Since Shopify maintains a balance of funds on their platform for your shop, they act like any other bank account for your business. Once you’ve completed that, you'll be redirected back to Greenback where an initial sync will complete. In the first year of my small business, I invested nearly $3,000 of my own money. Make sure that you are keeping track of this investment and accounting for it in an âOwnerâs Capitalâ account. Later on, once you are in the black you can take money back out of this account as an ownerâs draw. Select the bank/asset account “Shopify Shop Funds” that we already set up in Step 2. If you've connected QuickBooks, you can set your preferences when exporting your data. Before setting up any bookkeeping system, you should become familiar with all the tax forms that you are responsible for filing. These forms should be the basis for your Chart of Accounts, and informs what you need to be tracking to be compliant. Most new Shopify store owners are single-owner LLCs, which for tax purposes is treated like a Sole Proprietor. For this type of business, you are going to want to get real familiar with the Schedule C. If you are selling physical goods, you also need to deal with paying sales tax. Before you have to do it for the first time, get a hold of the sales tax form for your state (in many places this is an online form).  Again, this tax form will give you a good idea for what accounts you need to set up in your bookkeeping system. I need a book keeper to do initial set up of my QuickBooks accounts, create rules/automations, and successfully integrate my Shopify data. In the beginning, when cash is tight and you arenât making many sales, it might make sense to do your own bookkeeping. As your business grows, however, there becomes a point when your time is better spent focusing on strategic management, and outsourcing tasks (including bookkeeping) makes sense. Additionally, if youâre just not a numbers kind of person, or you donât have any kind of accounting experience, then it may make sense to get help from a professional from Day 1. One of the biggest reasons small businesses fail is because they don’t take their financial management seriously. If you want to be successful in the long run, make sure you make clean books a priority. Sales Toll Free: 833.991.1234 (USA Only), Step 1: Connect Shopify and QuickBooks to Greenback, Step 3: Add an Expense Account in QuickBooks, Step 7: Reconciling Payouts and Handling Deposits on Your Bank Feed, How to Customize Your Accounting Data Exports. So let's go through an example of one to show you how it works. Some businesses will account for some of these as a "Cost of Goods Sold (COGS)" or "Cost of Sales (COS)", but most accounting professionals we surveyed recommended that they get treated as a standard operating expense. Of critical importance is accounting for your inventory and cost of good sold (COGS). So you'll only need to export a few different types of transactions (e.g. if you have any. For the Customer field, we haven't done any exports yet and the actual Shopify customer is not on your existing customer list yet, so let’s add Shopify as a new customer eg: “Add Shopify-Sales”. Click Next. Income Statement Accounts Chart of Accounts. Payouts from Shopify are just transfers of money from one account to another too. Greenback auto-fetches your sales, refunds, and payouts from Shopify and syncs them to QuickBooks. E-commerce can sometimes make for tricky accounting, when compared to a service business, for example.