Shopify is one of the largest e-commerce platforms. If you run your online business using this technology, you will benefit from understanding how its integration with QuickBooks accounting software can ease financial tracking and accounting processes within your business.
It can be overwhelming for small businesses to juggle operations and remain compliant with GAAP and other regulatory requirements. But, the right tools and integrations can help you stay abreast of all areas of your business.
How Shopify and QuickBooks integrations streamline operations
As a small business owner, managing the administrative side of your business while driving sales can be challenging. That’s why it’s essential to have the right tools in place to help you create easier processes and make better-informed decisions.
QuickBooks is the accounting software that small businesses use to track and manage financial transactions. Integrating your Shopify e-commerce platform with this accounting software can help to improve the efficiency of your business operations and processes. We take a look at some of the ways in which your e-commerce business can benefit from the integration.
1. Automatic inventory updates
Given the fast-moving pace of e-commerce purchases, your business requires software that can keep up in terms of inventory tracking. In the e-commerce industry, returns and exchanges are part of your daily operations and you require a thorough system to adequately track and manage this.
Poor inventory management not only threatens to bring operations to a halt, but puts your brand reputation at risk too. Integrating Shopify and QuickBooks can help you manage inventory more efficiently, as the software keeps track of inventory levels and updates data within your accounting software each time a sale or return takes place on Shopify. This ensures that your inventory numbers are accurate and that you can manage supplier expectations and minimize the possible wastage of stock (especially for businesses that sell perishables).
2. Effective financial reporting
Shopify and QuickBooks integrations combine direct sales data from your Shopify account with other transactions taking place in your business. This allows you to get a holistic and accurate view of your financial position. Not sure of the course of action to follow to take your business to the next level? The sales, expenses and profit reports you have access to in QuickBooks will hand you the information you need to take informed decisions. It will also help give you a clear view of the potential risks for your business.
3. Aids accurate tax submissions
By integrating Shopify and QuickBooks, the financial processes within your business become automated. With business transactions being recorded on your financial records as they happen, the risk of errors is substantially reduced while the tax preparation becomes more manageable too. Not only are you assured of data accuracy when filing your taxes, but integrating Shopify and QuickBooks simplifies the tax preparation process by automatically calculating tax liability reports and generating 1099 forms if your business is liable to submit taxes for independent contractors.
Accurate financial reporting is beneficial for the accurate upkeep of your accounts receivable and accounts payable records which significantly impacts business decisions and growth. Shopify and QuickBooks integrations help small business owners get a better handle on their financial reporting which frees them up to focus on implementing their business growth plan. The integration also offers comprehensive reporting abilities that simplify tax preparation and makes important and up-to-date data readily available to your business. Taking your business to the next level will require you to look into the numbers and having access to reliable data makes that process so much easier.
E-commerce accountants at Fusion CPA strive to help businesses manage tax liabilities and aid Shopify sellers with tax planning, and other accounting services. We provide a free accounting diagnostic assessment of your business and help with software integrations that can benefit your business. Schedule a discovery call to learn more about QuickBooks, Shopify, and other integrations to benefit your business.
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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
