Reconcile Shopify Sales in QuickBooks Online

With the advent of technology, businesses are now building an online storefront. Wix, WooCommerce, Shopify, and Squarespace are some examples. But Shopify is the biggest giant of the eCommerce Software market in the US. Out of 4 million Shopify online stores, 2.5 Mn+ stores are in the US.  

Are you selling online on Shopify or planning to go online on Shopify? If you nodded yes, to any of the above, continue reading the blog. Stepping into Shopify means you will be selling and receiving payments for it in return. So how do you keep a tab of all the Shopify sales? The simple answer is bookkeeping. 

However, with the immense number of Shopify sales, tracking all sales manually is difficult. So many business owners install or outsource bookkeeping software like QuickBooks. Besides being cost and time effective, it offers multiple features to up your Bookkeeping. So if you integrate Shopify and QuickBooks, you can easily track down the details of each sale. 

Read here: 10 Reasons Why Outsourced Bookkeeping Can Increase Your Productivity

But how will you reconcile the Shopify sales in QuickBooks? It is possible via two methods of reconciliation- Automated and manual reconciliation. Before learning the reconciliation process, let’s understand the why.

Why should you reconcile Shopify Payments and QuickBooks?

Bookkeeping aims to keep your books balanced. Out of the multiple practices of Bookkeeping, periodic reconciliation is essential. Therefore, it becomes vital to reconcile payments from Shopify to QuickBooks. Moreover, it reduces the chances of errors of omission & entry, and you can also identify repetitive and wrong entries. Lastly, you always have the up-to-date information on payments in hand. 

How to reconcile Shopify Payments in QuickBooks? 

You can either reconcile via automated or manual methods. However, both ways have their requirements. For automatic reconciliation, QuickBook’s Baking feature is essential. On the other hand, in manual mode, you need to follow a categorization and review process. So before deciding upon one method, understand the details of each. Decide based on which methods’ information you have. 

Method 1: Automatic Reconciliation after Integration

Once you integrate Shopify with Quickbooks, it will auto-sync the information, including payments. With successful integration, you can go forward with the reconciliation process. Next, follow the following step within QuickBooks:

• Open QuickBooks Online and go to “All Sales.”
• Check all the payments synched in Shopify and QuickBooks.
• Open the payments added in QuickBooks.
• Compare the record of both applications in “Reports” and “Finances.”
• In the next step, visit “Banking.”
• Choose the bank account containing Shopify’s payments. 
• Lastly, hit the button “Add.”

Method 2: Manually via QuickBooks Online Settings

To reconcile Shopify sales manually in QuickBooks Online, you need to find all the transactions of Shopify in your bank account. You can now categorise the entries whenever required and reconcile them till the difference is zero.

• Go to the Settings menu and select tools. 
• Select Reconcile; then, an account dropdown menu will appear.
• Choose a Checking account you wish to reconcile. 
• Now, in this account, your beginning balance will be visible. (Note: It should be similar to your bank statement).
• Mention the ‘Ending Balance’ and ‘Ending Date.’ 
• Finally, click on the ‘Start Reconciling’ button. 
• Now a page showing all your payments will appear; review and tally the values with your bank statement.
• Besides the payments, there will be checkboxes; tick the entry available in the bank statement and leave the rest. 
• Continue tallying the transactions until the absolute difference is zero. 
• Now hit ‘Finish Now’; in case of alteration, select ‘Edit Info.’
• Now, wait for a popup message reading Successful Reconciliation. 
• To print a Reconciliation report, you may select ‘View Reconciliation Report.’ 
• Lastly, select ‘Done’ after printing the report.
  

The above two detailed methods will help you reconcile the Shopify sales in QuickBooks. However, reconciling is one of the vital parts of keeping your books clean. Bookkeeping has evolved and now requires a certified bookkeeper to give you a competitive edge. If you are looking for a tech-savvy bookkeeper with analytical skills and hands-on experience in Bookkeeping, schedule a meeting with us now.