As a busy Shopify seller you are probably looking for ways to save time and simplify your bookkeeping. That may include looking through the Shopify apps to find the right one to connect your Shopify with QuickBooks Online. Beware! It’s important to choose carefully because not all integration apps are the same and using the wrong integration can cause a major mess in your books. How can you know the right integration to use? I’m here to help. Keep reading or watch my video linked below where I share what Shopify Sellers should know before integrating Shopify and QuickBooks Online.
Two ways to integrate Shopify and QuickBooks Online
To better understand your options, let’s take a look at two major ways to integrate Shopify and QuickBooks Online.
#1 – Bring detailed transactions into QuickBooks
The first way is to bring detailed transactions into QuickBooks. Most integration apps will record individual sales receipts or invoices for every sale that you make. That can be a problem because as your volume increases, your books become cluttered, and the performance of your QuickBooks file will slow down.
Shopify sellers also face a particular challenge because there’s not a workable process to reconcile individual sales receipts to net deposits received from payment processors. In other words, let’s say that you had 100 orders in day one and 200 orders the next day. That means that you would now have 300 individual sales receipts in your QuickBooks file. On day four, you receive a net deposit from Shopify. Well, how do you know how to apply a net deposit to hundreds of individual sales receipts? How do you know which sales receipts go with which deposit? It’s too time consuming to attempt to figure it out and to further complicate matters, if you have multiple payment processors, you would have net deposits from each payment processor and you would have no way of knowing which sales receipts go with the deposits that you received from your payment processors. Needless to say, I don’t recommend these type of integration apps.
#2 – Integrate Shopify and QuickBooks Online using A2X
The second way to integrate Shopify and QuickBooks Online is to use an app such as A2X to bring over summarized transactions into QuickBooks Online from Shopify. A2X records one summarized entry per day for each payment processor, and it also makes it easy to reconcile payments received from Shopify payments.
A2X is my go-to app for integrating Shopify and QuickBooks Online. If you’d like to learn more about A2X, I recommend watching my videos linked below.:
Click here to watch: Tour of A2X – QBO integration with Amazon and Shopify
Click here to watch: A2X: Tour of new Accounts & Taxes | Shopify integration with QBO
For other payment processors, you can use my clearing account method to record payouts against sales made for each payment processor. To learn more about this method, watch my video linked below:
Click here to watch: Why you should be using Clearing Accounts for your Shopify bookkeeping.
Closing
Now that I’ve shared what Shopify sellers should know before integrating Shopify with QuickBooks Online, I hope you have a better understanding of the type of integrations out there and why I recommend A2X. If you are ready to give A2X a try, you can get 20% off your first 6 months with A2X using this discount code: VM_20_6MON_2021.
If you need help setting up your Shopify to QuickBooks Online integration, my team and I specialize in helping Shopify sellers just like you to set up and streamline their Shopify to QuickBooks Online integrations with confidence. To learn more about my services, you can use this link to see how we might be able to work together.
I’d also love to share a few resources with you, like my YouTube channel and my free Shopify Bookkeeping Blueprint. You can also use the following link to learn about my online course, Shopify Bookkeeping Method, which is my step-by-step course showing you how to work on Shopify financials using QuickBooks Online and A2X. Finally, if you’d like to connect with other Shopify sellers and professional bookkeepers, come join my Facebook community. We’d love to see you there!
