Over a million businesses have made use of Shopify's site builder and point-of-sale services. It's no surprise that it now has a reputation of being an e-commerce powerhouse. Aside from the incredibly efficient business management tools, the platform itself is also quite affordable.
That said, there are areas where even the best of the best business software will fall short. Accounting for Shopify involves the use of specific accounting software. That covers a multitude of needs, such as running reports, tracking income and expenses, sending and receiving payments, preparing for tax time, and more.
Of course, prior to taking on any software, a business has to be established. Make sure you've registered, have a business bank account open, and have your business records in order. Doing so will ensure you can make the best use of accounting software once you’ve selected the appropriate one.
It should be noted from the get-go that every single accounting software option listed below is cloud-based. There's a huge benefit in this, as it allows data to be accessed conveniently. No matter where you are or what time it is, as long as your device (smartphone, tablet, laptop, etc) is connected to the internet, you will be able to access your data.
Another thing to note: Most accounting software isn't equipped for Shopify integration. Chances are the Shopify App Store has an app connector that can help resolve that. Otherwise, look into apps like A2X and Zapier for the integration set up.
FreshBooks works great as accounting software for freelancers, microbusinesses, and small business owners on Shopify. The platform has a good grasp on all the basics: bank reconciliation, journal entries, and even a chart of accounts. It supports over 170 different currencies, which is great for international ecommerce businesses. If there are services being offered, there are unlimited estimates, invoices, time tracking, and mileage tracking. There are apps for both iOS and Android users.
NetSuite is an enterprise resource planning (ERP) system which lets the user oversee most options easily. It makes the automation of key areas possible, such as financial management. Further optimization is possible through its customer, billing, order, and inventory management features. There are custom accounting tools on offer here at the enterprise level. Control can be improved over fixed asset management, accounts receivable and accounts payable. NetSuite also has a tax engine which will handle both domestic and international sales tax compliance as needed.
This accounting software is free and allows for the management of multiple items: accounting, banking, purchases, reports end to end, and sales. It's aimed at small business owners and freelancers who accept credit card payments. All it takes is connecting your bank account then integrating Wave with Shopify. Receipts can be uploaded directly through a photo taken on your smartphone.
Shopify is an incredible platform for business, but it can't do it all. Accounting is another leg of that, which can be taken care of easily by cloud-based software. Consider using the likes of FreshBooks, NetSuite, and Wave. While all four have their own distinct advantages and disadvantages, your business may be more suited to one or another. Carefully consider your needs and consider consulting a Shopify accountant to make recommendations.
Looking for a Shopify accountant in Australia? Reach out to The ECommerce Accountant! We are business advisors for online stores & influencers.