How to Reconcile your Profit & Loss Report to your Shopify 1099, Bookkeeping Records tie out to 1099

Even when you have faithfully been doing your bookkeeping all year long, when that 1099-K arrives from Shopify you may be surprised to see that your Profit & Loss report does not agree to the 1099-K from Shopify at first glance. Let me walk you through how the 1099-K amount is calculated, how it ties to your bookkeeping records, and what to do if there is a difference.

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0:00 Tie out to your Shopify 1099-K
1:00 Only for Shopify Payments
1:30 Initial Look at 1099-K
2:05 Before Refunds & Includes Sales Tax
2:25 Calculation
5:00 Small difference
7:30 Journal Entry to fix difference

This video is for informational purposes only and does not constitute tax or accounting advice.