How to Record your Shopify Store Sales and Fees in QuickBooks Online, Shopify Bookkeeping

Bookkeeping for Shopify Stores presents its own unique challenges. The biggest challenge being that customers can pay in a variety of ways, and those payment methods deposit to your bank differently and have different fees. The method I use to accurately record Shopify sales and fees each month relies on the Shopify Financial Summary and a monthly journal entry. In this video, I do my best to explain all the necessary steps to accurately recording your Shopify sales in QuickBooks Online each month. Whether you take sales via Shopify, Stripe, Afterpay or PayPal, this method will work for you. I don't use any apps or integrations with QuickBooks to record my Shopify income and expenses each month.

Make sure you have set up your chart of accounts first with this video:    • Shopify Store Owner's Customize your ...  

I'll be using QuickBooks Online Simple Start which you can find here: https://www.SmallBusinessSarah.com/qu...

That is my referral link because QuickBooks is the only program I use or recommend.

Open up your own Shopify Store and start selling (referral link): https://www.SmallBusinessSarah.com/sh...

This video is for information purposes only and does not constitute tax or legal advice.

0:00 Learn how to do Shopify bookkeeping
0:13 Challenges with Shopify
0:30 My method "Shopify Bank Method"
0:55 Inside Shopify (Analytics → Reports → Finances → Summary)
1:35 Finances Report
2:10 Why it’s hard to do Shopify bookkeeping in QBO on a per deposit basis
2:33 Shopify Bank Method (=amount available to be deposited from Shopify due to delay)
3:18 Why you need a good beginning balance from Shopify bank
3:59 How to get your beginning balance (Home → Payouts)
7:57 Introductory step for PayPal (Sales → Product & Services) and challenges you may face with Shopify if you use PayPal for more than 1 type of income
10:37 How to set PayPal sales to go to Shopify Bank
11:23 Bank Tab specifics for Shopify Bank
15:45 Refunds through PayPal in the Shopify bank feed and how to categorize them
17:03 Walkthrough Back to Shopify (Analytics → Reports → Finances)
19:40 How to find Shopify Transaction Fees
21:00 Collect Afterpay and Stripe Fees
23:00 First we need a Profit & Loss report for the month we’re entering to check if there is any income or refunds already recorded (prevent double-counting)
24:05 Journal entry
28:17 Back to the Profit & Loss for the month we entered to make the amounts match (numbers should agree with the Shopify report)
29:10 Time to compare the amounts with the Shopify Bank account and discuss what is happening with the various numbers