Bookkeeping

How does Finaloop work?

By Finaloop Team
July 09, 2022
Finaloop is bringing ecommerce accounting into 2022.
 
We use a combination of technology and ecommerce experts - accountants, bookkeepers, and tax experts - to reduce the undeniable pain of dealing with ecommerce bookkeeping. We want you to have all the data you need to run your business in real-time. 
 
No matter how you have dealt with your books until now, whether DIY in Excel, GoDaddy, Quickbooks, or with a bookkeeper, we're here to help you get your books up and running. 
 
 

How does Finaloop work?

In short, we connect to everywhere to sync everything. We'll explain.

Our goal is to create fully accurate financials from January 1 of the current tax year, based on ecommerce best practices. This allows you to have consistent financials all year so you can compare your growth month over month and be ready for an easy tax filing at year-end.

We can support both cash basis and accrual basis books so you have the flexibility you need for your business.

 

Sales channels and payment processors

We connect to your sales channels and payment gateways, pull in your data in real-time, and automatically map them to your P&L and balance sheet based on tax rules and best accounting practices.

We sync with Shopify, WooCommerce, Amazon, Walmart, eBay, Etsy, Stripe, Shop Pay, Paypal, and Afterpay, to name a few.

Here is what you will see in your financials (each broken down by channel):

  • Your gross sales
  • Shipping income
  • Discounts & promotions
  • Refunds & returns
  • Merchant fees (processing fees)
  • Selling fees
  • Disputes
  • Service fees
In your balance sheet, you will also see undeposited funds which is the balance left in your sales channel or payment gateway that hasn't yet been deposited into your account. This allows you to have a better idea of expected cash flow.
 
Just so you know, we have a read-only integration so we can't and won't make any changes to your accounts!

 

Bank transactions

We connect to your banks, credit cards, and digital banks (like Paypal) and bring all of your transactions to your books in real-time.
 
We use advanced machine-learning technology to categorize your transactions and if we can't recognize something, we'll ask you for help. You can see the uncategorized transactions in your P&L like this:
 
 
If you want to recategorize a transaction, you can do all of that from the Transactions page in our platform. Just click on the category and search for the correct description. You can also use the toggle to 'Mark as personal' so it doesn't impact your business results. See the screenshot below.
 

Your Profit & Loss Statement

Your P&L is ready for you between 1-3 working days after you connect your banks and apps and includes all of your business data, such as:

  • Income - Data from your sales channel data as well as any relevant income deposits we see in the bank.
  • COGS - By default, your COGS are based on all the inventory purchases we see in the bank (e.g., payments to vendors). If you want to track your COGS on a monthly basis based on the products actually sold and not based on purchases each month, just let us know (recommended if you hold an average inventory value of more than $5,000 or more than 5% of total sales). We'll set you up with our Inventory Tracker Tool. If not, we'll make this available at year-end so everything will be up to date for tax purposes.
  • Expenses - Based on transactions from your bank transactions fees and fees data from your sales channels.
  • Payroll - We connect to Gusto and integrate all of your salaries and wage expenses and payroll taxes into your books. If you use another payroll provider, just let us know.
 

Your Balance Sheet

No matter what accounting system you used before Finaloop and whether or not you already have a prepared balance sheet, we can help you get a handle on all of the assets, liabilities, and equity of your company.
 
We'll ask you the relevant questions to make sure we get you an up-to-date and accurate balance sheet to use for your business. 
 
Still not sure if an automated bookkeeping service is right for you? You can take this quiz to understand what is the best fit for you - DIY accounting (using Quickbooks or another software), a tech-based bookkeeping service like Finaloop, or using the services of a traditional bookkeeper.
 
If you have any questions about Finaloop, feel free to set up a call to learn more.
Recommended for You