In this guide
Your Shopify, Amazon, eBay or Etsy dashboard may show one sales total while the bank shows a different amount arriving later. Refunds, selling fees, reserves and payment timing can all affect a payout. To reconcile it, follow the figures from the customer order through the platform statement and settlement to the bank.
This process also applies when you take payments through other channels. Eventbrite provides payout reports for ticket sales, while Square provides sales and transfer reports for payment and point-of-sale activity. Those records describe different kinds of activity, so keep each channel identifiable in your bookkeeping.
Sales and payouts answer different questions
A sales report records activity against orders or transactions. A settlement or payout statement explains how a platform calculated an amount to transfer. Your bank statement confirms when money reached the account. The periods and amounts may differ.
For example, Shopify separates sales reporting from payment reporting, and its payout details can include charges, refunds, adjustments, fees and reserves. A pending amount may not yet be included in a bank payout. Shopify explains how to view payout details and transactions.
Amazon's Payments dashboard shows when and how much it expects to pay, and its account-level reserve can hold funds for obligations such as refunds, claims or chargebacks. eBay's payment reports include transaction and payout detail, including fees. Etsy's Payment account shows current and pending balances, fees, refunds and deposits. Check the report for the period you are reconciling rather than treating the bank credit as a sales figure. (Amazon, eBay, Etsy).
Follow one settlement through
Start with a defined period and gather the order or sales report, refund and adjustment detail, platform fee information, settlement report and bank statement. Keep the report exports with your accounting records so you can explain how a figure was calculated later.
Hypothetical settlement example
Suppose a platform statement shows £1,000 in sales, £120 in refunds and £90 in platform fees. The settlement is £790:
| Example item | Amount |
|---|---|
| Sales | £1,000 |
| Less: refunds | £120 |
| Less: platform fees | £90 |
| Settlement | £790 |
Use the platform statement and your VAT records to confirm how to record the actual settlement and its timing.
In your bookkeeping, record the sales and the deductions as separate components under the method and accounts agreed for your business. Then match the £790 settlement to the bank entry. If the platform statement and bank payment fall on different dates, keep the amount awaiting settlement identifiable and clear it when the payment arrives. A reserve or held balance should remain visible until the platform releases it or explains another adjustment.
Keep sales channels separate
If a business sells through a website and several marketplaces, identify the source of each order and settlement. A payment processor's deposit can cover many orders, and one business bank account can receive deposits from several channels. Without a channel reference, the same sales can be counted twice: once from the store report and again from a payment or bookkeeping feed.
Eventbrite and Square can also have separate reports. Eventbrite's payout report can show gross and net ticket sales, refunds, charges, credits and tax. Square's reports distinguish sales, refunds, fees and transfers. Use the reports to match what happened in each channel; do not assume their terms or calculations work the same way. (Eventbrite payout reports, Square sales and payment reports).
Before relying on an automated import, check which records it brings into your bookkeeping and how it labels sales, fees, refunds and transfers. Agree the workflow for the actual accounts and software in use. A connection between systems does not remove the need to check that the imported amounts match the platform statement and bank.
A monthly reconciliation check
For each channel, work through the period and note anything that remains unmatched:
- Compare order or sales totals with refunds, cancellations and other adjustments.
- Check platform fees and any reserve or balance carried forward.
- Match each settlement to the platform's payout detail and the bank entry.
- Keep separate references for channels and settlement periods.
- List timing differences, held balances and unexplained items for follow-up.
Keep records that explain the money received and spent by the business. HMRC sets out the record requirements for self-employed businesses and limited companies. VAT-registered businesses also need records of purchases and sales, VAT charged and paid, and supporting invoices and credit notes. Read HMRC's VAT record requirements.
A payout report does not settle every tax question. HMRC's rules for VAT on online marketplace sales can depend on matters such as where goods are located and whether the seller is established in the UK. Cross-border sales, overseas-held stock, multiple VAT treatments or uncertainty about who accounts for VAT need a fact-specific check. HMRC's guidance on goods sold through online marketplaces sets out the circumstances it covers. Do not assume a marketplace accounts for VAT on every seller's sales.
For help with transaction processing and bank or card reconciliations, see Swift's Bookkeeping and VAT Returns service. The existing bookkeeping handover guide explains what records and context to prepare.
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