how to enter shopify sales into quickbooks

hi i'm veronica masik and i help shopify,sellers and bookkeepers to set up,organize and streamline ecommerce,financial systems whether you're looking,for diy done with you or done for you,financials in a previous video i showed,you how to enter shopify income,transactions into quickbooks online,using a manual journal entry,since doing that video i've developed a,much more streamlined system for,recording shopify income using just one,journal entry per month,here's my updated step-by-step tutorial,for recording shopify income manually,into quickbooks using just one journal,entry per month,now be aware that this isn't a good fit,for every seller and that i still prefer,to use an integration app between,quickbooks online and shopify but this,process can save you a lot of time if,it's a good fit for you let's go over,the tutorial,with the shopify manual journal entry,you'll manually enter a summarized,monthly transaction into quickbooks and,you won't be using a2x or an integrator,app between shopify and quickbooks,online,this method is good for,very small businesses or simple sellers,who are using a few payment processors,and using shopify payments only,the advantage of this method is that you,will do one entry per month so it can,save you a lot of time,but the disadvantage is that you will,typically have timing differences,between sales and payouts and you have,to record those differences to a,clearing account in order to be able to,track the differences that are happening,between the sales and the payouts,so you need to decide whether this,method is a good fit for you or if,you're a bookkeeper whether it's a good,fit for your client,before we get started you'll need to,download my free shopify bookkeeping,blueprint in order to add some accounts,to your chart of accounts,go to the section that says set up your,quickbooks for shopify and set up the,accounts that you need in the chart of,accounts,i've listed the account names account,types and detail types,you'll also need to add clearing,accounts for all of your payment,processors,and add accounts for your payment,processor fees,to add accounts in the quickbooks chart,of accounts from the left go to,accounting,chart of accounts,you may need to click see your chart of,accounts,and then click new,then select the account type detail type,and enter the account name and then save,and close,we'll need to add an additional account,it's called the shopify clearing account,let's enter that together for the,account type select other current assets,detail type,other current assets,and for the name enter shopify clearing,save and close,now that we have the chart of accounts,set up we're ready to make the journal,entry in quickbooks you'll need to start,by going to the shopify finances summary,from shopify go to analytics select,reports,find the finances section and then click,on finances summary,run the finances summary for the desired,date,usually that would be as of the last,month or for the month in which you're,recording those transactions,on the left you'll see all of the sales,transactions,on the right you'll see all of the,transactions processed through the,payment gateways,i've also coded all of the transactions,for you,we'll be using these amounts in the,journal entry in quickbooks,to enter the journal entry in quickbooks,click on the plus new button,select journal entry,enter the journal date the journal date,should be the end of the month for which,you're recording the transactions,enter a journal number or just use,shopify,let's take a closer look at the journal,entry in quickbooks and how we got the,amounts and the account categories,you'll notice that for the account,categories we show a parent account such,as shopify income followed by a colon,and then the sub-account shopify sales,so we have shopify sales shopify,discounts shopify returns,shopify shipping income,and other accounts,then we have a column for debits and a,column for credits,and in the description we picked up the,description from the shopify finances,summary and indicated whether that,transaction is typically a credit or a,debit if i indicated credit that means,that the amounts go under the credits,column,if i indicated debit then the amounts go,under the debits column let's start with,shopify sales we have an amount of forty,three thousand four thirty three twenty,six,and it is the gross sales from the,shopify finances summary,as you can see here we have gross sales,for that amount,next we'll pick up discounts,returns,shipping,taxes,and gift card sales,let's go back to the journal entry,you can see that we have discounts,returns,shipping income,sales taxes,and gift cards,for all these types of transactions you,use the same account,over and over basically so a shopify,sales will always go to shopify sales,this counts always to shopify discounts,returns always to shopify returns,but notice then that we have,transactions going into the clearing,accounts we have manual clearing shopify,paypal clearing,affirm clearing and shopify payments,clearing,when we look at the finances summary on,shopify you'll see that all these,amounts come from the payment side and,depending on the payment processors that,are being used you see different payment,processors being listed so you'll need,to make sure to pick up each of the,payment processors,for example manual,or paypal,or shop pay or shopify payments,and you'll need to use the corresponding,clearing account from the chart of,accounts,as you can see here manual clearing,shopify paypal clearing,shop pay affirm clearing and shopify,payments clearing,just as a reminder if you haven't done,so already you'll need to download my,free shopify bookkeeping blueprint so,that you can get the list of all of the,account categories that you'll need to,set up in your quickbooks chart of,accounts including all of your clearing,accounts,so for each clearing account such as,manual clearing,and pick up the amount from the shopify,finances summary,and then under the description enter the,name of the payment gateway,for example we have manual gateway 8002,1801,and that will go under the debits column,all of the amounts received from the,various payment processors go under the,debits column,after you pick up all of the amounts,indicated on the finances summary,from the left,and from the right under payments you'll,have a difference and as you can see,here,that my total sales,and my total payments are different,that's because there are timing,differences from when sales are made,and when payments are received,on the journal entry you'll need to add,that difference to the shopify clearing,account,and as you can see i enter that,difference here and under the,description i indicated that these are,timing differences,once you're done,the total amount of your debits must,equal the total amount of your credits,once you finish the journal entry then,save and close,to get the listing of the account,categories that you'll need to add to,the quickbooks chart of accounts be sure,to download my free shopify bookkeeping,blueprint i've linked that for you in,the description i'm veronica masik are,you ready to work with an experienced,and reliable shopify accounting pro,check the description below to learn,more about my services and how we might,work together if this content is helping,you then subscribe to my channel ring,the bell and give me a thumbs up,and check the description below for all,of my free resources and the link to,join my facebook community,and also let me know in the comments if,there are any other topics that you,would like me to cover in the future,i'm here to help you i'll see you next,time

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