Shopify and QuickBooks Online integrations: 3 tips to avoid costly mistakes
You may already know that integrating your Shopify store with QuickBooks Online can eliminate a lot of manual processes, but you might not know that there are some hidden dangers to beware of. Before you attempt a successful integration, it's important to know about these potentially costly mistakes and learn how to avoid them. At Mavency we have helped many Shopify sellers set up their Shopify and QuickBooks Online integrations the right way and we have some expert tips that can help you avoid common pitfalls. Watch the video linked below or keep reading to hear about Shopify and QuickBooks Online integrations: 3 tips to avoid costly mistakes.
Tip #1 - Beware of free app integrations
Free integration apps can seem very appealing, especially if you're just getting started with your Shopify store. The problem is that most apps will generally do a giant data dump into your QuickBooks file. At Mavency, we have worked with clients who chose a free integration only to find out that the app has sent thousands of transactions to their QuickBooks file with no way of reconciling all of those individual transactions to net amounts deposited from their payment processors. Remember, you get what you pay for, so beware of free app integrations.
Tip #2 - Beware of the data dump
Some integration apps provide the option to send detailed transactions to QuickBooks Online. This means that each individual sale will be recorded as a separate transaction in QuickBooks. This generally causes two problems. First of all, too many transactions will end up cluttering your books, and second, if you're using multiple payment processors, there's not a streamlined way to reconcile net deposits received from your payment processors to hundreds or even thousands of transactions in your QuickBooks. This will lead to a lot of extra manual work that you don't have time to do. Instead, you can use apps that send summarized transactions into QuickBooks Online. Our favorite app is A2X. Find a link and a discount code to get you started in the closing and resources section below.
Tip #3 - Beware of the limitations with automation
It's essential to have realistic expectations when it comes to automating your bookkeeping. While automation can be great for streamlining tasks, it does not eliminate the important role of managing and reconciling your books. That includes reconciling app transactions, reviewing and reconciling payment processor clearing accounts, preparing bank reconciliations, and more. No amount of automation will eliminate these fundamental financial tasks.
Closing and Resources
That wraps up our look at Shopify and QuickBooks Online integrations: 3 tips to avoid costly mistakes. For more resources on Shopify bookkeeping and financial management, click here to sign up for our free Shopify Bookkeeping Blueprint. As mentioned above, our favorite app to use to integrate Shopify with QuickBooks Online is A2X . If you’d like to try out A2X you can use the following discount code at checkout to get 20% off your first 6 months: A2XMAVENCY. If you need some help with setting up your Shopify and QuickBooks Online integration and are ready to work with a trusted and reliable team of Shopify bookkeeping pros, you can use this link to learn more about Mavency and see whether we'd be a good fit for working together. For additional support, come join my Facebook community where you can connect with other Shopify sellers and professional bookkeepers online. If you want to continue learning more about Shopify bookkeeping, we encourage you to explore our Mavency YouTube channel as well, where we continue to add new content for e-commerce sellers. Till next time, happy selling!