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Xero and Shopify Link: Save Time and Money for Accounting

If you're running an eCommerce store, your accounting and bookkeeping duties have taken a second seat. It’s expected since you have to manage several facets of your business at once. Thankfully, this is why accounting software can help lessen your load.

Xero, a cloud accounting tool, and Shopify, an e-commerce platform, are similar. They have the potential to make several tedious and time-consuming activities unnecessary. With it, you can streamline your business’ operations without breaking a sweat.

Combining Shopify and Xero

Shopify is a widely used hosted e-commerce platform that simplifies the process of opening an online store for small businesses. You can keep tabs on orders, process credit card payments, and arrange your inventory with only a few mouse clicks.

Millions of business owners worldwide rely on Xero, the industry-leading cloud accounting software, to keep track of their finances. Xero users may connect, discuss ideas, and get free, unlimited support after they sign up.

The Xero Dashboard displays critical financial metrics and places all relevant information at your fingertips.

In this article, we'll discuss the benefits of linking your Shopify store to the accounting software Xero.

1. Extensive and Insightful Reporting

Once you've connected Xero and Shopify, you'll have seamless access to your sales data, making it quick and simple to compile reports and analyze trends. When you import your sales data into Xero daily, you'll have the most recent information at your fingertips in your Xero dashboard, allowing you to spot and address problems much sooner.

All of your sales information, whether entered manually, processed using Shopify's e-commerce features, or processed at a physical register (through Shopify POS), will be accessible in one central location. So it's simple to evaluate your sales channels' effectiveness.

With Xero, you can quickly evaluate each channel's performance and make swift, informed adjustments to your resource distribution.

2. Streamlining Bookkeeping

By integrating Shopify with Xero, you can automatically sync your orders with your accounting software regularly, saving you time and effort. By synchronizing only the most up-to-date data from Shopify, you eliminate the possibility of double entries and the accompanying errors caused by manual data entry.

If all goes as planned, then analyzing your financials won't be anything but a breeze. You can also sync returns data with Xero, making it considerably easier to modify your accounts for returns and giving you a consolidated view of your sales and refunds in one spot.

Managing tax rates for numerous countries is also a breeze, which helps to alleviate some of the stress associated with selling internationally. Xero can use your Shopify orders to create tax authorities automatically.

3. Integration of Xero and Shopify

The following are some of the capabilities made possible by the Xero app's integration with Shopify:

  • Support all applicable taxes, including those in the United States and Canada (including sales tax, county/municipal/provincial tax, Goods and Services Tax, VAT, etc.).

  • Processes Product Imports and comparisons mechanically

  • Shopify's coupon and voucher features work flawlessly

  • In Xero, you can configure a different sales account (nominal code) for each currency supported by your company.

  • Flexibility in Xero's Category Tracking Settings

  • Integrates well with Tracked Inventory systems, where inventory levels are automatically adjusted upon invoice approval (two-way inventory synchronization coming soon)

  • Make payments toward new invoices instantly

  • Imports Processing Fees Mechanically (a function offered by many service providers, including Shopify Payments/Stripe and PayPal)

  • Integrated POS System with Shopify

  • Existing client information is used to find a match with an invoice and any missing

  • Information is filled in manually or automatically

  • Use Xero's PayPal Importer and Bank Feeds to match payments with invoices

Conclusion

The process of connecting Shopify with Xero is quick and easy. Because of their shared commitment to providing excellent value to their business clients and satisfying their day-to-day requirements, the two organizations would work wonderfully together.

Shopify and Xero work together to streamline your e-commerce business operations so you can get back to doing what matters for your company.


We are business advisors for online stores and influencers. What makes us different is that we are young and innovative. We’re not your typical boring accountants. We have a passion for eCommerce and aim to empower, excite and build confidence in businesses through clarity in their figures. Contact us at The ECommerce Accountant if you need assistance with your Shopify Xero setup.


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