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How to Complete the Accounts & Taxes Setup Wizard for Amazon & Xero

Your 3 simple steps to correctly setting up your Amazon to Xero connection in Link My Books.

Daniel Little avatar
Written by Daniel Little
Updated over 3 weeks ago

⚠️ Important Disclaimer: Consult Your Accountant


​The team at Link My Books are happy to provide users with technical assistance in applying tax rules to their Link My Books setup. We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.

Link My Books simplifies the configuration of your account and tax rate preferences using our intuitive setup wizard. This wizard is a crucial step after connecting your Amazon sales channel and Xero accounting software.

Video Walkthrough

Step-by-Step Guide with Screenshots

Follow these steps to configure your accounts and tax settings accurately:

Step 1: Map Transactions to an Account

Link My Books streamlines the many different types of Amazon transactions by grouping them into 9 main categories. On this first step of the wizard, you will assign a corresponding account for each category from the dropdown menus.

Link My Books – Accounts & Taxes Setup Wizard screen showing Step 1: 'Map transactions to an account'. Two options are presented: 'Default Chart Accounts' (highlighted as 'Most Popular') to let the system add a suitable chart of accounts to Xero, and 'Custom Chart Accounts' to use an existing chart of accounts set up in Xero. The Amazon Europe account is selected in the top-right dropdown, and the progress steps on the left include 'Confirm VAT registration status' and 'Confirm tax rates' as upcoming steps

  • Default Accounts: You can accept our pre-filled default account suggestions. Opting for our default accounts will create them as new account codes within your Xero Chart of Accounts (if they don't already exist).

    💡 Quick Tip: Default Accounts Most users find it beneficial to utilise our default account suggestions, as this provides a clear and organised way to identify data synchronised from Link My Books within Xero.

    Link My Books – Accounts & Taxes Setup Wizard Step 1: 'Map transactions to an account' screen. A detailed mapping interface displays various Amazon transaction categories (like Sales, Refunds, FBA Inventory Reimbursement, Seller Fees, etc.), each paired with a transaction type (Revenue, Expense, Current Liability, or Current Asset) and a corresponding Xero account name (e.g., LMB1: Amazon Sales, LMB3: Amazon Seller Fees). The Amazon Europe account is selected in the top-right corner. Navigation buttons labeled 'Exit' and 'Next' are at the bottom, along with a help link titled 'Watch Video Guide'

  • Custom Accounts: If you prefer to pick your own existing accounts from your Xero Chart of Accounts, you can do so via these dropdown menus.

    Link My Books – Accounts & Taxes Setup Wizard Step 1: 'Map transactions to an account' screen with a dropdown menu expanded. The dropdown, associated with the 'Amazon Sales' transaction category, displays alternative account names such as '200: Sales', '260: Other Revenue', '270: Interest Income', '310: Cost of Goods Sold', '320: Direct Wages', and '321: Materials Purchased'. A red arrow points to the expanded dropdown. Other transaction categories like Amazon Refunds, Seller Fees, FBA Fees, and Amazon Loans remain mapped with their default accounts

  • Get More Info: Throughout the setup wizard, keep an eye out for the blue 'i' icon (ℹ️). Hovering over this icon will provide additional clarification and details for that specific field or setting.

    Link My Books – Accounts & Taxes Setup Wizard Step 1: 'Map transactions to an account' screen showing the ‘Amazon Sales’ transaction category highlighted. A tooltip is expanded next to the information icon beside 'Amazon Sales', containing the text 'Sales revenue'. A red arrow points to the information icon. The table includes multiple Amazon transaction categories like Refunds, Seller Fees, FBA Fees, and Loans, each with their transaction type and mapped account name

Step 2: Confirm VAT Registration Status (UK Users Only)

This step is specifically for businesses operating in the UK.

  • Here, you will confirm if your business holds a UK VAT registration. Link My Books uses this information to correctly group your sales for VAT reporting purposes.

    Link My Books – Accounts & Taxes Setup Wizard Step 2: 'Confirm VAT registration status' screen. The user is prompted with the question 'Are you VAT registered in the UK?' and a dropdown menu labeled 'Select an option...' is shown. On the left-hand progress bar, 'Map transactions to an account' is marked as complete, and 'Confirm VAT registration status' is the current step. The 'Confirm tax rates' step is yet to be completed. A 'Next' button at the bottom is disabled

Step 3: Confirm Tax Rates

This is the final step in the wizard to confirm your tax rate preferences.

  • Tailored Defaults: While this step might seem comprehensive, Link My Books simplifies it significantly. Based on your previous responses and your business location (detected from Xero), we will automatically provide you with a tailored set of default tax rates for your confirmation.

    💡 Good to Know: Tailored Tax Rates

    Link My Books intelligently provides default tax rates specifically tailored to your business's location. For more in-depth, country-specific tax information, please refer to our Accounts & Tax Mapping section in the main app.

    Link My Books – Accounts & Taxes Setup Wizard Step 3: 'Confirm tax rates' screen. The page displays several transaction categories grouped under sections like Sales, Fees (Pre Aug 2024), Fees (Post Aug 2024), and Other Transactions. Each transaction category, such as 'Standard Rated Goods Shipped to UK', 'Amazon Fees', and 'Amazon Advertising Costs (EU)', is paired with a tax rate dropdown selection (e.g., '20% VAT on Income', 'Reverse Charge Expenses (20%)', or 'No VAT'). At the bottom, there's a checkbox labeled 'I've confirmed these tax rates with my accountant...' and two buttons labeled 'Previous' and 'Confirm'

  • Confirm & Save: After reviewing and confirming your chosen tax rates, tick the confirmation checkbox and click 'Confirm' to save your settings.

If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].

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Amazon account and tax rate mappings for Australian businesses
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