The exceptional growth of E-commerce businesses has increased the tasks for business owners, just from listing products and generating revenue to running ads and more. Accounting tends to get neglected in the midst of these priorities. Managing sales from all platforms like Amazon, eBay, and Shopify for e-commerce accounting becomes a time-consuming task. User-friendly software solutions like QuickBooks help to simplify the accounting process.
E-commerce bookkeeping serves multiple purposes, including generating financial statements like balance sheets and income statements, creating reports for tax filing, ensuring compliance with state tax laws, facilitating decision-making, and tracking inventory in product-based businesses. While integrating data from bank accounts directly into QuickBooks helps analyze sales, it may lack certain details such as breakouts.
Among the available options of Quickbooks for e-commerce, such as QuickBooks Desktop, QuickBooks Online, and QuickBooks Commerce, Quickbooks Commerce emerges as a perfect choice due to its seamless integration with a variety of shopping platforms, such as Shopify, Amazon, and eBay. This integration not only improves the transfer of order details but also facilitates inventory management.
The integration process with QuickBooks Commerce for bookkeeping for e-commerce businesses can be done through a straightforward process explained below:
- Begin by signing up for QuickBooks Commerce on their official website.
- Provide necessary business details and opt for a suitable subscription plan.
- Input relevant information about the products your business offers and the available stock levels.
- Select the “settings” or “integration” section within QuickBooks Commerce.
- Select the e-commerce channel you wish to integrate, such as Amazon, Shopify, or eBay.
- During the integration process, sign in to your respective e-commerce channel accounts to facilitate the seamless transfer of data.
- Choose the date range from which you want to import data. Note that platforms like eBay and Amazon may limit data imports to the last 90 days.
- Add relevant financial account details, ensuring a comprehensive view of your financial transactions.
- If your business operates on multiple accounts for multiple channels, QuickBooks Commerce allows you to add multiple accounts for all channels.
- In the settings, payment mappings can be changed, for categorizing different payments, including advertising and subscription fees.
Once successfully integrated, QuickBooks Commerce provides a comprehensive overview through its commerce tab. This includes important metrics such as net revenue per channel, orders per channel, and insights into top-selling products. The detailed breakdown aids in understanding the performance of each channel, enabling informed decision-making.
The orders tab under the commerce section provides a centralized listing of all transactions. To ensure accuracy, regular audits of inventory levels are essential. This involves comparing suggested inventory levels within QuickBooks Commerce with the actual physical inventory.
Conclusion:
Thus, QuickBooks Commerce is a powerful tool for bookkeeping for e-commerce that helps to integrate data seamlessly from different channels and provides in-depth insights into how well the business is performing. Properly organizing data makes it easier to manage your cash flow. It’s important to link all your relevant financial accounts to Quickbooks such as bank accounts, debit cards, and credit cards to ensure your financial statements are accurate. Also, make sure to keep track of receipts for any cash transactions to have accurate records. Avoid mixing your business and personal accounts to maintain trustworthy financial reporting. Regularly checking the commerce overview and order tabs helps to make proper financial decisions.
