The Cut, Shopify, Xero and integrations of all shapes & sizes.
Running a Shopify store requires efficient financial management to ensure profitability, growth and sustainability. Integrating the right accounting software with your Shopify store will allow you to streamline operations, improve accuracy and save time.
At The Cut, they specialise in Shopify websites, and that includes integrations with ERPs, inventory management platforms, financial software and more.
“We do like Xero,” says Ben de Jorge, the Cut Director & Co-Founder, “partly because we use it ourselves and partly because it’s progressive and often a very good fit for SMEs. Plus, Xero lends itself to smooth and deep Shopify integrations. But Xero is not your only option, so we’ll take an even-keeled approach to share insights into your options to connect Shopify with your source of financial truth.”
Table of Contents
Choosing The Right Accounting Software For Your Shopify Store
Effective financial management is fundamental to every business, eCommerce included. Without proper integration between your sales platform and accounting software, you can become overwhelmed by manual tasks and inaccurate financials.
The right accounting software will link your Shopify store and your financial records, providing a flow of data that provides real-time financial visibility. It enables you to track sales, manage inventory, generate accurate financial reports and even automate repetitive processes.
Plus, you’ll have a holistic view of your financials, allowing you to make informed decisions that drive growth and optimise operations. With accurate financial data at your fingertips, you can easily identify trends, spot opportunities and identify areas that require attention.
Let’s delve deeper into selecting the right accounting software, explore top options, compare features and look into the integration process.
Your Selection Criteria
When choosing the right accounting software for integration with Shopify, consider the following factors to help make sure that the software meets the needs of your Shopify store, and your business overall.
Ease of Use
Opt for accounting software that offers a user-friendly interface and intuitive navigation, factors that define the Xero experience. Avoid complex software that requires extensive training. Instead, look for software that simplifies financial management tasks and makes it accessible to business owners, bookkeepers and accountants.
Integration Capabilities
The ability of the accounting software to integrate smoothly with Shopify is paramount. Ensure that the software offers robust integration features that allow for automated data syncs between the two platforms. This eliminates the need for manual data entry and ensures your financial records are live and accurate.
Pricing
Consider the pricing structure and look for a solution that aligns with your budget with transparent pricing models. Some software charge monthly subscription fees, while others have transaction-based or add-on costs. Make sure you evaluate both the upfront and long-term costs.
Scalability
As a Shopify store owner, you’re probably planning for growth so choose accounting software that can scale with you. Consider the capacity of the software to handle increasing order volumes, accommodate expanding product catalogues and support integrations with other business tools in the future.
Top Accounting Software Options
Let’s take a look at a few of the most common and popular accounting software platforms that all have the capability to connect with Shopify. Remember, it is the processes and needs of your business that are most important, so make your decision based on the best fit for the ways you do business.
Xero
Xero is a robust accounting software with a user-friendly interface, scalability and options for seamless integration with Shopify. It is a popular choice with many progressive business owners, large and small. Xero offers features like order syncing, inventory tracking, and comprehensive financial reporting.
MYOB
A comprehensive accounting software solution that offers a range of features designed to streamline financial management for businesses. With its integration capabilities, MYOB allows for seamless syncing of sales orders from Shopify, ensuring accurate and up-to-date financial records.
QuickBooks Online
A popular accounting solution that offers a range of features for Shopify integration. It provides tools for invoice management, inventory tracking, and financial reporting. QuickBooks Online also offers various pricing plans to suit different business sizes and needs.
Sage Accounting
Another powerful option that integrates well with Shopify. It offers features such as order syncing, invoice management and automated reporting. Sage Accounting is known for its advanced capabilities, making it suitable for growing businesses with more complex financial needs.
Zoho Books
Offers comprehensive accounting features including order syncing, inventory management and financial reporting. It also provides customisable pricing plans to accommodate businesses of all sizes, making it a flexible choice.
Feature Comparison
Let’s compare some key features offered by these accounting software options. By understanding their capabilities, you can make an informed choice on the best one for your business.
Consider the features that accounting software offers eCommerce businesses, like order syncing, which automates the transfer of sales data from Shopify to the accounting software, making reconciliation and tracking of sales easier.
By prioritising ease of use, integration capabilities, pricing, scalability and eCommerce-specific features, you can narrow down your options and find the accounting software that aligns with the way you run your Shopify store.
Xero
- Order Syncing – Xero offers seamless order syncing with Shopify, ensuring accurate and live sales data.
- Invoice Management – Create and customise professional invoices, send automated reminders and track invoice status within Xero.
- Inventory Tracking – Monitor stock levels, receive low inventory alerts, and manage purchase orders for efficient inventory management.
- Financial Reporting – Generate comprehensive financial reports, including profit and loss statements, balance sheets and cash flow statements.
- Automation Capabilities – Automate repetitive tasks like bank reconciliation, payment reminders and recurring invoices for enhanced efficiency.
- Advanced Features – Xero offers advanced features such as project tracking, expense claims, multi-currency support and integrations with over 800 third-party apps, allowing for extensive customisation and scalability.
MYOB
- Order Syncing – Integrates with Shopify to sync sales orders, allowing for streamlined data transfer and accurate financials.
- Invoice Management – Create professional invoices, track payments and send automated reminders to customers.
- Inventory Tracking – Monitor inventory levels, receive low stock alerts and manage purchase orders for efficient inventory management.
- Financial Reporting – Generate detailed financial reports, including profit and loss statements, balance sheets and cash flow statements.
- Automation Capabilities – Automate recurring transactions, bank reconciliations and payment reminders for improved efficiency.
- Advanced Features – Offers features such as payroll management, time billing, multi-currency support and integrations with other MYOB products and third-party apps, making it suitable for businesses with complex financial needs.
QuickBooks Online
- Order Syncing – Syncs with Shopify to automatically import sales data and update your financials.
- Invoice Management – Create and customise professional invoices, track payments, and send automatic reminders to customers.
- Inventory Tracking – Track inventory levels, receive alerts for low stock and manage purchase orders.
- Financial Reporting – Generate detailed financial reports, including profit and loss statements, balance sheets, and cash flow statements.
- Automation Capabilities – Automate recurring invoices, bill payments, and expense categorisation to streamline processes.
- Advanced Features – Offers features like project tracking, sales tax management and integrations with numerous business tools, expanding its functionality and adaptability.
Sage Accounting
- Order Syncing – Integrates seamlessly with Shopify to sync sales orders and customer information, eliminating manual data entry.
- Invoice Management – Create professional invoices, track payments and send automated reminders to ensure timely payments.
- Inventory Tracking – Monitor inventory levels, receive alerts for low stock and automate inventory adjustments based on sales.
- Financial Reporting – Generate detailed financial reports, including profit and loss statements, balance sheets and cash flow statements.
- Automation Capabilities – Automate recurring invoices, payment reminders and bank reconciliations to streamline financial workflows.
- Advanced Features – Offers advanced features like project tracking, time and expense management and integrations with popular eCommerce platforms, making it a comprehensive solution for growing businesses.
Zoho Books
- Order Syncing – Seamlessly syncs with Shopify, automatically importing sales orders and customer information.
- Invoice Management – Create professional invoices, send automated reminders and track invoice status.
- Inventory Tracking – Track inventory levels, receive alerts for low stock and manage purchase orders.
- Financial Reporting – Generate detailed financial reports, including profit and loss statements, balance sheets, and cash flow statements.
- Automation Capabilities – Automate recurring invoices, payment reminders, and bank reconciliations to improve efficiency.
- Advanced Features – Offers advanced features like project management, client portal, expense tracking and integrations with other Zoho business tools.
- Each accounting software option brings its own strengths and caters to different business needs. Consider the specific features and functionalities that are most important for your Shopify store’s financial management and choose the software that aligns best with your requirements.
Integration Process
Integrating your Shopify store with your accounting software can be a straightforward process, depending on the depth of the integration you, and your bookkeeper/accountant, need. While the exact steps will vary, the following stages are typically involved with most integrations:
- Install the accounting software app from the Shopify App Store.
- Follow the prompts to connect your Shopify store with the accounting software.
- Configure integration settings, such as mapping payment methods, taxes and product categories.
- Sync your sales data, invoices and inventory with Shopify.
- Verify the integration and ensure that data is accurately transferred.
Pricing and Support
Consider the pricing structures of each accounting software option including subscription plans, add-on costs, and transaction fees. It’s always worthwhile to assess customer support, including documentation, tutorials and responsive help channels. Understanding the costs and support options will help you understand the level of support you can expect from your chosen software. You can also ask your bookkeeper for help with choosing the right accounting software and the integration process.
Wrap Up
When it comes to choosing accounting software to integrate with your Shopify store, the most important investment you can make is in your own investigation of the options and the best fit for your business. And there’s no need to attempt this investigation alone. Speak to specialists on both the Shopify side and the accounting side of your decision-making process.
The best choice of eCommerce platform, and accounting software, is different for businesses of different types, sectors, sizes and requirements, so make sure you look to your peers for input and advice, but always come back to your own company and what you specifically need.
There’s no doubt about it, choosing the right technology stack that enables the smooth and accurate exchange of business-critical financial information in real-time, is a game-changer.
Set that concept as your benchmark, and spend some time taking a good, hard look at your best options, you won’t regret it.
