the cracks.

Categorize Cost of Goods Sold (COGS) Properly

COGS includes your inventory purchase costs, freight, customs, and packaging. Here’s a quick example:

Month	Units Sold	COGS per Unit	Total COGS
January	100	$6.50	$650
February	150	$6.50	$975

Now remember, misclassifying these can inflate your profits (and tax bill).

Log Startup Expenses Separately for Deductions

Startup costs like Amazon subscriptions, legal fees, branding, and setup tools can often be amortized or deducted. Keep them tracked in a separate category.

⚡ doola Insight: Startup costs up to $5,000 can often be deducted in your first year under IRS guidelines.

Early-stage sellers who build solid bookkeeping habits with tools like doola not only avoid messy cleanup later, they also position themselves for faster funding, cleaner taxes, and easier scaling.

🔖 Related Read: Expense Tracking for Small Businesses: Avoiding IRS Audits in 2025

Growth Stage Sellers: 50–500 Sales/Month

With more sales comes more complexity, and good bookkeeping ensures you’re not bleeding money unnoticed. So, once you’ve moved beyond the basics, it’s time to tighten your financial systems. 

Reconcile Amazon Settlements Weekly, Not Monthly

With rising volume, reconciling monthly can cause errors to pile up. Weekly reconciliation helps catch discrepancies faster and keeps your statements aligned with real cash flow.

⚡ doola Tip: Match your payout schedule with your reconciliation cadence for smoother tracking.

Separate Shipping Income from Product Sales

Amazon may collect shipping fees from customers and pass them to you, but that’s not revenue from products. Separate it on your P&L for clarity and better tax handling.

Example: If you collect $10,000 in sales and $1,000 in shipping, you only owe sales tax on the product portion in many states. Mixing the two can lead to overpayment.

Track Returns and Reimbursements Carefully

Amazon processes returns and reimbursements automatically, but if you don’t log them properly, your profit margins may look inflated. 

A perfect example is presented in the table below:

Month	Gross Sales	Returns	Refunds	Net Sales
March	$12,000	$600	$600	$11,400

📌 Note: Returned items may still be in sellable condition, or damaged. Keep track of inventory impact to avoid complications later.

Review Ad Spend vs. ROI Monthly

If you’re running Amazon PPC, know which products are performing and which are draining budget. Use cost-per-click data + sales attribution to determine ROI.

Example: You spent $1,200 on ads and generated $4,000 in attributed revenue. That’s a 3.33x ROAS, but check if your profit margins actually support it.

At this stage, better bookkeeping means better decision-making. If you want to scale efficiently, let your books show you where to double down and where to cut back.

Scaling Sellers: 500+ Sales/Month

You’re not just running a store now, you’re running a full-fledged e-commerce operation. At this scale, data visibility, financial forecasting, and inventory accuracy become mission-critical.

Monitor Inventory Valuation Across Warehouses

Amazon may store your inventory in multiple locations. Track inventory quantities, aging stock, and valuation by location to avoid shrinkage and unexpected losses.

Pro Tip: Use tools that support real-time inventory sync across FBA, FBM, and other fulfillment channels.

Automate Reporting for Multi-Channel Revenue Streams

If you’re selling on Shopify, Amazon, and Walmart, your books should reflect each channel’s performance separately.

Channel	Monthly Sales	Fees	Net Revenue
Amazon	$40,000	$8,500	$31,500
Shopify	$15,000	$1,500	$13,500
Walmart	$7,000	$1,050	$5,950

📌 Note: Even a single underperforming channel can erode your margins, so keep tabs across the board.

Build Tax-Ready Financial Reports Quarterly

Don’t wait until April to scramble. Generating quarterly profit & loss statements, balance sheets, and cash flow reports keeps you ready for tax time, and investor-ready too.

Track Cash Flow & Profitability per SKU/Product Line

Not all bestsellers are profit-makers. Some SKUs may drive volume but eat up your margins. Here’s a quick example for you:

SKU	Units Sold	COGS	Ad Spend	Net Profit
A123	800	$6,400	$1,200	$4,000
B456	400	$2,800	$1,600	-$400

📌 Pro Tip: Retire unprofitable SKUs faster and reinvest in winners.

At this scale, bookkeeping isn’t optional, it’s your business intelligence system. And clean books will result in cleaner strategy, stronger growth, and tax season that doesn’t stress you out.

⚡ doola Tip for Do’ers

Weekly reconciliation may sound tedious, but it’s your secret weapon against tax-time chaos. Whether you’re just starting or selling thousands of units a month, clean books = clean wins.

Need a hand staying on top of it all? doola Bookkeeping has your back: with automation, expert support, and reporting built for founders like you. 

Texas Business Tax Compliance Calendar 2025

How Sales Tax Works for FBA Sellers in Texas

You may owe different rates based on where the customer is and where inventory is stored.

Texas sales tax = state rate (6.25%) + local rates (up to 2%). 

Example: How Nexus Works

Let’s say you sell a $100 product to a customer in Dallas, where the total sales tax rate is 8.25%. If the transaction happens through Amazon, they’ll typically collect the $8.25 sales tax on your behalf under Marketplace Facilitator laws. 

However, if you sell that same item via your Shopify store, collecting and remitting that $8.25 becomes your responsibility, not Amazon’s. That’s where many sellers trip up.

🚨 Real-Life Consequence: What Happens When You Ignore Nexus?

Let’s break this down with an example of an Amazon FBA seller who chose to overlook sales tax nexus in Texas, despite having inventory stored in a local fulfillment center. 

Fast forward two years, and the consequences hit hard: they were slapped with a $4,600 bill covering unpaid sales taxes, late payment penalties, interest, and additional CPA fees just to clean up the mess.

That’s not just a financial setback, it’s a stress spiral no founder wants to face.

📌 Takeaway: Ignoring nexus doesn’t make it go away, it just makes the problem more expensive. So, how can you stay ahead of it? Let’s explore that next.

Accounting Software vs. Professional Help: What’s Best?

Managing Amazon FBA finances today is almost like shopping online. You’ve got endless options, but only a few that actually fit. 

So instead of asking, “What’s cheapest?” ask yourself: “Which tool keeps me tax-ready and stress-free at scale?” 

Let’s compare what’s out there.

Tool	Pros	Cons
Spreadsheets	✅ Free and DIY-friendly.	❌ Error-prone and time-consuming as volume grows. No automation.
QuickBooks/Xero	✅ Excellent for tracking expenses and revenue.	❌ Requires manual categorization and setup. Not Amazon-specific.
A2X+QuickBooks	✅ Seamless Amazon-native integration; great for transaction syncing.	❌ Doesn’t help with tax filing or offer expert support, limited to bookkeeping only.
doola Bookkeeping	✅ End-to-end FBA-ready service with expert support, automation, and compliance checks.	Slightly higher upfront investment, but saves hours of time and thousands in potential penalties.

DIY tools can be a great starting point, but they often fall short when it’s time to scale or stay compliant. As your business grows, so does the complexity, and that’s when peace of mind matters more than patchwork solutions.

Let’s look at this through a sharper lens: cost vs. confidence and how it pans out for businesses.

Cost vs. Confidence: What’s the Trade-Off?

Choosing a bookkeeping solution isn’t just about dollars, it’s about how confidently you can run your business without second-guessing your numbers. Here’s what different approaches look like when you stack them up:

Approach	Monthly Cost	Confidence Level
Spreadsheets	$0	❌ Low. Risk of costly errors, missing data, and no tax readiness.
Software only	$30-80	⚠️ Medium. Good tools, but still requires manual effort, tax know-how, and bookkeeping skills.
doola Bookkeeping	$297	✅ High. Done-for-you accuracy, expert oversight, full compliance with Amazon FBA complexity in mind.

When tax deadlines loom, your time becomes your most valuable resource. So here’s the question: 

Do you want to spend it untangling numbers, or making smart business moves? 

The right strategy starts with strong bookkeeping. And for FBA sellers, it’s a must. Let’s break down why.

Why Bookkeeping Is Non-Negotiable for FBA Businesses

Can you scale a 6-figure FBA business on messy books? Not a chance. And definitely not without hitting serious roadblocks along the way.

Because here’s what poor bookkeeping implies:

🚫 Inaccurate Tax Filings: A Costly Shortcut to IRS Scrutiny

When your numbers don’t match reality, you risk missing out on deductions, misreporting income, and triggering audits. During tax season, disorganized records can lead to overpayments, underpayments, or worse, penalties that snowball over time.

🚫 No Access to Funding: Why Investors Walk Away

Whether you’re applying for a business loan or pitching to investors, sloppy or incomplete books signal high risk, and no one writes checks for uncertainty.

Your financials tell your story.

Only clean, accurate books build trust and unlock capital.

🚫 Inability to Scale: Growth Without Visibiity 

As your sales climb, so does the complexity: more SKUs, more returns, more platforms.

So without clean books, you can’t optimize inventory, forecast cash flow, or understand profit margins. And it becomes impossible to make smart, timely decisions for your business.

🚫 IRS and State Audits: Expensive & Preventable

Disorganized records invite scrutiny. If the IRS knocks and you can’t produce accurate documentation, you’re not just paying back taxes. You’re paying with time, stress, and potentially legal consequences. 

Clean books keep your defense ready, always.

🚫 Stress & Penalties: The Hidden Cost of Disorganization

Tax season should be a routine checkpoint, not a fire drill. Without structured bookkeeping, you’re constantly scrambling. This leads to late filings, rushed decisions, and unnecessary penalties. 

Worst of all? It drains your energy away from what actually grows the business.

We’ve seen many FBA sellers getting stuck, not because they don’t have product-market fit, but because their financials can’t keep up with their growth.

Don’t let that be you, especially when a full-service partner like doola Bookkeeping is built to take this burden off your plate.

Streamline Your FBA Accounting With doola Bookkeeping

You didn’t start your Amazon FBA business to become a full-time bookkeeper, right? That’s why we built doola Bookkeeping: to eliminate the spreadsheets, end the tax chaos, and help you focus on sales, not software.

Here’s exactly what we take care of, so you don’t have to:

1. Texas Sales Tax Registration and Filing

We’ll register your business for a Texas sales tax permit and handle your state filings, ensuring you’re 100% compliant with economic nexus laws, even if you’re based out-of-state or overseas.

2. Reconciling Amazon Settlements and Payouts

We match every dollar Amazon sends with what you actually earned, down to the fee breakdowns and timing differences. No guesswork, no mismatches.

3. Categorizing Every Fee, Refund, and Charge

From FBA storage fees to shipping chargebacks and reimbursements, we ensure every line item is tagged and tracked accurately, so your books are tax-ready and audit-proof.

4. Tracking COGS, Ad Spend, and Inventory

Your profit margin is more than just sales minus expenses. We monitor Cost of Goods Sold, ad ROI, and real-time inventory movement to give you true financial clarity.

5. Catch Up Bookkeeping (If You’ve Fallen Behind)

Behind a few months, or a full year? We specialize in catch-up bookkeeping to help you get current, avoid penalties, and file taxes on time with clean, complete records.

6. Multi-Channel Accounting (Shopify, Walmart, TikTok Shop & More)

Selling on more than just Amazon? We integrate and reconcile across multiple platforms, ensuring your revenue, returns, and fees are recorded accurately, no matter where your customers check out.

See exactly how doola Bookkeeping outperforms the DIY route, feature by feature.

Feature	DIY	doola
Categorize Amazon transactions	❌	✅
Sales tax compliance in Texas	❌	✅
Weekly reconciliation	❌	✅
Integration with Amazon	❌	✅
Expert support	❌	✅

Imagine never touching a spreadsheet again. Yes, that’s doola for do’ers like you!

Let doola Handle Your Texas FBA Finances

Selling on Amazon comes with enough challenges, managing your FBA finances doesn’t have to be one of them.

Let doola do the heavy lifting for you.

doola Bookkeeping offers expert-led, FBA-focused accounting support that keeps your books clean, compliant, and growth-ready.

Here’s why Amazon sellers recommend our services:

✔️ Specialized for Amazon FBA and Texas sales tax

✔️ Trusted by over 10,000 founders from 175+ countries

So, why DIY your way into penalties when doola’s expert help is one click away? If you need help navigating Amazon FBA accounting in Texas, our team is here to help.

Don’t wait for tax season panic. Let doola keep your books (and business) audit-ready, always.

Sign up to get started today!

FAQs

Do I need to collect Texas sales tax if I’m not based in Texas?

Yes. If Amazon stores your inventory in a Texas warehouse, you have nexus and must register to collect and remit sales tax.

What does Amazon report to the IRS?

Amazon reports gross sales (not net profits) via Form 1099-K if you meet the reporting thresholds.

How do I categorize Amazon fees in my books?

You should separate FBA fees, referral fees, and shipping charges. Tools like A2X or services like doola do this automatically.

Can doola file Texas sales tax on my behalf?

Yes. doola handles state sales tax registration, filing, and remittance for FBA sellers operating in Texas and beyond.

Does doola integrate with Amazon and QuickBooks?

Yes. We pull in your Amazon data, map it to your QuickBooks account, and keep everything reconciled.