It might be fun to run a Shopify store, but if you don’t keep track of your money well, it’s easy to lose track of your costs and revenues. That’s when you need Shopify bookkeeping. Good bookkeeping lets you know exactly how your store is doing, helps you get ready for taxes, and provides you the confidence to grow your business.
A lot of people who sell on Shopify assume that bookkeeping is hard, but it can be easy and stress-free with the appropriate approach. If you want your online store to be successful in the long run, you need to keep good records, whether you’re just starting out or running a growing store.
Tools like PlugBooks make it easier by linking Shopify to accounting software and giving you up-to-date information about your finances.
👉 Keynotes to Remember:
- Bookkeeping prevents tax-time stress.
- It helps track profits, expenses, and cash flow.
- Essential for both small and large Shopify stores.
- Software like QuickBooks, Xero, or PlugBooks simplify the process.
- Even beginners can manage bookkeeping with the right guidance.
What is Shopify Bookkeeping and Why Does It Matter?
In short, bookkeeping is the act of keeping track of and managing your money transactions. For merchants on Shopify, this comprises sales, refunds, payouts, transaction fees, and costs.
(Learn more about how to connect Shopify with QuickBooks or Xero here).
You won’t know for sure if your store is making money without keeping track of your books.
Good bookkeeping isn’t just about numbers; it’s also about making better choices for your organization. You can find patterns, cut costs, and develop your Shopify shop faster if you know where your money is coming from and where it’s going.
How to Do Bookkeeping for a Shopify Store
If you’re not sure how to keep track of your Shopify store’s finances, it doesn’t have to be hard. Here is a simple breakdown:
- Keep track of everyday sales: Keep track of all your Shopify orders and payments.
- Keep track of returns and refunds because they affect your total income.
- Keep track of your expenses, such as shipping, marketing, software, and product costs.
- Match payouts: Make sure that the payments you get from Shopify match the deposits you make to your bank.
- Look over the reports every month: Look at your cash flow and income statement.
If you do this every time, you’ll prevent surprises later.
Best Bookkeeping Practices for Shopify Sellers
A good system is necessary for every successful Shopify seller. For Shopify retailers, these are the best ways to maintain track of their books:
- Keep track of your sales and expenses on a regular basis.
- Every week or month, check your accounts.
- Don’t mix up your company and personal spending.
- Keep all of your receipts and bills.
- Use programs like PlugBooks to make reports automatically.
These routines will help you keep your finances straight and stress-free.
Do I Need Bookkeeping Software for Shopify?
People often ask, “Do I need bookkeeping software for Shopify?” You might be able to get by with spreadsheets if your store is really small. But as soon as you start to grow, keeping track of your finances gets harder.
QuickBooks, Xero, and PlugBooks are examples of software that makes things a lot easier by automatically syncing sales, fees, and costs. This saves time, cuts down on mistakes, and gives you reports in real time to help you make better business decisions.
How Shopify Bookkeeping Helps with Taxes
One of the best things about keeping good records is that it makes it easier to file your taxes. If you group your sales and costs correctly, you can claim deductions and lower your taxable income.
You won’t have to rush to find receipts or repair mistakes when tax season comes around. Instead, you’ll have records that are already in order, which makes filing easy and stress-free. (For a detailed guide, check out our Shopify Tax resource.)
Easy Bookkeeping Tips for Shopify Beginners
Here are some simple bookkeeping recommendations for people who are new to running a Shopify store:
- Keep your personal and business bank accounts separate.
- Store a digital copy of every receipt.
- Keep track of your costs every day so you don’t go behind.
- Check reports every week to find cash flow problems early.
- Use technologies like PlugBooks to automate as much as you can.
These little things can save you a lot of time later.
Can QuickBooks or Xero Handle Shopify Bookkeeping?
Yes, many like using both QuickBooks and Xero for accounting. But the real question is whether QuickBooks or Xero can do a good job of keeping track of Shopify sales. Yes, but they often need to be integrated to work well together.
This is where PlugBooks stands out. PlugBooks integrates Shopify directly with QuickBooks and Xero, so you don’t have to switch between programs. It makes sure that your sales, fees, and expenses come in automatically, so you don’t have to enter them by hand.
How to Keep Track of Expenses in Shopify
Another thing that people often worry about is how to maintain track of their Shopify costs. Shopify keeps track of sales and payments, but it doesn’t automatically group all of your costs, including shipping, software, or advertising.
You need a system that keeps track of all your costs in order to see the whole picture of your profit. PlugBooks offers this by sending your costs directly to your bookkeeping software, which lets you see exactly how much you’re spending each month. (You can also explore our Shopify Sales Tracker to make expense tracking even simpler.)
Local and Professional Support – Shopify Bookkeeping Near Me
When merchants want help in person, they might look for Shopify bookkeeping near me. It’s not always required to hire a local bookkeeper, but it can help. A lot of professional bookkeepers now work online, so you may get help from experts no matter where you are.
PlugBooks does your bookkeeping for you, and if you need help, you can connect with specialists. This saves you time and money.
Do You Need a Dedicated Shopify Bookkeeper?
As your business expands, you might ask yourself, “Should I hire a Shopify bookkeeper?” It depends on how much work you have to do. If you are spending too much time on bookkeeping
or making mistakes, it might be worth it to hire a bookkeeper.
But many sellers do well with automation systems like PlugBooks, which means they don’t require full-time help with their books as much.
How PlugBooks Helps Shopify Store Owners Keep Their Books
This is why people who sell on Shopify choose PlugBooks:
- Tracks sales on Shopify automatically.
- Works well with QuickBooks and Xero.
- Keep track of costs in real time.
- Automated reconciliation cuts down on mistakes.
- Gives you precise financial reports so you may make better choices.
You don’t have to worry about untidy spreadsheets anymore since PlugBooks lets you focus on expanding your Shopify store.
Mostly Asking Questions
1. What’s the easiest way to start bookkeeping for Shopify?
If you’re just starting, begin by tracking your sales and expenses daily. Once you get comfortable, use a tool like PlugBooks to automate and save time.
2. Can I manage bookkeeping Shopify myself without hiring an accountant?
Yes, you can. Many small sellers handle their own bookkeeping with the help of software. As your store grows, you may consider professional support.
3. Which software works best for bookkeeping Shopify?
The most common choices are QuickBooks, Xero, and PlugBooks. PlugBooks is built specifically for Shopify sellers, making it the easiest option.
4. How often should I update my bookkeeping shopify?
It’s best to stay consistent. Weekly updates work well for most sellers, but daily tracking gives you the most accurate picture of your business.
5. What’s the difference between a Shopify bookkeeper and accounting software?
A bookkeeper handles your records manually, while software automates most of the process. Many sellers use a mix of both depending on their needs.
6. How does PlugBooks make bookkeeping for Shopify easier?
PlugBooks connects your Shopify store directly with QuickBooks or Xero. It automatically syncs sales, expenses, and fees so you always have real-time reports.
Final Thoughts
It may seem hard to maintain track of your books, but if you have the appropriate system, it will be easy to do as part of running your Shopify store. Keeping correct records will help you make smarter choices and expand your business, whether you’re keeping track of sales or getting ready for taxes.
Instead of worrying about spreadsheets, use PlugBooks. It’s a smart, automated way to link Shopify with QuickBooks and Xero. PlugBooks can help you save time, make fewer mistakes, and finally receive the information you need to grow your online store.