Are you ready to outsource the bookkeeping for your Shopify business, but you’re not really sure how to find a qualified bookkeeper? If you’ve been reading my articles and watching my videos, you know that Shopify accounting is complex. That’s why it’s so important to find the right bookkeeper. But did you know that there are different kinds of bookkeepers? Let’s go over the three most common types of bookkeepers and my tips for finding the right bookkeeper for your growing Shopify business. Keep reading or click the video below to find out about the 3 types of bookkeepers, and how to find the right one for your business.
Click on the video linked below to watch: Finding the right bookkeeper for your growing Shopify business
There are generally three types of bookkeepers: a basic bookkeeper, a specialist, and an advisor. Let’s go over each one.
The basic bookkeeper
The basic bookkeeper is focused on recording basic money-in/money-out transactions. They generally don’t have experience with Shopify and e-commerce accounting, so they’re more generalists. They tend to record sales exactly as they’re deposited in the bank accounts, so fees and deductions aren’t separated out.
Most basic bookkeepers don’t know how to track inventory, cost of goods sold, or sales taxes for e-commerce. They’re not familiar with integrations between QuickBooks and Shopify, and they’re not really focused on helping you streamline your financial processes.
The services that you might find providing this level of bookkeeping are Bench, Bark, Belay, QuickBooks Live, and others. This is also what you’ll often find from cheap independent bookkeepers. From a revenue perspective, this type of bookkeeper is generally a good fit for a business with under $200,000 in annual revenues and probably even under $100,000.
The specialist bookkeeper
The second type of bookkeeper is a specialist. The specialist is more focused on giving you clarity into your profits and really streamlining your processes. They generally do specialize in Shopify accounting and understand e-commerce. They will report the components of income, like deductions, refunds, returns, and fees and they’ll track inventory and cost of goods in the financials.
A specialist will also reconcile the payment processor deposits and clearing accounts. This is really important for Shopify sellers who need to reconcile between the amount sold and the amounts received from all of the different payment processors. They understand sales taxes, income taxes, and other complex issues and they have a proven method and tools for integrating Shopify and QuickBooks Online.
A specialist is generally a good fit for a business with over $200,000 in annual revenues.
The advisor
The third type of bookkeeper really goes beyond being a bookkeeper and is more of an advisor. The advisor proactively helps you grow and streamline your business. They are a Shopify specialist with a good understanding of streamlining operations, bringing in inventory management apps, managing multichannel, and integrating with QuickBooks.
Advisors focus on key performance indicators and financial dashboards, using the historical financial data to optimize and plan for the future. They also provide advisory and accountability sessions.
Generally, a business with over $500,000 in revenues will need the help of an advisor.
What to expect from your bookkeeper
Regardless of the type of bookkeeper that you work with, there are certain things you should expect from them in terms of expertise:
- Are they certified in QuickBooks Online? (If you’re using QBO)
- Are they an experienced bookkeeper or accountant?
- Are they specialized in Shopify accounting?
- Do they have a streamlined method for syncing Shopify and QuickBooks Online?
- Do they understand sales taxes?
- Do they understand how inventory and cost of goods sold should be tracked on the books?
You should also expect certain things from a bookkeeper when it comes to their business practices:
- Do they have the capacity to take you on as a client or are they already too busy and overwhelmed?
- Are they tech-savvy?
- Do they price their services using fixed pricing instead of hourly? (I highly recommend finding a bookkeeper with fixed pricing so you know exactly what you’re getting)
- Do they give you a clear agreement on the outcomes and deliverables that they will provide to you?
- Do they provide you a written service agreement and engagement letter?
- Are they responsive to you? Are they going to respond to you when you have a question or when you need something, or is it going to be days and weeks before you hear from them?
Closing
I hope this has helped you to gain a clearer understanding of the type of bookkeeper that you should be working with, and the questions you need to ask about their experience and business practices. Finding the right bookkeeper for your growing Shopify business can make a huge difference in your success, your profitability, and your stress levels. If you are ready to work with an experienced and reliable Shopify accounting pro, use this link to book a free discovery call with me, to see if we’d be a good fit for working together.
If this content is helping you, stay tuned for more Shopify bookkeeping tips, and subscribe to my YouTube channel: 5 Minute Bookkeeping, where you will find a dedicated playlist for e-commerce accounting for online sellers. Also, make sure to get a copy of my free Shopify Bookkeeping Blueprint – a guide to help you confidently set up and streamline your Shopify financials.
If you’re ready to work with a trusted and reliable Shopify accounting expert and want to learn more about my services, my firm VM Wasek specializes in e-commerce for Shopify, Amazon, and Walmart sellers. Click on this link to learn more about my services and see if my team is a good fit to help you elevate your e-commerce business and reach your goals.
