Connect Shopify to QuickBooks Online

[0:00] If you use Shopify to process your sales, you can save time by automatically downloading your sales and other transactions into QuickBooks. First let's review how to connect your Quickbooks account with the Shopify Connector App. If the permissions look good, click Install once again and click Continue to connect the accounts.

[0:23] From here, you will select which bank account Shopify deposits your money into. This is usually your checking or operating bank account. Keep in mind, Shopify doesn't deposit each sale right away. Instead, you receive a payout from Shopify each day or when you choose to make the transfer.

[0:41] That means you need an account to track where Shopify holds the money before they send you the final deposit that could include sales, refunds, and fees from an entire day's worth of transactions. In QuickBooks, your Undeposited Funds account, which could also say Payments to Deposit, is where Shopify stores your funds before you receive the deposit to your bank.

[1:03] Keep in mind, If you ever need to change the settings, select the three dots on the Shopify app and click Settings. You can see all the default settings that the Shopify Connector uses for line items, customers, vendors, among other things. To change any of these default settings or any of your previous selections, choose a section, make your changes, select Save, and Sync Now.

[1:27] Let's review a few of the ones you should know: Automatically add transactions - allows us to add transactions to your books if we have all the information or we have high confidence. Product tracking - Enables us to match product/service data imported from Shopify with existing products/services in Quickbooks Online.

[1:48] If this setting is OFF, then all products/services from Shopify will be mapped towards a default product, which can be modified in settings. Customer tracking - Similar to Product tracking, this setting will allow us to match customer data from Shopify to existing customer list in Quickbooks Online. If OFF, default customer details will be chosen.

[2:09] Review and confirm the sync settings and click Sync now. Once the sync is complete, you'll see your transactions start to populate. So now, let's add your first sale. Data brought in through the connector can be reviewed before it's added to the books by going to App Transactions or Integration Transactions under Accounting App.

[2:31] Recording transactions from the Shopify integration is an important first step before these transactions can be matched in your bank transactions. Transactions listed under the For Review tab await your approval and don't appear on your reports or financial statements until you confirm them.

[2:50] Click on the transaction if you want to see details of the order like customer information or products sold. If the product needs to be categorized, matched, or created to match your inventory in Quickbooks, you can do this here. If you'd prefer to only see your payouts here, select the filter and then """Payouts."

[3:09] When you see "Review" in the actions column, there may be some information, such as the customer or the product or service, missing. So let's select Review to see additional details about a transaction. If you see "confirm" in the actions column, that means Quickbooks collected all of the necessary information for this transaction.

[3:30] If you would prefer to not review the transaction, select the dropdown menu under the actions column, then "Confirm." You find confirmed transactions in the Categorized tab. They stay here unless you undo them, which moves them back to the For Review tab. Once you click on a transaction, you can either add a new customer or match the customer with a name from Quickbooks.

[3:54] To add this customer as a new customer, select "add new" under the Customer dropdown. QuickBooks fills out all of the information for you based on the information in the "shopify details" box. Select Save. Now let's look at the Products and Services box. Quickbooks shows the Product or Service as a "Shopify sales item" when the Product tracking setting is OFF.

[4:15] When it's ON, it automatically matches existing available products in Quickbooks. If you wish to change this, select the dropdown menu and then select a different product or service. To add a new product or service that matches the description from Shopify, select Add new. Select an income account for this product or service, then Save and Close.

[4:37] Once all of the details of the transaction have been reviewed, select Confirm. QuickBooks will learn from your selections and assign the same product or service to other transactions with the same item. When you have Shopify B2B sales or sales to wholesale customers, those orders will be imported to Quickbooks as Invoices.

[4:58] These invoices will have all the necessary information like products and services sold, company information and payment terms. Say after a few days you get payment for the order in Shopify, it will be imported as an Invoice payment to Quickbooks and the Invoice Payment will be automatically linked to the earlier Invoice that was added to QBO.

[5:19] When a payment for a B2B order happens outside of Quickbooks and you mark the invoice as Paid, then this Invoice status (paid) will be sent to Shopify and the order will be marked as paid in Shopify as well. Thereby both Quickbooks and Shopify are in sync for both B2B and B2C transactions. Now that you've added a few sales, go back to the Chart of Accounts.

[5:42] Notice, your bank account balance is still $0.00 because you haven't received the money from Shopify yet. However, your Undeposited Funds or Payments to Deposit account balance shows where the sales will sit until you receive the payout from Shopify. When you receive money from Shopify to your bank account, QuickBooks records a deposit. Let's review a payout transaction now.

[6:06] This transaction will group received payments, fees, and refunds that represent the net payout you receive from Shopify.. Make sure you assign the right bank account, and that it's linked to to correct transactions…and Confirm it. Back on the Chart of Accounts, you see that Undeposited Funds or Payments to Deposit is $0.00, and your bank balance shows the money Shopify deposited.

[6:32] Now you're ready to use the Shopify Connector App in QuickBooks.