Complete Guide On Using Shopify With QuickBooks

Your business is growing, and Shopify is becoming a significant hub for you. 

Still, the admin takes up more of your time as you grow! 

You can save yourself time and hassle by integrating your Shopify account with your QuickBooks Online. 

Streamlining your accounting processes will make your life simpler, keep your customers happy, and your accountant calm.

We’ll show you how to integrate Shopify quickly with QuickBooks in our guide. 

By the end of this article, you’ll have all the knowledge to enjoy a seamless, fast online accounting experience with excellent reconciliation benefits!

How do you get extraordinary reconciliation? Use Reconcilely! It is a simple but powerful solution that will reconcile data between Shopify and QuickBooks Online in no time at all.

Now, let’s learn how to integrate Shopify with QuickBooks.

Why Should You Integrate Shopify With QuickBooks?

Suppose Shopify is the cornerstone of your business.

In that case, you are undoubtedly looking for ways to organize and process all the accounting data that keeps coming through. 

Integrating Shopify and QuickBooks will ensure that your orders are processed automatically, are accurate, and satisfy your customers.

It will also help you spot any dangers or flaws in your current business model. Adequate accounting will provide you with all the information to take your Shopify business to the next level.

When you integrate with the right software, you can automatically sync all your sales, order details, and inventory into QuickBooks. 

The integration will also give you access to full-order summaries. It allows you to take a snapshot of your account balances, let you record your fees, and help you track what you owe in taxes.

Your accounting team will also appreciate how easy it is to reconcile expenses, spending, and income. 

You’ll give them the option to organize payments accordingly and make reporting back easier. As we know, better reporting leads to better business decisions. 

Better business decisions lead to more profits, a smooth-running operation, and extra time.

But Wait, QuickBooks Vs. Xero: Which Should I Use With Shopify?

Currently, the battle for cloud accounting supremacy is between Xero and QuickBooks.

Both offer some fantastic options to businesses of all sizes, but each has different strengths and weaknesses. 

Both focus on small to mid-sized businesses, and both consistently get strong customer reviews. There is little to choose between, so here is a snapshot…

When to choose Xero:

  • You have a growing startup
  • You love minimalist user experiences
  • You’re outside of North America

When to Choose QuickBooks:

  • You want a lot of value at a low price point.
  • You need advanced reporting.
  • You’re located in the US.

If you’re interested in learning more about online accounting tools for Shopify, check out our Best Accounting Software For Shopify 2022 picks!

How To Integrate Shopify And QuickBooks In 4 Easy Steps

Integrating QuickBooks with your Shopify store is a pretty straightforward process. It should only take a few minutes to set up. 

If you haven’t already connected your apps, you should begin by connecting your apps to QuickBooks Connector. 

Once you’ve followed the instructions provided by the connection wizard, you should follow our step-by-step guide to help you integrate Shopify and QuickBooks.  

Step 1: Configure Shopify And QuickBooks To Share Data

During this setup, you’ll have a few options about how you want your Shopify and QuickBooks integration to work. 

Don’t worry. You will only need basic accounting knowledge to ensure that these details are tailored to your specific needs and practices. 

Here is a quick guide on how to easily integrate Shopify with QuickBooks.

First, you will need to set up your Synchronization Options before you can start to configure workflows. These synchronization options include:

  • Account timezone
  • Integration start date
  • Email sync report options

Next, you will be given various workflows. Workflows are reminders for people to do things at certain times ( atypical if this, then that scenario). 

This page will show you optional workflows here, which serve as an example of what they do, such as:

  • Sales from Shopify will create an invoice in QuickBooks Online.
  • Payouts from Shopify will be sent as deposits in QuickBooks Online.
  • Stock level updates from QuickBooks Online will be sent to Shopify. 

Step 2: Set Up Products And Advanced Options

Next, you need to set up your products. Select Default Products and Advanced Options, and from here, you will need to set up the following details:

  • Order Number Prefix: This is a default prefix that will be added to all orders retrieved by your Shopify account.
  • Assign Sales to Class/Assign Sales to Location: This is a unique function of QuickBooks and will allow you to set up separate locations within your company file.
  • Assign Sales: For most accounting systems, you will need to set up a customer file to assign a sale to. QuickBooks has created options that allow you to assign a sale to either an Original Customer, Customers Organization, or an Online Generic Customer. 
  • Automatic Invoices: This allows you to disregard Shopify order numbers entirely and use the sequential numbering convention that your internal accounting team uses.
  • Discount Product: Specified Discount Items allow you to track sales on “Sale Items separately.”
  • Use Shipping Item: If you charge shipping on items, you can specify what line item is assigned to these charges. 
  • DueDate Offset: The Due Date type will be calculated using the transaction date, the due date offset and the type specified. 
  • Allow Credit Card Payments: This allows transactions on Credit Cards.

You can select how you would like to link your products to your QuickBooks Online products with options including SKU, Name, and Note.

You can also automate the creation of new items in QuickBooks from Shopify. By selecting the box “Create New Items in QuickBooks Online” setting.

Step 3: Set Up Tax Options

Your next step is to go to the tax configuration page and set up your tax options. Check out our Does Shopify Collect Sales Tax guide if you don’t know the essential details of your sales taxes.

For each tax created in Shopify, you must select the corresponding tax code in QuickBooks Online. Doing this will ensure that your taxes correspond between the two software platforms.

Step 4: Set Up Payments And Finalize

Next, head to “Send Payments from Shopify to QuickBooks Online,”. 

Here you will be able to choose if you would like the payment date from Shopify to be registered against your sales in QuickBooks.

You can also track different payment methods through the Advanced Options link, like PayPal or Shopify Payments.

If you aren’t familiar with Shopify payment apps, read our ultimate guide to the 4 best Shopify payment apps and services

By offering suitable payment options to your customers, you can improve the user experience and make more money!

Finally, you should create a fallback account. By using “Create Credit Memos in QuickBooks Online” you can assign a fallback account from which you can refund any payments. 

You can also assign a Refund Number Prefix to track these easily.

You are also able to sync Shopify fees that will fall under expenses in QuickBooks Online - please make sure that you configure these according to the requirements of your region (US, Canada, Australia, UK, and other regions)

While this seems a little time-consuming, the effort and energy saved in the long run will make it all worthwhile. 

Now that you’ve successfully integrated Shopify and QuickBooks, it’s time to learn how to make your accounting even more effortless.

 Let’s look at what a reconciliation app, such as Reconcilely, can do for your online store.

So What Does Reconcilely Do For My Online Store?

At Reconcilely, we reconcile your Shopify account with your QuickBooks software to allow you to focus on the aspects of your business that matter. 

Instead of manually trying to reconcile amounts, our powerful software will automatically reconcile transactions, keeping you in the know. 

We eliminate time-consuming processes that distract from the day-to-day running of your business, enabling you to turn your attention toward your customers, products, and growth.

Reconcilely will make your Shopify accounting quick and easy. It’s a must-have solution for the busy Shopify store keeper who aims to grow their online business quickly.

Partner With The Best Reconciliation App For Shopify And QuickBooks

Having a partner that you can turn to, such as Reconcilely, means that you can rest assured that your Shopify and QuickBooks integration will be maximizing its potential. 

With a solid integration and automatic reconciliation, you will be able to ensure that your reporting, invoicing, ordering, and inventory tracking are all accurate. 

You’ll find that all the information you need to run your business effectively is at your fingertips. Grab a free trial today and level up your accounting game.

Final Thoughts

When you follow our step-by-step guide, you’ll find that it’s pretty quick and easy to integrate Shopify with QuickBooks. 

To take your business to the next level, install a plugin, such as Reconcilely, to automate your reconciliation work. 

You’ll always know what’s happening with your business, enabling you to make better decisions and effortlessly grow your online business.

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