Five Warning Signs You're Mishandling Shopify Bookkeeping in QuickBooks Onlin

Are you a Shopify seller utilizing QuickBooks Online to streamline your financial systems? Hi, I'm Veronica Wask, and in this article, I'll guide you through the crucial aspects of Shopify bookkeeping and highlight the five warning signs that indicate you might not be handling it correctly in QuickBooks Online.

1. Net Deposits from Payment Processors

If you're manually recording all your Shopify and payment processor deposits as income in QuickBooks, you might be missing vital details. Your Shopify finances likely include various components like income returns, refunds, sales taxes, shipping income, and gift card transactions. To accurately reflect your profitability, ensure these items are individually recorded on both your profit and loss statement and balance sheet.

2. Integrations Gone Wrong

For those leveraging integrator apps, be cautious of detailed transactions cluttering your books. Opt for an integrator app that summarizes transactions, providing a more streamlined approach to reconciling sales with deposits from payment processors. This prevents overwhelming your QuickBooks with unnecessary individual sales receipts.

3. Duplicated Income

If you're using integrator apps, be wary of duplicating income by recording amounts from payment processors in both the app and QuickBooks bank feeds. Establish a clear workflow to avoid duplication, often achieved through clearing accounts. These accounts help reconcile Shopify sales with payment processor deposits, ensuring accurate financial records.

4. Clearing Account Balances That Keep Growing

Growing clearing account balances may stem from unresolved issues, such as duplicated income. Ensure a robust workflow to offset deposits against clearing account balances and include payment processor fees. This prevents discrepancies and provides a clearer financial picture.

5. Inventory and Cost of Goods Sold Challenges

Maintaining accurate inventory balances and cost of goods sold (COGS) is crucial for a true understanding of profitability. Identify different transaction categories, manage landed costs effectively, and use spreadsheets or inventory management systems to calculate accurate COGS. Inaccurate inventory balances can lead to fluctuating COGS, hindering your ability to gauge profitability.

Seeking Professional Guidance

Recognizing these issues is the first step, but resolving them efficiently requires expertise. Consider working with an experienced Shopify bookkeeping professional who understands the intricacies of sales channels, payment processors, clearing accounts, and inventory. Their guidance can help diagnose issues, clean up your books, and set you on the right path for continued success.

If you've encountered any of these problems or need assistance, share your experiences in the comments below. For a trusted Shopify accounting professional, check the description for more information on my services. Subscribe for more insightful content, and explore my free resources, including the Shopify Bookkeeping Blueprint and access to my Facebook Community.

Are you ready to enhance your Shopify bookkeeping? Let's work together to ensure your financial systems are organized and efficient. I look forward to helping you on your journey. Subscribe, ring the bell, and stay tuned for more valuable insights. Until next time!