Q&A: Can Shopify be used for accounting?
Learn the answers to the top 4 questions about using Shopify as an accounting solution. Maximize your ecommerce business with the right tools and insights.
1) Can Shopify be used for accounting?
While Shopify can be a valuable tool for managing certain aspects of your ecommerce accounting and ecommerce bookkeeping, it's important to note that it is not a comprehensive accounting software on its own. For more complex accounting requirements, it is advisable to use dedicated accounting software in conjunction with Shopify's integrations to ensure proper financial management and compliance.
Here are some accounting-related features and integrations offered by Shopify:
1) Order and Sales Tracking: Shopify allows you to track orders and sales within its platform, providing information on revenue, taxes, discounts, and shipping costs.
2) Invoicing: Shopify enables you to generate and send customer invoices.
3) Sales Reporting: Shopify provides detailed sales reports that can be useful for analyzing your store's performance. These reports can give you insights into revenue, product sales, customer behavior, and sales trends, allowing you to make informed decisions for your business.
4) Automatic Data Transfer: With the integration in place, key data such as sales transactions, fees, refunds, and taxes can be automatically transferred from Shopify to your accounting software. This reduces manual data entry, minimizes errors, and ensures accurate financial reporting.
2) Does Shopify link with accounting software?
While Shopify is primarily an ecommerce platform, it does offer integrations with various accounting software that can streamline and automate the accounting process for your online store, such as Finaloop, QuickBooks, Xero, and Sage. This integration allows you to sync sales data, expenses, and other financial information between your Shopify store and your accounting software, making it easier to manage and reconcile your financial records.
In addition to accounting software integrations, Shopify's app marketplace offers various third-party apps specifically designed for accounting and bookkeeping. These apps provide additional functionality and customization options to meet your specific accounting needs.
3) What does a Shopify bookkeeper do?
The specific responsibilities of a Shopify bookkeeper, just like an ecommerce bookkeeper will depend on the size and complexity of the ecommerce business and its accounting needs. Generally, their focus is on maintaining accurate financial records, ensuring compliance with tax regulations, and providing financial information to support decision-making and financial management.
Here are some key tasks performed by a Shopify bookkeeper:
1) Sales and Revenue Recording: Records and tracks all sales transactions that occur on the Shopify platform, ensuring accurate recording of revenue, discounts, taxes, and shipping costs.
2) Order and Invoice Management: Manages and organizes the orders received through Shopify, ensuring invoices are generated and sent to customers for their purchases.
3) Expense Tracking: Records and categorizes all Shopify-related expenses, such as product costs, shipping fees, payment processing fees, advertising expenses.
4) Inventory Management: Oversees the recording and tracking of inventory levels, including updates for new product additions, stock adjustments for sales and returns, and ensuring accurate valuation of inventory.
5) Bank Reconciliation: Reconciles the business's bank accounts with Shopify's records, ensuring that all transactions are properly recorded and accounted for.
6) Financial Reporting: Generates financial reports such as income statements, balance sheets, cash flow statements, and other relevant reports to provide insights into the business's financial performance, profitability, and cash flow.
7) Sales Tax Compliance: Ensures compliance with sales tax regulations, including calculating and remitting sales tax based on the applicable tax jurisdictions and requirements.
8) Integration with Accounting Software: Manages any integrations between Shopify and accounting software.
4) How do I add a bookkeeper in Shopify?
To add a bookkeeper to your Shopify store, you can follow these steps:
1) Access Staff Accounts: Log in to your Shopify admin panel and navigate to the "Settings" tab. From the drop-down menu, select "Account" and then click on "Staff accounts."
2) Add Staff Account: On the Staff accounts page, click on the "Add staff account" button.
3) Enter Details: Fill in the required information for the bookkeeper, including their name and email address.
4) Assign Permissions: Determine the level of access and permissions you want to grant to the bookkeeper. Shopify offers different permission levels such as full access, limited access, or custom access where you can define specific permissions for different areas of your store.
5) Save Changes: Once you have entered the details and assigned the appropriate permissions, click on the "Send invite" button to send an invitation to the bookkeeper. They will receive an email with instructions to set up their staff account.
6) Bookkeeper Accepts Invitation: The bookkeeper accepts the invitation and sets up their staff account in your Shopify store.
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We are a technology company providing automated end-to-end accounting service to ecommerce businesses. Our system connects to your apps, syncs all your data and reconciles your books in real-time, replacing your bookkeeper, your accounting software, and your ecomm integrations. We offer reconciled books available 24/7, tax-saving insights, and a single place for all your financial data.
*The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.*
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