There are 1.7 million businesses across the world that use Shopify. Therefore, maintaining accurate financial records is vital for the seamless operation of any business, and Shopify stores are no exception. So let’s explore some of the key reasons why bookkeeping plays a crucial role in the success of Shopify e-commerce stores. Shopify allows integrations with cloud-based accounting software.
The beauty of ecommerce is the wealth of platforms available to sell your products on. Regardless of your ecommerce platform, you’ll need to balance your books. Whether it’s Shopify, BigCommerce, WooCommerce, or Adobe Commerce, you must keep track of income, outgoings, and any relevant taxes.
Ideally, you want software that works with your inventory and order management so that all your sales invoices are easily trackable. Choosing the right accounting software that integrates with your e-commerce platform means you will have more time to spend on the more important things — like growing your business. Align your teams and grow your business with manufacturing software. Katana’s Xero manufacturing software helps you easily integrate your accounting, inventory, production, and sales.
Therefore, even before having a big team and many employees, it is essential to invest in keeping records of everything. You can choose either a virtual bookkeeper from the US or one from India. Depending on the location of your business and specific needs, choose either a US or Indian bookkeeper. You are assured of quality since all their virtual assistants get in-house training on various skill sets and tools to use.
You can keep track of every product bought or sold, the number of products available, and access reports. These reports show your total sales and total taxes monthly, quarterly, and annually. According to user reviews, it’s straightforward to use even without prior bookkeeping or accounting knowledge. You also get customizable sales tax, dashboard monitoring, transaction management, and exportable accounting reports.
Bench essentially works – like Botify – getting better over time. Your first few months their accounting team might have a bunch of questions regarding categorizations. You’re allowed to set the default estimate rules, and conveniently transform estimates into invoices. And to make matters worse, it’s nothing close to an attractive layout. On the bright side, however, at least you can upload your own templates to adequately personalize invoices to be sent to customers.
So, if you simply record the Shopify deposit you see in the bank account as sales, you are misstating revenue and missing other activity going on. Sign up for Shopify’s free trial to access all of the tools and services you need to start, run, and grow your business. It is important to note that COGS are different from your operating expenses, which are expenditures not directly related to the production of your products. While they are both subtracted from your business’s total sales figures, they should be recorded separately. The last in, first out accounting method assumes the inventory acquired most recently was sold first.
You have to accept many payment methodsNot offering enough payment methods is among the reasons for increased cart abandonment rates. Many payment options can help meet customers’ needs, but they can make Shopify accounting much more difficult. Inventory management is more complex than it looksShopify merchants know the ecommerce inventory control hurdle all too well. Tracking the amount, location, and pricing of available inventory can be a real headache.
its POS system.
You can, for instance, capitalize on it to single out customers from a certain low-sales location, and consequently target them with discounts. Additionally, you can take use it to send Bookkeeping for shopify multiple invoices simultaneously. Otherwise, you’ll enjoy working with Xero’s reports because they are holistically adjustable, and can be generated based on varying periods of time.
Shopify integrates with various accounting systems, including QuickBooks, Xero, and FreshBooks. These systems provide more advanced features for bookkeeping, reporting, and seamless integration with the Shopify platform. Bookkeeping records can help identify which products are in high demand during specific periods, allowing owners to plan their inventory and marketing strategies accordingly. Moreover, tracking trends in customer preferences can help optimize product offerings and enhance customer satisfaction. Accurate bookkeeping provides a wealth of financial data that can be utilized to identify trends and patterns within a Shopify store. By analyzing this data, owners can gain valuable insights into customer behavior, market trends, and seasonal fluctuations.
Bookkeeping for Shopify helps owners of Shopify e-commerce stores to handle their financial transactions effectively. If you need online bookkeeping services, you can hire a virtual bookkeeping assistant from Wishup to make your work easy. The qualified virtual assistants will help you track your finances and improve your business operations. Running a Shopify business involves juggling multiple responsibilities, and bookkeeping is often time-consuming and requires attention to detail. This is where a virtual bookkeeping assistant can be a valuable asset. Since 2021, over 67% of business owners have opted to enlist the services of a virtual assistant.
Therefore, you need a reliable accounting program that simplifies these tasks for you, allowing you to track all transactions and balance your books efficiently and accurately. As you set up your Shopify store, there are several aspects that you need to consider. First, you have to find a way to make your online business successful, and then you must understand how to do bookkeeping for Shopify properly.
FreeAgent is a perfect tool for businesses just starting and those companies that are a little more established. Kashflow is a fantastic software that assists businesses with all areas of accounting, including bookkeeping and payroll. It offers an HR tool that can be handy if your startup plans to hire staff, allowing you to keep operations streamlined in one platform.
A month-long free trial is available, and after that, Sage plans start from $25 per month, though introductory deals may be available. While it is more expensive than the other options, this plan does include support for unlimited users, which could work well for larger new businesses. Xero, another award-winning accounting software provider, is an excellent choice for ecommerce merchants, especially thanks to its scalable plans. It’s particularly popular among merchants in Australia, New Zealand, and the UK, with a growing user base in the US. Now that we’ve discussed the challenges related to Shopify accounting let’s take a step back and review the basics of accounting as a discipline.
Use tools to keep you informed of your financial data in real time. Also, cloud-based accounting makes it easier to streamline your books if you sell on multiple channels. Accounting in the cloud offers better scalability, so your bookkeeping practices can keep up with your business’s growth.
