bookkeeping for shopify automated

Integration with Shopify & Link My Books is seamless, ensuring that your sales and financial data are synced accurately. When it comes to Shopify bookkeeping, two top contenders for the Shopify best accounting software are Xero and QuickBooks Online. Read on to learn more about how accounting software can benefit your Shopify business. In order to keep your monthly P&L as accurate as possible you’ll need to be accounting for your inventory purchases to an inventory asset account. Track the cost of acquiring or producing your inventory and allocate it correctly to the products sold during a given period. This will help you calculate your COGS accurately and provide valuable insights into your gross profit margins.

It ensures that all the data that is shared between Shopify and your accounting software is organized properly, usable for you, and comprehensive. This guide is an introduction to accounting for Shopify sellers, and it is the first chapter of our Shopify accounting hub. In our hub, you’ll find resources that expand on the topics discussed here, and cover everything from apps and integrations to use for your store, to the taxes you need to account for and how.

Demonstrating The “First-Mover Advantage” In Business

Between the Xero App Marketplace and Shopify App Store, there are thousands of third-party apps you can use. While there’s value in getting expert help and advice, make sure you have a solid understanding of your numbers, no matter who you have managing your finances. Whether you do bookkeeping yourself or decide to hire a certified bookkeeper, understanding how money flows through your business is vital. Staying on top of it gives you a transparent view of how much stock you have, how much stock you need, and any emerging sales trends.

Your books aren’t there merely to help you claim back tax, tick legal boxes, or make the IRS happy. Sales tax is a huge topic that heavily depends on what you sell, where and how. For this reason, we have dedicated guides to help you better understand everything below.

Why Accounting Software Is Needed for Shopify Business?

This happens because Shopify doesn’t specify which deposit applies to which sale, nor does it tell you what (if any) fees were taken out. This can make it extremely difficult to reconcile what you see in your bank and what you see in shopify bookkeeping Shopify, particularly if you offer multiple payment methods to your customers. Your software should be able to directly sync with Shopify and pull real-time data from your store related to sales, returns, shipping fees, and more.

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