Hello, I've just launched a small candle business and am currently trading as a Sole Trader (not VAT registered).
I have a Shopify website but I am confused how to deal with invoices and Shopify fees.
Do i need to manually create an invoice in Quickbooks every time I make a sale? Do those invoices have to be emailed to the customer from Quickbooks before I can mark them as paid? How do I account for the shopify fee?
I think it might be easier if i use Quickbooks online but I am able to use that if I am not VAT registered?
Welcome to the QuickBooks Community, @GBansal.
Thanks for choosing QuickBooks Self-Employed (QBSE) to cater to your business needs. I'm here to provide some information about Shopify so you can handle this matter properly.
Since e-commerce services like Shopify cannot connect to QBSE, you're correct that you'll have to manually create an invoice for each sale. However, you can import transactions from Shopify through a third-party application. You just need to contact the Shopify Support Team to check the configuration of the software and assist you with transferring transactions to QuickBooks.
Moreover, there's no need for you to email the created invoices to your customer before you can mark them as paid.
For your Shopify fees, you can categorise them based on the SAF103F deduction categories. This will help organise your income and expenses so you can see which aspects of your self-employed business have the most impact. If you're still unsure of what category to use, I recommend seeking assistance from an accountant.
Additionally, kindly visit this resource to see different information on how QBSE tracks your business income and taxes: QuickBooks Self-Employed Overview.
Please keep me posted if there's anything else you need or any concerns about managing invoices or payment transactions in QBSE. Just leave a comment below. Have a great day ahead!
Thanks for coming back to me.
You said that you don't need to send emails to mark them as paid, but I am finding that is not the case. If my invoice is still a draft, there is no option to 'mark as paid'. I don't need to send an invoice via Quickbooks as Shopify already does that for me.
So my questions are:
1) Do I need to log manual invoices from Shopify, and offset the Shopify fees as an expense? Currently, I have my business bank account synced to my Quickbooks Self Employed, so whenever Shopify is ready to do a payout, I receive payment from Stripe (minus any Shopify fees) and that is automatically logged as business income. As that transaction is logged minus fees, is there any reason to create invoices in Quickbooks?
2) If I do still need to manually add all invoices in Quickbooks, despite them being sent out from Shopify, is a work-around just sending the invoice to myself? Rather than to the customer. That way, I can mark it as paid. And then log the fee as an expense.
I have tried Quickbooks online so that I can get the Shopify integration but to be honest it looks so complicated. I'm making very minimal sales at the moment so it feels like its way too advanced for where my business is at. I find the Quickbooks Self employed much more user friendly, but I'm unsure about whether or not I should be recreating my invoices in Quickbooks.
Hello there, @GBansal. I'll be glad to share some details about your concern about whether you need to enter your Shopify invoice in your QuickBooks Self-Employed (QBSE) account or not.
Know that it depends on your business needs if you enter those invoices in your QBSE account for documentation or leave it as is. Please be aware that the invoices in QuickBooks Self-Employed are for tracking purposes only. With that said, they won't affect your business income and tax reports. Because of that, you got zeros on your business income and owed taxes. If you wish to continue and add invoices to QBSE for documentation, mark them as paid by saving the invoice and then add a note inside it.
Additionally, when you receive the invoice payments, make sure to do a deposit for it to show under the Transactions page. You can visit this link for more information about adding transactions in QBSE: Manually add transactions in QuickBooks Self-Employed.
Additionally, I've got you this article for more information about categorising transactions in QBSE: Categorise transactions in QuickBooks Self-Employed.
You can also check this page in case you'd like to add older transactions in your QBSE account: Add older transactions to QuickBooks Self-Employed.
Should you need further assistance managing your invoices in QuickBooks? Or do you have any additional QuickBooks-related concerns? Feel free to get back to me anytime. I'll be more than happy to lend you help. Stay safe!