For CAs: reconciling e-commerce clients' marketplace income without losing a weekend

Why e-commerce clients are different

A traditional business invoices customers and receives payment. An online seller's income passes through a marketplace, gateway or courier that collects, deducts fees, withholds tax and pays a net amount. The bank shows the net. The books need the gross, the fees, the taxes and proof that the net is right.

What to collect each month

For each platform the client sells on:

• Payments, settlement or remittance report (order level)
• Orders report
• Fee invoices from the platform
• Tax reports showing TCS collected and TDS deducted
• Bank statement for the month

Ask clients to save these in a dated folder every month rather than at year end. A one-page checklist for clients helps.

The monthly process

1. Match payouts to the bank

Every payout in the platform's report should be in the bank. Differences here are rare and important.

2. Gross up the income

From the payout report, total gross sales of delivered orders, returns, and each category of fee and deduction. The net should tie to the bank.

3. Fees and input credit

Platform fee invoices usually carry GST. Match invoice totals to the fees in the payout report before claiming credit.

4. TCS and TDS

Match TCS collected by the platform with what appears in the client's GST records, and TDS with their tax credit statement. Mismatches are easier to fix month by month. Our guide on TCS and TDS on marketplace payouts is useful for clients too.

5. Flag money owed

While doing the above, you will see delivered orders with no payment, deductions that look wrong and returns charged against delivered orders. These are not your job to chase, but pointing them out adds real value for the client.

Make it scalable across clients

Doing this by hand for many clients does not scale. Software that reads each platform's reports and produces an explained payout summary turns hours into minutes per client and gives you a clean export for the books.

The Veritally partner programme

Veritally works with CAs, agencies and marketplace consultants. Your clients get a free check, you get an explained summary and an accountant export, and partners earn a share of what each client pays in their first year, on terms agreed in writing. See the partner programme or read our month-end bookkeeping routine to share with clients.