Why bookkeeping is essential for your shopify business?

Operating an e-commerce store comes with a variety of bookkeeping complexities. Whether your store is a small business or a big one, there will be challenges. By understanding those key points and how they affect your books and financial statements, you can make the best decision about how to handle your e-commerce bookkeeping and find the bookkeeping software or service that’s right for your business.

Undoubtedly, taking the step to open your own business is exciting, regardless of the size or if it’s online or offline. For many business owners, that initial excitement of launching a company doesn’t seem to dwindle. Especially when you begin making sales on your Shopify store.

Shopify is an excellent platform to generate sales, but it’s also highly competitive. The latest Shopify Figures, as of February 2020 was 1,000,000 global sellers. Yet, there is one vital element that is often forgotten and underestimated, which can also ensure your success, and that’s bookkeeping.

Bookkeeping as intimidating and dull as it may seem is something that all business owners, particularly Shopify sellers need to succeed.

Contrary to the common misconception, you still need to have a basic understanding of bookkeeping for Shopify, even if you opt to outsource to an accountancy firm (which, we’ll be talking about later). Now, you have already taken a huge step in launching your e-commerce store. Also, we are sure that you’ve experienced the highs, the middle where nothing seems to happen as well as the lows.

Why is bookkeeping for Shopify important?

Now, it may be tempting to leave your fishes (in other words your sales) in a safe place until it’s time to submit your taxes. Our point is, yes the easy option is to store your invoices/receipts and pass them to your accountant. It’s very tempting, but having an understanding of your financial management, even if you outsource is crucial if you want to continue to grow. Considering the vastly competitive e-commerce market in general, not just Shopify, you need to ensure that your hard work doesn’t go to waste.

Therefore, if you want to continue growing and expanding your business, it is essential that you understand how to track, manage and maintain your finances accurately. Since improper and inaccurate management of your finances can hinder your success, and in some cases result in your company failing. In fact, research shows that 58% of new start-ups fail[ after the first four years because they struggle in finance management.

So, if you don’t want to become part of this statistic, keep reading. Don’t worry if you feel confused about how you should be bookkeeping for Spotify! As this blog will hopefully provide you with some clarity on where you need to start accounting for Shopify, along with a few helpful online accountancy options.

What’s Included in Shopify Bookkeeping Services:

• Merchant Fees
• Third-Party Payment Processors
• Inventory Management
• Alternative Sales
• Multiple Currencies and Foreign Sales
• Shipping
• Sales Tax

Best accounting software for your Shopify store

Choosing the best accounting software for your Shopify store is not so easy, but it’s a solution to spend time on. Running an e-commerce business on the Shopify platform is fun. Even its problems can be strangely interesting. But there is one thing that bookkeeping doesn’t like. A familiar feeling for any entrepreneur. This is the most boring side of the business. And quite cumbersome, if the owner has several shops.

• Quickbooks
• Freshbooks
• Xero
• Zoho Books
• SimplyCost
• Wave Apps

Well, you can try the above tools and decide on the appropriate for a particular business. Do I need a developer to configure integration with Shopify? It depends solely on the business. If the integration of the Shopify store with accounting software is difficult and difficult to fix, then help is definitely needed.

How to Record Shopify Sales and Fees in QuickBooks Online?

Shopify is a popular platform for selling online. But bookkeeping for Shopify presents some unique challenges. The biggest issue is that customers can pay in a variety of ways, and those payment methods deposit to your bank differently and have different fees. So in this post, I'll share best practices for how to record Shopify sales and fees in QuickBooks Online.

• Invoicing
• payment statement
• account management from vendors and suppliers
• cost tracking
• inventory

Why choose us?

At Rayvat Accounting, we have a team of expert bookkeepers using unique tools who can handle the most difficult e-commerce bookkeeping situations. If you want to keep better books, try Rayvat.

We are Top Rated Bookkeeping Experts with 12+ years of experience.

Our professional ecommerce bookkeepers and accountants enable dropshipping, shopify, woocommerce & amazon businesses owners to focus on running their businesses smoothly while we take of your books and manage them with extreme care.

Our accurate and cost-effective online bookkeeping solutions can help you manage your books starting just at $10/hr with no hidden costs.

Kindly contact us for more details and specific quote.