A2X and Settle: Revolutionizing Ecommerce Accounting

LearnMay 20, 20253 min read
Pete Potsos, Head of Accounting Partnerships

The Ecommerce Accounting Dilemma

Geoff from A2X and Asher from Settle unpack the accounting challenges ecommerce brands face—and walk through how their integration helps solve them.

Reconciling payouts from platforms like Shopify, Amazon, and eBay is notoriously complex. As Geoff from A2X explained, "A payout is usually made up of your gross sales, minus your fees, your refunds, your gift cards, your taxes, and so much more."

Without proper accounting, businesses risk misrepresenting their financials and potentially over or underpaying taxes.

Many ecommerce operators resort to inefficient methods:

  1. Ignoring the complexity altogether
  2. Making educated guesses about their financials
  3. Manually categorizing transactions in spreadsheets

These approaches are time-consuming, error-prone, and ultimately hinder business growth.

Calculating True Landed Costs

Asher from Settle emphasized another critical pain point: determining accurate landed costs. "The majority [of businesses] said 4 out of 10, 3 out of 10, they could produce a number, they didn't feel good about it," he noted regarding confidence in profit margins. Without knowing the true cost of getting inventory into warehouses—including tariffs, shipping, and other expenses—businesses struggle to price products correctly and evaluate inventory accurately.

This is where Settle steps in: by automatically calculating Weighted Average Cost (WAC) at the SKU level, including landed costs, Settle gives ecommerce brands a more complete and accurate view of profitability.

The A2X and Settle Integration Solution

The new integration between A2X and Settle addresses these challenges head-on.

Here's how it works:

  • Settle tracks all expenses related to purchase orders, including additional costs like tariffs and shipping.
  • This data is automatically synced with A2X on a daily basis.
  • A2X then posts the accurate landed costs alongside payout reconciliations to the company's accounting software.

The result is a fully reconciled, audit-ready P&L—with clean revenue data from A2X and matched COGS data from Settle—all without manual data entry.

Setting Up the Integration

To get started with the A2X and Settle integration:

  • Create accounts with both A2X and Settle if you don't already have them.
  • In A2X, go to Settings > Cost of Goods Sold to map your accounts.
  • Click on "Settle" in the A2X interface and authorize the connection.
  • Enable COGS in A2X and begin posting data.

Both companies offer free onboarding support to help users navigate the setup process.

Benefits for Ecommerce Businesses

This integration offers several key advantages:

  • Fully automated reconciliation from revenue to COGS
  • Accurate, SKU-level WAC synced daily into your accounting platform
  • Accurate profitability metrics for better decision-making
  • Time savings from eliminating manual data entry and reconciliation
  • Improved inventory valuation and pricing strategies

As Stephen Brown from Ledger Gurus noted, "Settle's A2X integration solves one of the great problems in inventory and COGS accounting, correlating sales to landed product cost."

Smarter Numbers, Stronger Business

The A2X and Settle integration represents a significant step forward for ecommerce accounting. By automating complex processes and providing accurate, real-time data, it allows businesses to focus on growth rather than getting bogged down in financial minutiae.

Together, A2X and Settle deliver end-to-end accuracy—ensuring ecommerce businesses have the clean, categorized revenue data and precise COGS they need to close the books with confidence.

As the ecommerce sector continues to expand, tools like this will be essential for maintaining accurate financials and making informed business decisions.

For more information or to get started with the integration, visit settle.com/integrations/a2x

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