One of the keys to accurate bookkeeping is reconciling your accounts each month. But when it comes to Shopify, it can get a bit complicated. Reconciling Shopify transactions to QuickBooks Online can be tricky because not everything that shows up on the Shopify statement shows up in the bank. If you would like to see a demonstration of how to reconcile Shopify transactions to QuickBooks Online, watch my video linked below, or keep reading for an overview of what’s involved and key factors to consider.
Click on the link below to watch my video: Reconciling Shopify transactions to QuickBooks Online:
What’s involved in reconciling Shopify transactions to QuickBooks Online
When we look at Shopify sales and transactions, we want to pick up income, returns & refunds, and sales taxes. What we see in QuickBooks Online is generally the net deposits made into your bank account by the payment processor so it gets a bit tricky. We see one set of numbers in Shopify versus another set of numbers in QuickBooks. When those numbers don’t equal (and they often won’t) we have to know how to reconcile them to make them so we’re comparing apples to apples.
These numbers are affected by several factors including your payment processors, types of transactions, and whether you’re selling somewhere other than Shopify’s point of sale. If you have other apps integrated with Shopify, capturing fees is also a challenge. The graphic below shows an overview of the components involved in the Shopify to QuickBooks Online reconciliation, and lists the key factors to consider.
Now that we’ve covered an overview of what’s involved in reconciling Shopify transactions to QuickBooks Online, I encourage you to watch my linked video, where I show an example of how to take a day’s transactions in Shopify and match it up to what shows up in QuickBooks Online.
In my video I’ll show you:
- Which report to run in Shopify, so you can see the gross sales, discounts, and returns that make up your net sales, in addition to any taxes that were collected.
- I also show the report to run in Shopify that will show you the amount that was actually deposited in the bank account, and how to then identify fees and adjustments.
- After showing you the reports to run in Shopify, we’ll take a look at QuickBooks Online to see how the transaction shows up there.
Closing
I hope this helps you better understand how to reconcile Shopify transactions to QuickBooks Online. If you found this content helpful, make sure to subscribe to my YouTube channel: 5 minute bookkeeping, where you will find a dedicated playlist for e-commerce accounting for online sellers. If you have any questions about reconciling Shopify transactions to QuickBooks Online, or other Shopify accounting issues, drop me a comment so I can address it in a future article or video.
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.
