April 5, 2020
Shopify and QuickBooks Online integration review

Shopify and QuickBooks Online integration review

Hey everyone. This is Veronica Wasek, with
Five Minute Bookkeeping. And in this video, I’m going to talk about Shopify to QuickBooks Online integrations and do a brief review. (bright music) Shopify to QuickBooks Online integrations. There’s a lot to think about. And this is an area where I see most of my e-commerce clients struggle with because they’re trying
to find an integration, at least something that’s
easy to bring data over from Shopify into QuickBooks
but unfortunately, in many cases it just
causes more problems. So let’s go ahead and take a look first at some of the things that
you need to think about in integrating Shopify
with QuickBooks Online and then we’ll talk about
some integration apps. In the previous video, I
had talked to you about reconciling Shopify sales
and QuickBooks Online. And the main point I was making was that on the Shopify side, you have income, you have other components and additions and deductions to income, whether it’s returns and
refunds, sales and taxes. But on the QuickBooks side, what we see is amounts
being received net of fees. And they are listed and
shown by payment process or payment gateway. So you might see payments
received from Shopify Payments, PayPal, Amazon as well as
any fees that are deducted from those deposits and
also any other payments that you receive from
your payment processors. So it does make things tricky in being able to reconcile that. So when we’re looking at
then Shopify integrations with QuickBooks Online,
there’s some complexities that we have to keep in mind. And here are the things
that I don’t recommend and the things that I do recommend. So let’s go ahead and take a look at that. And you might use this
in making a decision as to which app is the best fit for you. So number one, for the features
that I don’t recommend, is bringing over detailed transactions into QuickBooks Online. If you’re a high-volume seller, bringing over the details into
QBO is just not necessary. That’s just a lot of data that’s cluttering up your database. It will slow things down eventually so there’s no need to do that. So if you’re a low volume seller, then you might do that in the beginning but as you grow and as
you have more volume, you need to be looking for an app that brings over summarized
transactions into QuickBooks. Next is the fees and
deductions are not broken out. So if you have an app that
is not breaking out sales, refunds, returns, sales taxes
and any other deductions, then it’s not a good integration. Next, there’s no reconciliation
of amounts received. As I’d said before, you
have your sales amounts in Shopify but then you
have the amounts received coming into QuickBooks
by payment processor. And if there’s no reconciliation
between the amounts in Shopify and the
amounts that you receive, then it’s just going to add more work. Next, is what I call
a bad account mapping. So basically even though you can bring in those transactions from Shopify, you have to be able to tell that app where is it going into QuickBooks and you have to be able to
have some way to manage that. What I see most of the time
with the e-commerce clients that I work with, the Shopify
clients that I work with, is that they don’t
manage that integration, that account mapping between
Shopify and QuickBooks and then transactions just
go into the wrong accounts and it’s messing up the books. And finally, an inventory sync. I don’t recommend trying to bring over detailed inventory data from
Shopify into QuickBooks. And the reason is that I just don’t think it’s
a sustainable process. QuickBooks Online, as far as its inventory
functionality, is quite limited. And it’s not the best
place to manage inventory. What I do recommend if
you get to the point where you do need to manage inventory and especially multi-channel inventory, is to do that in a separate
cloud inventory app. And there are ways to update inventory totals into QuickBooks. You don’t have to bring in
all the data to do that. Now, on this side as far
as the things that yes, we want this integration to do. So I said before, summarized
totals into QuickBooks, breaking out fees and deductions, reconciliation of amounts received. That’s a big one of, again,
what’s happening in Shopify and what am I receiving in QuickBooks, they’re not the same amounts and those need to be reconciled. And then having amounts
mapped to the correct accounts in QuickBooks Online. Let’s take a look at some
apps that integrate Shopify and QBO and take a look
and see what they do. Bold is one of the most popular
apps that Shopify users use when integrating QuickBooks
Online and Shopify. But it does have its limitations. And even though it does have
an automatic daily import, it does bring over full order details, which as I said before,
we don’t necessarily want if you’re a high-volume seller. And it also will sync over
your products into QuickBooks and again, I had said, I don’t recommend trying to track inventory at a detailed level in QuickBooks Online. Next option is A2X. And A2X is a really good option
for doing the integration. And the reason is because it brings over summarized totals into QuickBooks. It actually gives you the option
but I definitely recommend bringing in just summarized data and also it reconciles
perfectly, to the penny, the amounts received
from Shopify Payments. There’s a drawback though, and you would have that with any app, is that it will reconcile Shopify Payments but it doesn’t reconcile for you any other amounts received
from payment processors. So for example, if you’re
using Amazon payments, then you would have to go
into Amazon Central account to get the amounts
received and fees deducted in order to be able to get
the correct amount recorded in QuickBooks and be able to
reconcile back to Shopify. Next is Webgility. And Webgility is a more robust solution and in fact it’s not just connecting QuickBooks and Shopify. It connects several other
channels together to QuickBooks. So if you’re a multi-channel seller, if you’re selling online, on your website, on Amazon, on Shopify, this might be a more
robust solution for you. They do automatically post
and track and sync all orders, expenses, fees and shipping costs. You have the option of
posting summarized data whether on a monthly,
weekly or daily basis. And you have the ability
to select by store or by groups of orders
or to post as a batch. They do provide some tax compliance. I’m not sure what that looks like but they do have plans
starting from only $39 a month. So even though it is a robust solution, they do have some, what I would say, reasonably-priced plans to start out. Next is FlowLink and FlowLink
is an even more robust of app for connecting again, not just Shopify and QuickBooks Online, it connects a whole lot of other apps. And not just multi channels
but also salesforce, MailChimp, and several others as well. FlowLink is attempting to
really streamline and automate workflows between different solutions. They are a more robust
solution and their plans start at $100 a month. The app that I recommend for integrating Shopify and QuickBooks Online is A2X. And it’s for the reasons
that I gave you before. You have the option of
bringing in summarized totals. It doesn’t try to bring in any
detailed inventory amounts. It does have a reconciliation between Shopify and Shopify Payments. They have great support, a great team at A2X and make sure that you check
the description box below. I have a discount code
that you can use for A2X. So there you have it. My quick review of integrations between Shopify and QuickBooks Online. I’m Veronica Wasek, with
Five Minute Bookkeeping. Make sure that you check
the description box below for my free resources and the link to join
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2 thoughts on “Shopify and QuickBooks Online integration review

  1. Perfect timing, Veronica! My client is ramping up for the holidays with new items in Shopify and the Shopify provided integration just doesn't cut it. Thanks so much!

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