Ultimate Month-End Closing Checklist for E-Commerce Sellers (Amazon, Flipkart, Meesho, Shopify, D2C)
A complete financial, GST & accounting guide for online sellers in India
Introduction
Running an e-commerce business is exciting—but it comes with complex financial operations. Unlike traditional businesses, online sellers deal with marketplace commissions, payment gateways, returns, RTO, multiple tax deductions, settlement cycles, GST filings, stock fluctuations, and more.
A proper Month-End Closing Process ensures that:
✔ Your books are accurate
✔ GST returns match perfectly
✔ No settlement or revenue losses
✔ Inventory is correct
✔ Cash flow stays healthy
✔ You avoid penalties or tax notices
This blog gives you the complete month-end close checklist specifically tailored for e-commerce sellers selling on Amazon, Flipkart, Meesho, Ajio, Myntra, Shopify/WooCommerce, and their own website.
Let’s dive in.
1️⃣ Sales Consolidation & Reconciliation
1.1 Collect Sales Reports from All Channels
Every month, download sales data from:
- Amazon Seller Central
- Flipkart Seller Hub
- Meesho Supplier Panel
- Shopify/WooCommerce dashboard
- Payment gateway dashboards
- Offline/POS (if any)
1.2 Categorize Sales for GST
To ensure correct tax filings:
- B2C Local
- B2C Interstate
- B2B sales
- Export or Zero-rated supplies
- Marketplace vs. Own website
1.3 Reconcile Marketplace Orders
Cross-check:
- Orders placed vs. orders dispatched
- Returns vs. refunds processed
- COD vs Prepaid orders
- Missing orders in settlement reports
This prevents revenue leakage and settlement disputes.
1.4 Validate GST Application
Ensure correct:
- HSN codes
- GST slabs
- Marketplace tax calculation
- Invoicing formats
2️⃣ Payment Gateway & Bank Reconciliation
2.1 Reconcile Bank Statements
Match bank credits with:
- Marketplace settlements
- Razorpay/Cashfree/PayU deposits
- UPI/card settlements
- Refunds and chargebacks
Watch out for:
- Underpayments
- Missing deposits
- Incorrect fee deductions
2.2 Website Payment Gateway Reconciliation
For your website, reconcile:
- PG dashboard sales
- PG settlement reports
- Bank deposits
Include:
- Gateway fees
- GST on fees
- Chargeback losses
- Failed transactions
3️⃣ Returns, Refunds & Credit Notes
Returns are a major part of e-commerce—especially in fashion & lifestyle categories.
3.1 Download Returns Data
Get monthly reports for:
- Returns initiated
- Returns completed
- Refunds processed
- RTO & non-delivery returns
3.2 Inventory Adjustment for Returns
Check:
- Return received in warehouse
- Condition (saleable/damaged)
- Stock adjustment
- Reverse logistics charges
3.3 Issue Credit Notes
For cancelled or returned orders:
- Issue credit notes
- Adjust in GSTR-1
- Reflect in sales ledger
4️⃣ Inventory Management & COGS
4.1 Physical Stock Count
Conduct SKU-wise physical stock count:
- Compare physical vs. system stock
- Adjust for missing units
- Record damages
4.2 Record Inventory Adjustments
Adjust for:
- Damaged inventory
- Inventory used for sampling
- Influencer giveaways
- Promotional items
4.3 Update COGS (Cost of Goods Sold)
Formula:
Opening Stock + Purchases – Closing Stock = COGS
Accurate COGS = accurate profitability.
5️⃣ Purchase & Expense Ledger Review
5.1 Update Purchase Register
Record all vendor purchases for:
- Product stock
- Packaging material
- Raw materials
- Office supplies
5.2 Validate Supplier GST Invoices
Check:
- GSTIN
- HSN
- GST rate
- ITC eligibility
- Appears in GSTR-2B
5.3 Record Expense Invoices
Record expenses like:
- Amazon/FK/Meesho commissions
- Advertisement expenses
- Shipping and courier costs
- SaaS subscriptions
- Salary & rent
- Marketplace penalties
6️⃣ GST Month-End Preparation
6.1 Outward GST Reconciliation
Match sales register vs:
- Marketplace uploaded invoices
- GSTR-1 data
6.2 ITC (Input Tax Credit) Matching
Match purchase invoices with:
- GSTR-2B
- Blocked credits
- ITC reversal rules
6.3 GST Liability Review
Prepare:
- Output GST
- Input GST
- Final GST payable
- Adjustments from credit notes
7️⃣ TDS & TCS Reconciliation
7.1 Marketplace TCS Deduction
Check:
- TCS deducted by Amazon/Flipkart
- Match with books
- Match with Form 26AS
7.2 TDS You Must Deduct
Check for:
- Salary
- Professional fees
- Contractors
- Rent
7.3 Ensure Timely Payment
Record:
- TDS payable
- TDS challans
- Reconcile with general ledger
8️⃣ Profit & Loss Statement Preparation
8.1 Compute Net Revenue
Calculate:
- Gross sales
- Less returns
- Less cancellations
- Less discounts
8.2 Calculate Gross Profit
Gross Profit =
Net Revenue – COGS
8.3 Deduct Operating Expenses
Include:
- Salary
- Rent
- Marketplace fees
- Ads
- Payment gateway fees
- Utility & admin expenses
8.4 Finalize Monthly P&L
Helps analyze:
- Profit margins
- SKU-wise performance
- High-return categories
- Ad ROAS vs net profit
9️⃣ Balance Sheet Reconciliation
9.1 Assets
Review:
- Bank balances
- Inventory
- Advances
- Fixed assets
- ITC balances
9.2 Liabilities
Review:
- Vendor payables
- GST payable
- TDS payable
- Marketplace unsettled funds
9.3 Owner’s Equity
Update capital account with monthly profit.
🔟 Marketplace & Website Accounting Checks
9.1 Shopify/WooCommerce
Check:
- Orders received
- Fulfillment status
- Abandoned carts
- Discounts applied
9.2 Marketplace Performance Metrics
Amazon:
- Account health
- Performance notifications
Flipkart:
- Seller scorecard
- Return rates
Meesho:
- Penalties
- RTO %
1️⃣1️⃣ Document Archiving & Backups
11.1 Create Monthly Document Folder
Include:
- Sales reports
- Purchase register
- GST workings
- Invoice copies
- Settlement reports
- P&L & balance sheet
11.2 Backup
Store securely on:
- Google Drive
- Dropbox
- OneDrive
1️⃣2️⃣ Internal Team Review & Sign-off
12.1 Staff Confirmation
Get sign-off from:
- Accountant
- Inventory manager
- Dispatch team
- Owner/Director
12.2 Conduct Review Meeting
Discuss:
- Sales performance
- Stock shortages
- Cash flow position
- Profitability
- Upcoming festivals/offers
1️⃣3️⃣ Cash Flow Planning
13.1 Calculate Expected Inflows
From:
- Marketplaces
- Website payment gateway
- B2B invoices
13.2 Plan Outflows
For:
- Supplier payments
- GST
- Salaries
- Ads
- Inventory restocking
13.3 Plan Working Capital
Prevents cash crunch during sales peaks.
1️⃣4️⃣ Final Month-End Sign-off Checklist
✔ Books updated
✔ Marketplace reconciliations done
✔ Bank/PG reconciliation done
✔ Inventory checked
✔ GST prepared
✔ ITC reconciled
✔ P&L created
✔ Balance sheet updated
✔ Documents archived
✔ Team sign-off complete
🏁 Conclusion
A clean month-end close is the backbone of a healthy e-commerce business. This checklist ensures that every essential financial, compliance, and operational task is completed accurately—helping you avoid tax notices, profit loss, and inventory errors.
Whether you sell on Amazon, Flipkart, Meesho, Myntra, Ajio, or your own D2C website, this is the ultimate guide to ensure your books remain audit-proof and investor-ready.
