Link My Books Setup Guide 2026 — Amazon to Xero Integration for UK Sellers
A complete, practical Link My Books setup guide for Amazon sellers using Xero in 2026. Learn how to connect Amazon Seller Central, configure Xero account mapping, set VAT rules, post settlement summaries, reconcile Amazon payouts and avoid the common bookkeeping mistakes that distort sales, fees, VAT and profit margins.
What Is Link My Books in 2026?
Link My Books is an ecommerce bookkeeping automation tool that connects Amazon, eBay, Etsy, Shopify, TikTok Shop, Walmart, WooCommerce and Square to Xero or QuickBooks Online. For Amazon sellers, it reads settlement and payout data, separates sales, refunds, shipping income, marketplace fees, FBA charges, advertising, VAT and other adjustments, then posts clean summary entries to Xero so your bank reconciliation matches the Amazon payout.
This matters because an Amazon payout is not the same as Amazon revenue. A single deposit can include product sales, shipping income, gift wrap, refunds, referral fees, fulfilment fees, storage fees, advertising spend, reimbursements, VAT on sales, VAT on Amazon fees and FX differences. If you record only the bank deposit as income, your revenue is understated, your expenses are hidden, your VAT return may be wrong, and your gross margin report becomes unreliable.
This 2026 Link My Books setup guide is written for UK Amazon sellers who want to connect Amazon to Xero using Link My Books, keep their records HMRC-ready, and build a repeatable monthly bookkeeping workflow. For broader ecommerce bookkeeping, see our Ecommerce Accounting Guide and Amazon Accounting Hub.
2026 Update: What Changed?
Link My Books now supports more channels than the older Amazon/eBay/Etsy-only setup, including Shopify, TikTok Shop, Walmart, WooCommerce and Square. Pricing is now more clearly tied to monthly order volume and sales channels, with a 2026 price update scheduled from 1 July 2026. The UK VAT registration threshold remains a critical setup point for sellers — Amazon sellers should monitor rolling 12-month taxable turnover, not just calendar-year sales.
Who Should Use This Link My Books Setup Guide?
This guide is suitable for sellers who already use Xero, are moving from spreadsheets to automated Amazon bookkeeping, or are cleaning up books after recording Amazon deposits incorrectly. It is especially useful if you sell through FBA, FBM, Amazon UK, Amazon EU, Amazon US, or multiple Amazon regions from one UK business.
Amazon FBA Sellers
Split referral fees, FBA fulfilment fees, storage fees, removal fees, advertising and reimbursements into proper Xero accounts instead of hiding them inside net deposits.
FBM & Hybrid Sellers
Track sales, shipping income, merchant fulfilment costs, Amazon fees and refunds even if you fulfil orders yourself or mix FBA and FBM in the same Seller Central account.
Multi-Marketplace Sellers
Handle Amazon UK, EU and international marketplaces with separate currency, VAT and sales-channel reporting so each market’s profitability is visible.
Why Amazon to Xero Automation Is Better Than Manual Bookkeeping
Manual Amazon bookkeeping usually starts with downloading a settlement report from Seller Central, copying data into a spreadsheet, grouping dozens of transaction types, working out VAT codes and then creating a manual journal in Xero. That process is slow and error-prone. Worse, many sellers skip the detail entirely and code the bank deposit to “Sales”, which makes the Profit & Loss look cleaner than it really is.
Link My Books removes most of that manual work. It imports the payout data, applies tax logic based on your settings, creates the settlement summary, and posts the entry to Xero. In the best setup, the posted entry matches the bank deposit precisely, meaning the reconciliation can be completed quickly from the Xero bank feed.
Do Not Record Amazon Payouts as Sales
Amazon payouts are net settlements, not gross sales. The deposit has already been reduced by fees, refunds, FBA costs, ad spend and other adjustments. A correct Amazon to Xero integration records gross sales separately from expenses and VAT, then uses the net settlement amount only for bank reconciliation.
Key Features of Link My Books for Amazon Sellers
Automated Settlement Posting
Each Amazon settlement is converted into a Xero entry that separates sales, refunds, fees, taxes, reimbursements and adjustments rather than posting one vague bank deposit.
VAT-Aware Accounting
Configure UK VAT, EU VAT, product tax groups, zero-rated products and reverse-charge fee treatment so VAT returns are based on clean, mapped transaction data.
Bank Reconciliation Matching
Posted settlement summaries are designed to match the Amazon disbursement in Xero, reducing reconciliation from a spreadsheet exercise to a quick review-and-match process.
Product Group Tax Rules
Use product groups to apply different VAT rates to standard-rated, reduced-rated and zero-rated goods, which is vital for books, food, supplements, children’s products and mixed catalogues.
Advertising & Fee Visibility
Amazon PPC, referral fees, FBA fulfilment, storage, subscription and refund administration fees can be mapped to separate Xero accounts for better margin analysis.
Cleaner Profit Reporting
Because gross revenue and costs are separated, your monthly P&L shows real Amazon profitability instead of hiding fee leakage inside reduced bank deposits.
Before You Start: Amazon to Xero Setup Checklist
Before opening Link My Books, prepare your Xero organisation and Seller Central access. A clean setup prevents most posting errors, VAT mismatches and bank reconciliation issues later.
- Active Xero organisation with correct base currency, financial year-end and VAT settings
- Admin or adviser-level access to Xero so you can authorise apps and create accounts
- Amazon Seller Central login with permission to authorise third-party apps
- List of Amazon regions you sell through, such as Europe, North America or Australia
- Confirmation of VAT status: not VAT-registered, standard VAT, cash accounting, flat rate, EU OSS, or multiple EU VAT registrations
- Dedicated Xero nominal codes for Amazon sales, refunds, shipping income, FBA fees, advertising and adjustments
- A decision on whether to track Amazon by Xero Tracking Category, sales channel, marketplace or both
- Bank account in Xero where Amazon payouts arrive
- Last closed Amazon settlement available for testing the first sync
Best Practice
Create dedicated Amazon accounts in Xero before you connect the app. This makes mapping faster and ensures Amazon fees, FBA charges and advertising costs do not get mixed with general business expenses. For a broader Xero setup, read our Xero Setup Guide for Ecommerce Sellers.
Recommended Xero Chart of Accounts for Link My Books
Link My Books can only post accurately if the Xero accounts behind it are structured properly. The goal is to keep Amazon performance visible without creating hundreds of unnecessary nominal codes. Use a clean chart of accounts with separate sections for Amazon income, Amazon cost categories, VAT liabilities and clearing accounts.
Recommended Amazon → Xero Account Mapping
Link My Books Amazon to Xero Setup Guide 2026
Follow these steps to complete a clean Amazon to Xero integration. The process is usually straightforward, but take extra care with VAT settings, product groups and bank accounts because these determine how accurately your reports and VAT returns behave.
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Create or Access Your Link My Books Account
Go to Link My Books and start a trial or log in to your existing account. Use the business owner or finance-team email that should receive settlement notifications. During onboarding, choose Amazon as the sales channel and Xero as the accounting platform.
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Connect Amazon Seller Central
Select Amazon and choose the correct Amazon region. For many UK sellers this means Amazon Europe, which can include multiple marketplaces such as the UK, Germany, France, Italy, Spain, Netherlands, Sweden and Poland under one regional connection. Follow the Amazon authorisation screen and approve the connection. Link My Books uses the connection to read settlement, order and fee data needed for bookkeeping.
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Connect Xero Securely
Choose Xero as the bookkeeping platform and authorise Link My Books from the Xero login screen. Select the correct Xero organisation if your login has access to multiple businesses. After authorisation, Link My Books will be able to read your chart of accounts and tax rates, and post entries based on the mappings you approve.
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Confirm Your Business and VAT Status
Before mapping any accounts, confirm whether the business is VAT-registered, not VAT-registered, using the Flat Rate Scheme, using VAT Cash Accounting, registered for EU OSS, or registered for VAT in multiple EU countries. This determines which tax rules Link My Books should apply to UK sales, export sales, EU sales and Amazon fee VAT.
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Create an Amazon Clearing Account in Xero
In Xero, create a dedicated clearing account called Amazon Clearing Account or Amazon Settlement Clearing. This account acts as the bridge between the Link My Books settlement entry and the real Amazon payout in your bank feed. Do not use your main current account as the clearing account, because the main bank account should only show actual bank feed transactions.
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Map Amazon Sales and Income Accounts
Map product sales, shipping income, gift wrap income and promotional discounts to separate Xero accounts. This allows your monthly reports to show where revenue is coming from and how much discounting is reducing sales. If you sell both standard-rated and zero-rated products, use product grouping and tax settings to split VAT treatment accurately.
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Map Amazon Fee and Expense Accounts
Map referral fees, FBA fulfilment fees, storage fees, subscription fees, refund administration fees, advertising costs and adjustment charges to dedicated expense accounts. Do not map every fee to “General Expenses”. Fee-level visibility helps you understand whether margin pressure is coming from fulfilment, advertising, returns, storage or marketplace commission.
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Configure Product Groups and VAT Rates
If your catalogue contains products with different VAT rates, create product groups in Link My Books. For example, map standard-rated goods to the 20% VAT rate, zero-rated goods to zero-rated income, and out-of-scope export sales to the correct export or out-of-scope treatment. This step is essential for sellers with books, food, children’s clothing, health products or mixed SKUs.
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Choose Tracking Categories or Marketplace Segments
If you want to analyse Amazon UK separately from Amazon Germany or Amazon US, enable Xero Tracking Categories or use separate income accounts. A simple structure is to use one tracking category called “Sales Channel” with options such as Amazon UK, Amazon EU, Amazon US, Shopify and eBay. This keeps the P&L readable while still giving channel-level performance data.
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Review and Post the First Settlement
Open the latest closed Amazon settlement inside Link My Books, review the sales, refund, fee and tax breakdown, and compare the net settlement amount to the Amazon disbursement. Once the mapping looks correct, post the settlement to Xero. Check the resulting Xero entry before enabling any automatic posting.
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Reconcile the Amazon Payout in Xero
When the Amazon payout appears in your Xero bank feed, reconcile it against the clearing account entry created by Link My Books. If the setup is correct, the bank amount should match the settlement entry. Investigate mismatches before posting further settlements because early mapping errors can compound quickly.
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Import Historical Settlements Carefully
If you are catching up bookkeeping, import historical Amazon settlements only after the first live settlement has been tested. Work month by month, and make sure each posting period agrees to the bank deposits and VAT returns already filed. If prior VAT returns were wrong, ask your accountant whether corrections are needed before changing historic data.
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Enable Auto-Posting After Testing
Once you have reviewed at least one settlement, reconciled the payout, checked VAT codes and confirmed the P&L looks right, enable auto-posting. Continue reviewing monthly reports because automation reduces manual entry, but it does not remove the need for accounting oversight.
Setup Complete
After setup, your Amazon bookkeeping workflow should be: Link My Books imports settlement data, posts the summary to Xero, the Amazon payout appears in the bank feed, and you match the payout to the clearing account. Your monthly review then focuses on exceptions, VAT reasonableness and margin analysis rather than manual data entry.
Example Amazon Settlement Journal in Xero
The exact Xero posting depends on your settings, VAT status and settlement details. The example below shows the accounting logic behind an Amazon payout. All figures are illustrative and simplified.
Example Settlement Summary — Amazon UK Payout £8,240.50
| Account | Debit (£) | Credit (£) | Purpose |
|---|---|---|---|
| Amazon Clearing Account | 8,240.50 | — | Net amount due from Amazon |
| Amazon Referral Fees | 1,125.00 | — | Marketplace commission expense |
| FBA Fulfilment Fees | 1,480.00 | — | Amazon fulfilment charges |
| Amazon Advertising | 620.00 | — | PPC spend deducted in settlement |
| Sales Returns | 734.50 | — | Refunded product revenue |
| Amazon Sales Revenue | — | 10,900.00 | Gross sales before deductions |
| Amazon Shipping Income | — | 320.00 | Customer delivery charges |
| VAT Control Account | — | 540.00 | Net VAT output less input VAT example |
When the real bank deposit arrives, Xero reconciliation clears the Amazon Clearing Account against the bank feed. This is why the clearing account is so important: it allows the detailed settlement entry and the bank transaction to meet without distorting sales or expenses.
Amazon VAT Settings in Link My Books and Xero
VAT is the highest-risk part of Amazon bookkeeping. The right treatment depends on the seller’s VAT registration, customer location, fulfilment location, product type and Amazon marketplace. Use the following table as a planning guide, then confirm final treatment with your accountant before filing VAT returns.
| Scenario | Typical Xero Treatment | What to Check | Risk if Wrong |
|---|---|---|---|
| UK sale of standard-rated goods | 20% VAT on income | Product group, UK VAT registration status, tax-inclusive vs tax-exclusive reports | Output VAT understated or overstated |
| UK sale of zero-rated goods | Zero-rated income | Evidence that product qualifies for 0% VAT | Incorrect VAT charged or missed exemption evidence |
| Export sale from UK to non-UK customer | Zero-rated export or out of scope depending on route | Export evidence, delivery location, marketplace tax collection rules | HMRC may challenge zero-rating without evidence |
| Amazon UK fees | VAT on expenses / input VAT where valid | Amazon invoice location and VAT invoice availability | Input VAT missed or claimed incorrectly |
| EU marketplace sales | EU OSS, local VAT or out-of-scope/zero-rated depending on setup | Stock location, customer country, VAT registrations, OSS use | Country-level VAT liability may be wrong |
| Flat Rate Scheme seller | Flat rate method in Xero and Link My Books | Scheme percentage, input VAT restrictions, turnover eligibility | VAT return boxes calculated under wrong scheme |
2026 VAT Reminder for UK Sellers
UK VAT registration is based on taxable turnover over a rolling 12-month period, not only your tax year or calendar year. If your Amazon and other taxable sales go over the registration threshold, you must review registration timing promptly. Marketplace fees and refunds do not reduce taxable turnover for threshold monitoring in the same way they reduce bank payouts.
Link My Books Pricing 2026: What to Know Before You Publish a Price Table
Link My Books pricing is now best treated as a live variable rather than a fixed static table. The pricing calculator uses monthly order volume across channels, sales channels connected, and currency. Official guidance also notes that 2026 plan prices change from 1 July 2026 while plan limits, features and support remain the same.
Because pricing can change, the safest SEO approach is to explain how pricing works and link to the official Link My Books pricing page instead of hard-coding old prices. This keeps the article accurate and reduces the risk of misleading readers after plan updates.
- Best for new Amazon sellers
- Lower monthly order volume
- Amazon to Xero posting
- Suitable for simple VAT setups
- Confirm 2026 price before signup
- Amazon plus other channels
- Higher order volume
- Good for EU marketplace sellers
- Useful for VAT product grouping
- Review 2026 billing update
- High order count sellers
- Multi-region Amazon operations
- Accounting team workflows
- Useful for catch-up imports
- Validate plan before migration
SEO Note for 2026 Pricing
Do not publish outdated “from £19/month” pricing without verifying it. Link My Books has published a 2026 price change notice, so a future-proof article should say that pricing is based on order volume and connected sales channels, then send users to the live calculator.
Link My Books vs A2X in 2026
Link My Books and A2X are both strong ecommerce accounting automation tools, but the best choice depends on channels, reporting needs and inventory complexity. The comparison below is updated for 2026 and avoids older claims that Link My Books supports only Amazon, eBay and Etsy.
| Feature | Link My Books | A2X |
|---|---|---|
| Best Fit | UK ecommerce sellers wanting simple payout-to-Xero automation with strong tax presets | Multi-channel sellers needing deep settlement automation and advanced inventory/COGS workflows |
| Amazon to Xero | Strong Amazon settlement posting and bank matching | Strong Amazon settlement posting and bank matching |
| Supported Channels | Amazon, Shopify, eBay, Etsy, TikTok Shop, Walmart, WooCommerce, Square | Amazon, Shopify, eBay, Walmart, Etsy and other major ecommerce platforms |
| Tax Setup | Guided tax wizard with VAT, sales tax and GST presets by region | Detailed tax mapping and accounting-rule configuration |
| COGS Support | Useful product-cost features on some channels, but review fit for complex inventory | Often preferred for advanced COGS and inventory integrations |
| Ease of Setup | Generally simple onboarding for sellers and accountants | Powerful but may require more detailed configuration |
| Pricing | Live calculator based on orders and channels; 2026 update applies from July 2026 | Plan pricing varies by channel and transaction volume; check current pricing |
| Internal Guide | Read A2X vs Link My Books | Read A2X Setup Guide |
Common Link My Books Setup Problems and Fixes
1. Amazon Settlement Is Missing
Likely cause: The settlement is not closed yet, Amazon authorisation has expired, or the marketplace region was connected incorrectly.
Fix: Confirm the settlement is closed inside Seller Central, refresh the connection in Link My Books, and check that the correct Amazon region is connected. If you sell in Europe, remember that one Amazon Europe connection can cover multiple marketplaces, depending on how your seller account is structured.
2. Xero Posting Error or Missing Account
Likely cause: A mapped Xero account was archived, renamed, deleted or set to an incompatible account type.
Fix: Open the Link My Books account mapping screen and re-select the Xero account from the current chart of accounts. Avoid changing Xero account codes immediately after setup unless you are prepared to refresh mappings.
3. Bank Deposit Does Not Match the Settlement
Likely cause: Timing differences, FX conversion, a third-currency bank account, missed adjustments or a settlement posted to the wrong clearing account.
Fix: Compare the net payout inside Amazon, Link My Books and Xero. For multi-currency payouts, ensure the Xero bank account currency and settlement currency are configured correctly. Do not force-reconcile large differences to suspense without investigating.
4. VAT Return Looks Wrong After Posting
Likely cause: VAT status, product groups, tax rates or EU sales rules were configured incorrectly.
Fix: Review the VAT settings in Link My Books, confirm Xero tax rates, and test one settlement before posting historical data. If VAT returns were already filed from incorrect data, ask your accountant whether adjustments or error corrections are required.
5. Amazon Fees Are All Going to One Expense Account
Likely cause: The default mapping was not customised during setup.
Fix: Split referral fees, FBA fees, storage fees and advertising into separate expense accounts. This makes your monthly Amazon P&L much more useful because you can see whether fulfilment, PPC or returns are eroding margin.
Monthly Workflow After Setup
Automation is only valuable if it supports a consistent review routine. Use this monthly process once Link My Books is connected to Xero.
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Review Posted Settlements
Check that every closed Amazon settlement for the month has been posted to Xero and that no settlement has been duplicated.
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Reconcile Amazon Bank Deposits
Match every Amazon payout in the Xero bank feed to the Amazon Clearing Account entry. Investigate unmatched balances immediately.
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Check VAT Reasonableness
Run the Xero VAT report and sense-check output VAT, input VAT on Amazon fees, zero-rated sales and any EU marketplace treatment before filing.
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Review Amazon Fee Ratios
Compare referral fees, fulfilment fees, storage fees and advertising as a percentage of Amazon revenue. Fee ratios rising faster than sales usually indicate pricing or fulfilment problems.
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Post COGS Separately
Link My Books settlement automation does not automatically solve all inventory accounting. Make sure cost of goods sold is posted from your inventory system, stock movement records or accountant’s monthly COGS calculation.
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Archive Source Documents
Save Amazon settlement reports, VAT invoices and monthly summaries. Clean source documents make year-end accounts, VAT inspections and lender reviews much easier.
Final Link My Books Setup Checklist
- Amazon Seller Central connection authorised and active
- Xero organisation connected securely
- Correct Amazon region selected
- All relevant marketplaces included
- Amazon Clearing Account created in Xero
- Sales, shipping income, discounts and refunds mapped separately
- Referral fees, FBA fees, storage fees and advertising mapped separately
- VAT status and VAT scheme configured correctly
- Product groups created for mixed VAT-rate catalogues
- First settlement reviewed before posting
- First Xero posting checked against the Amazon settlement report
- First bank payout reconciled to clearing account
- Historical imports completed only after live test success
- Auto-posting enabled only after tax and mapping review
- Monthly review process documented for your accountant or finance team
Need Help Setting Up Link My Books and Xero?
Build a clean Amazon bookkeeping system with the right Xero chart of accounts, VAT settings, clearing account, fee mapping and monthly reconciliation workflow from day one.
Link My Books Setup Guide 2026 — FAQs
For a simple UK Amazon seller, the basic connection can be completed quickly. A proper accounting setup usually takes longer because you need to check Xero accounts, VAT settings, product groups, clearing accounts and the first settlement posting. Allow extra time if you sell across multiple Amazon regions or need to import historical data.
No. Link My Books automates settlement posting and reduces manual bookkeeping, but it does not replace professional judgement on VAT, year-end accounts, stock valuation, COGS, Corporation Tax or Self Assessment. The best setup is Link My Books for data automation plus an ecommerce accountant for review and compliance.
The Amazon Clearing Account is a temporary account used to match detailed settlement entries to real bank deposits. Link My Books posts the net settlement amount to the clearing account, then the Amazon payout in your bank feed clears against it during reconciliation. This keeps gross sales and expenses separate while still matching the bank deposit.
Yes. Amazon FBA-related costs such as fulfilment, storage, removal and other FBA fees can be mapped to separate Xero expense accounts. This is important because FBA fees can materially affect margin, especially for bulky, low-margin or slow-moving products.
Yes. Non-VAT-registered sellers can still use Link My Books to post Amazon sales, fees, refunds and payouts into Xero. The key is choosing the correct non-VAT setup so Xero does not generate VAT return entries. You should still monitor taxable turnover carefully in case registration becomes mandatory.
Link My Books focuses primarily on payout and settlement accounting. Some product-cost features exist for certain workflows, but Amazon sellers should still have a robust stock and COGS process through inventory software, spreadsheets reviewed by an accountant, or a separate monthly journal. Settlement automation alone does not guarantee accurate gross profit.
Yes, if your Xero records are incomplete or if you are moving from spreadsheets and need a clean current-year history. However, import historical settlements only after your live setup has been tested. If VAT returns have already been filed using old data, speak to your accountant before overwriting or duplicating prior-period entries.
Neither is universally better. Link My Books is often attractive for sellers wanting a simple guided setup, strong tax presets and payout matching across popular ecommerce channels. A2X is also excellent and may be preferred for certain multi-channel, inventory and COGS-heavy workflows. The right choice depends on sales channels, volume, reporting needs, VAT complexity and your accountant’s preferred process.