Shopify is a platform that allows you to create an online store without having any technical knowledge. It’s an all-inclusive solution for eCommerce.
Shopify has several options to help you with accounting for your business. However, there are some things you need to know to get started. Once you are aware of all that is required you can decide whether you should do your accounting yourself or outsource it.
The Basics of Shopify Accounting
Shopify provides a number of different tools to help with your accounting. Once you have an account set up, there are a number of different services that they offer to help with your accounting needs.
The first service is that it provides all the basic features needed by small businesses such as inventory management and tax calculations which come included in its more expensive plans.
Shopify provides advanced invoicing apps from third-party sources. This service allows you to link your inventory with invoices so that when an item sells, it automatically updates the stock levels, you don’t need to do anything manually. While updating the stock report, it updates your sales report as well.
This saves you a lot of time when updating your records and also reduces the risk of something getting missed (which is very important if you are running an online business with multiple orders per day). Keeping track of these records can help you with accounting.
Shopify also offers an advanced reporting app. This allows your accountant to have all the data they need in order to do their job. This is especially useful if your business uses multiple currencies or if you do your own accounting and are not used to working with eCommerce platforms.
Accounting Software Integration
One of the best features of Shopify is that it integrates with Freshbooks, an online accounting software. This means that when you sell something on your store through Shopify, the sale automatically goes into your sales report on Freshbooks, saving you lots of time!
It also means that when people order items from your store they are automatically registered in the correct module in Freshbooks so you don’t have to manually import orders.
Shopify also integrates with QuickBooks, which is another accounting software. When you sell something on your store through Shopify, the sale automatically goes into your sales report on QuickBooks.
Freshbooks and Quickbook are two of the most popular Shopify integrations for accounting but there are others as well. You should choose what is best for you based on your budget and current needs. However, all this integration can be tedious and you may want to consider outsourcing your accounting instead and getting someone to monitor everything for you.
Master Accounting for Your Business
Mastering accounting for your business is essential for success. You need to know how much money that sales are bringing in and also whether or not you are making a profit for your business. The only way to do this is through proper accounting.
Fortunately, if you are using Shopify you do have several options to help you with accounting. However, you can get professional help to manage your E-commerce accounting, in this way you can ensure that your business is primed for success.