Published on: February 4 2023 by pipiads
Table of Contents About dropshipping bookkeeping
- FULLY AUTOMATE YOUR SHOPIFY BOOKKEEPING (EASILY Track Your Profits!)
- How to get dropshipping accounting done right
- Dropshipping Accounting (How To Manage Tons Of Transactions)
- Learn Ecommerce Accounting | How it differs from other accounting
- Amazon FBA & Dropshipping Accounting A to Z
- Monthly bookkeeping in 6 steps for Shopify sellers
FULLY AUTOMATE YOUR SHOPIFY BOOKKEEPING (EASILY Track Your Profits!)
yo, what's up, guys? it's your boy, jordan, back with another ecommerce video and i got some awesome stuff to tok to you guys about in this video. in this video, we're gonna actually be toking about how to track your profits and stay on top of your bookkeeping. this is one of the most important parts of your business and a lot of people barely tok about this, probably because it's not sexy, is boring and it's not something that is enjoyable to do. but if you don't manage your books properly, it could be so easy for you to end up losing money, and I know that's happened to me firsthand. so I figured this video was essential to bring to you guys. so look, anyways, we're gonna get right into it. but if you'd like to quality my content, give me a thumbs up and hit that subscribe button down below. also, join my facebook group. there's over 5,000 people in there so you can network and meet up with other ecommerce entrepreneurs. but hey, enough of that, let's get right into the video, all right? so, like I said, bookkeeping is literally one of the most important aspects of your business. it's not something that is going to make you more money, right? it's not something that you do and immediately see a result out of, but it's one of those things that if you don't do it, your entire business could crumble and fall beneath you. and the thing is there's a ton of ways out there to manage your bookkeeping and do it. and that's kind of what I wanted to make this video about, what has worked best for me and what I would suggest to you in your position as an ecommerce entrepreneur. so what I was first starting: I had taken my business and we were just testing products and spending money on ads and spending money on Aliexpress, and it was just money, money, money going everywhere, losing money each day, making money a little bit on one day, and the thing is I wasn't tracking it at all. there was nothing where I could look and see: hey, we made this much profit today. hey, we lost this much money. so all that I was looking out was the number of my bet count and if it was good, there was money in there, I gave it a thumbs up. if I was like negative or starting to lose money, that was a bad sign. and the thing is, while sure, this may be an OK way to manage your finances, if you do it like this, especially at scale you're going to fill your business is not going to be successful, you're going to make no profits and it's not going to be something that is sustainable. so I highly suggest- even if you're not making profits yet, even if you're not making good money yet, that you stay on top of your bookkeeping from day one of starting your business. I'm toking that first ad, that first campaign you launch. you need to write down: hey, we spent $40 on this specific day and we got one sale, so we spent $7 on out of the Express, and that way you can look back on your whole entire month and say, look, this is the profits that we've made and it makes it so much easier for yourself and for your state of mind that you can scale your business heavier. or you need to know when to kind of pull back and make some adjustments to what you're doing. so what are the best ways to manage your bookkeeping? so in the past year been kind of going through a ton of different options and I have two huge suggestions for you guys trying to figure this out. so the first one is for the people who are just getting started out, the people who are just making a little bit of money, maybe not making any money at all, just spending money on ads and spending money for filling orders. what I suggest to you is to set up and Excel or Google spreadsheet now. on this spreadsheet you're gonna want to include all of the expenses of your business and all of the revenue streams of your business. so, for example, the way that mine looks, I'm gonna pull it up right now and I'm gonna read out two columns. I'm not gonna show you guys my books because I don't really want to do that, but I'm gonna read to you the columns that I'm using on my specific documents. alright, so on my document, I've put in the date, the gross revenue, the discounts. so when somebody comes to your store in charges with a discount, I put that on there because you want to account for everything. I put the returns for that specific day and then I do a net revenue column. so it's all those values added up and subtracted to equal the net revenue. from there I do the cost of goods sold, I do the ad spent and I do the transactional fees and then right after that, that's gonna put an equation to where I can fill in my net profit and I can see the exact profit margin of how I'm doing. so this isn't an exact one. that is mine, but this is like a template that I've set up, so I'll pop that up on the screen right there you guys can see exactly what I'm toking about and you will be good to go. but that's what I suggested- that people just getting started out- and you can take that and you can input that manually each and every day just to stay on top of everything and be good to go. now, for those who are starting to grow and scale their businesses, I have a better suggestion for you guys. I found this awesome service that I've been using a ton recently. it's called bench and essentially what it is is. it's not that expensive. each month, you have a whole entire team of bookkeepers come and manage your books every single month. they log in to your PayPal, your bank accounts, your Shopify accounts and they track everything individually and they input it into a bunch of different reports that you can view each day and each month to stay on top of your finances. and this has been a game changer for me. I've been using the service for the past month and a half now and it really allowed me to give some more insight into how my business is actually performing month over month, which is something that I had before with the document, but it wasn't as organized and delivered to me in such a good fashion. so I'm a huge advocate for bench now. I think it's an awesome service and it's something that I really suggest that you guys look into. if you are starting to scale your store, maybe if you're doing about 500 to 1k plus a day, this is when I would start looking to get into a software like this, because they make the process hands-off for you, so you don't have to focus on it at all. you don't have to spend any time at all each month bookkeeping. you just need to look at the documents every month and stay on top of it. also, another big plus for them: I kind of got screwed over doing taxes last year. this is the first time my doing it myself with bench. they'll actually take your documents and they'll present it for you so you can take it and just hand it over to an accountant for tax season. so honestly, guys, I think it's an awesome service. I think it's something that you could look into. so if you're interested in like figuring out more about bench, I've put a link like down below to check it out and maybe you guys could sign up see if you like it, and I think they also give you like a free month of service if you sign up. so highly, suggest that you guys give bench a go. I've just started using it recently, but I have friends that also do big numbers that use it and they stand by it heavily. so it's kind of a newer service. I figured I would make this video now. I kind of put you guys on and tell you what's working best for me. yeah, guys, so that pretty much wraps up how I'm doing my bookkeeping. I use bench. now. bench, like I said, has been great for me, but prior to using bench, I used to input everything manually and stay on top of that, and me personally, I'm kind of a lazy person. from time to time I can get a little unorganized with various points in my life. so having a team of people dedicated to doing this has made everything easier. so if you're just getting started, get your spreadsheet, do it yourself. that's going to be the best value for you. but once you start scaling, just get a team, get people doing it for you so you don't to focus on that and to focus on the income-producing activities that are gonna make.
How to get dropshipping accounting done right
hey guys, since this video, I'll tok about how to make your drop shipment accounting a simple right and how to manage it without any issues, and I'll tok about specific platform that you can use for that purpose. so, basically, the platform this you can utilize for make all of your accounting very streamlined, right. so if you don't want to have any tax issues, if you don't want to have any IRS issues, if you don't want to have any accounting issues and waste like tons of time for this, you know, and that's specifically you know, if you're doing the booth volume with your drop shipping business, this platform is for your notebook, exactly. you know how you you can utilize it, how you can basically get the full advantage out of it and how to simplify it and say you can probably, you know, do your some your bookkeeping alone or you can work with someone, but if you want to build like a massive business, you have to delegate. you have to basically free up your time from those. you don't like lower value tasks and was it like? so accounting this task, which is like low value but at the same time, is very important right. so you want some professionals to handle it right and you have to. you have to delegate, right. so you must delegate it, because you know if you do it manually, just you just not the most effective use of your time, and I would say like 20k per mass is a good trash hole for investing into professional accounting services, maybe even earlier, right? so if you have a company, if you have LLC, then you definitely need you know how pooses and why I recommend bench. so branch is a service that I recommend for a bookkeeping right, for accounting, and it integrates directly with Shopify, which is awesome, right. so all of your, all of your transactions, all of your sales, like, integrate directly with bank. so all the accounting is very, very easy to do. and also, you get the dedicated like Account Manager, right. so whatever the plan, you can see all of their plans here. all right, so every plan comes with a dedicated book bookkeeping team. by the way, if you want to sign up for bench, there is a link below this video that you can use to sign up. you get like a free trial, so basically to work with you through 1 months for free, though basically help you out as much as possible, and you didn't, you didn't even have to pay for it, right? so just click on link below: sign up for this, you know, free trial with them. if you, if you're looking for this accounting service, if you want to free up your time from this, right so they get like this service. they have dedicated bookkeepers right, just for you. they have a drill humans, right, people who are, you know, do this like 24/7. so, like I always think about anyway, where it's like you have to focus on something that drives the most, you know, factor and the rest of other things, just keep people that do this stuff like 24/7. so, for example, if you do your own like video editing, it's not smart use of your time. you have to give your video editing to to someone who does it like 24/7, who's very good at it, right, so the same with accounting, right, so they're team. like imports, advanced statements. they like categorize transactions and prepare financial statements for you every month, right, so basically, simplify everything for you. they work in-house and their response was in one business day, which is like good communication, like everything can get sorted very fast. so, financial data: they provided financial data, master, financial statements and expanse overviews. so, instead of like just plugging it yourself, from what different sources? just you just use the service. they do do all for you. you just review it, see what may be like expenses you can eliminate, maybe some things you can adjust, and basically have the full, full picture of your business right and at a glance. visual reports help you to see the big picture and give you actionable insights to help you grow your business and you assume, basically, you'll never be in a dark anymore. right, so you can see here basic about how it works, right, all of their, all of their, like, all of the business insights you can see here, like cash, right, like real-time flow, a real-time cash flow tracking. right, so everything is provided in the reports. like this, very like powerful, very easy to understand. so it's just amazing. like powerful financial reporting bookkeeping software. like everything is very like they have. they have like closer demonstration you can see, basically it's very, it's very like straightforward. so this software basically simplifies a lot of those things for you that you would just you would be spending a lot of time for, right, so basically how it works. they introduce you to the dedicated bookkeeper, right, so once you sign up, don't get to know your business. show you how badge works and, yes, sir, ever seen they need from you and that each month your bookkeeper imports your business transactions and gets to work on your book, book books and if they need anything from you they'll get in touch right. so you have this like transparent to communication first for what they do, what they do best. you do what you do best like tell your ads managing your business, hiring people like, and they just you know this part is just taking you know care of right so easily you can easily track business help with real time and mostly financial reporting at tax time. they sent, as they send you everything you need to file right. so no like gathering you know, like resources from different sources, exporting you know statements and stuff like that. so everything do you need like they'll just provide you so you can file your tax returns, get one-on-one support when you need it right and bench also gives you like dedicated bookkeeper supported by a team of in-house experts, and they're there to take you know tedious like financial, admin and bookkeeping stress off your plate for good, right. so all of these services guys, um, again, there's like there's like free trial. use them, you can try it out, see if it's like good fit for you. there's a link below this video that you can use to sign up for this service. if you like it, you stay with them. if not, you know it's fine, but I'm sure you'll like it. that they have- they have a lot of services- is one of the is like America's largest bookkeeping service. right, it's like they. they have. they have a lot of customers, specifically ecommerce businesses, so I highly recommend them. click on the link below. sign up for this service is just free. up your time, especially if you already like having good traction with your business. just get it out of your plate and spend the time on what matters most. my sweet guys, if you're looking for helped, you know, scaling your business to the next level. how cuz your facebook ads, help with your ecommerce store conversions, overall, help with our infrastructure, then I click on the link below- there's a link in the description why- for a free strategy session with my team where we'll help you to basically scale your business to the next level. if you're a good fit and we'll be working together on this, and then, if you liked this video, please let me know what you think in the comments. subscribe to my channel. I'll be. I'll be sharing basically services and things that I have found valuable that you know you can you utilize for yourself so you can free up your time. you can make more money and you can, you know, make your business more efficient. so click on subscribe button. subscribe to my channel. I'll see you guys in the next video.
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Dropshipping Accounting (How To Manage Tons Of Transactions)
so how do you manage a ton of waters or especially drop shipping on Aliexpress, because if you're doing like 10- 20 dollars a day, you're literally bank statements going to have just tons of orders. so this is an issue everyone goes through. this relationship I used to go through. this is an issue a lot of my students and just everyday people having to deal with and I don't know what to do. then I haven't seen anyone post a solution or answer to discretion on YouTube, so that's exactly what I got to give to you guys. so basically, what you want to go ahead and do is either one- okay, so we should not have mentioned in the clip I'm going to show you guys soon- is if you use apps like the essence d xtr, where you basically combine your whole order. so if you have 21s for that, you'll combine it all into one eggs. actually I just paid one going to pay a payment for there's 20 orders saying you pay like 300 bucks and that's it. you'll just have one are the expression section, but 300 dollars. but you know I want to give you guys some more solutions just in case that doesn't work out. so here's a good, proper program showing you guys how to go ahead and manage- or your expression, sections when doing Shopify dropshipping. yeah, the main thing I want to tok about was the accounting stuff because, like I- I imagine even with you know the limited sales I have had, like it's- it's becoming a hassle with all these like individual Aliexpress purchases. so what is what I like the best practikes for that? perfect, so yeah, so there are two solutions. so solution number one appears: have a separate credit card and just for Aliexpress borders. so you could- you know that's pretty straightforward- have a separate card because now that every time you pay that off- I'm not counting, you just look at the end of the month how much you paid off of that credit card. it all is cost of goods because you know that you don't use that. cut off any other issues, and that's option one. and when the accountants need a in-depth breakdown of what happened with that $3,000 invoice at the end of the month, send them the export of that credit card and all have everything. you don't have to sort of look through it and look to see if there's any other expenses. you need a truck just because it's only used for all Express. so that's motion number one. no, option number two is: once you find a winning product, you would first start by working with the supply itself and asked them to do bulk CSV fulfillment. so you go ahead and you know, send them an associate with 30 orders for that day and they'll go ahead and add up those 30 orders out of the shipping cost for the countries on the excel. they'll give you an invoice for, say, $300 for that day's worth of goods and then you just have to pay one invoice that would say our Express third day, rather than have 30 small transactions in card. so that's option number two. but the option number three is you work with a pager where eventually you'll work with the agent that can fulfill several different products for you and they'll go ahead and send me invoices for everything, for all your orders. you just have to pay the occasion directly and that's just one transaction. yes, when you're testing and you'll get one or two off, one or two, one of orders for, like random items that you're testing that you're your agent can help you with, because there's just a one-off product, they're not gonna go ahead and bulk order it just to help you fulfill that one order. you will have to use your credit card for those in one of the orders but what you can do if you want accounting to me, neither it just refund those one-off orders for a product that you test a day for it could be a winner but only got like two, three unprofitable- just briefed on this- three orders, daven, bother fulfilling it, and that I don't know. you might not want three random small I Express transactions on your card and that's one way to avoid that. so those are the multiple different things you can do to really take your accounting much cleaner. that that makes sense. and when you, when you do get a winner, is it is the? is it day? is it like you? you pay the supplier daily, correct, sometimes you could work with at the door per week, usually if it's all expressed directly, like you, just continue with me. the current supply, onyx, partikular, better price. you'll be sending them and make so. she ate every day or every second guy, but every day is preferred because every work being behind, that's how you go ahead and handle those transactions. pretty easy to straight to the point. so there's a multiple different solutions that you guys can use. let me know if they work for you. drop in the comments below. do you do any Bob fulfillment? let me know before we have today journalist. uh, by now Phyllis Otis witness. but now that all of the courses or consoling cause of me, the one is here because I'm a qualified to do shop Kampala almond extract. hit the subscribe button. I'll be picking the best comment, every single video of that. I've got so an amazing day. let me see class tomorrow with much more valid peace.
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Learn Ecommerce Accounting | How it differs from other accounting
hey guys, welcome to this video on learning e-commerce accounting. by the end of this video, you're going to understand those unique challenges that e-commerce companies face with their accounting and you'll know where you're probably making mistakes, so that you can dive in deeper and start to get those better numbers real quick. if you haven't subscribed to our channel, please do so now for more of the best ecommerce accounting advice from our gurus here at ledger gurus. we help small and medium-sized ecommerce businesses with their accounting. we find that a lot of small business owners or their bookkeepers don't understand e-commerce accounting. it leads to really poor financial data. so really poor accounting leads to poor making, which can lead to business mediocrity or even failure. so we truly believe that e-commerce accounting is a huge piece of success for e-commerce businesses. so let's dive into the main differences between e-commerce accounting and typical accounting. the four main differences you need to be aware of within e-commerce accounting are: number one, where to find your financial data. number two, how to handle cogs and inventory accounting. number three, sales tax compliance- big pain. and number four- oh yeah, foreign transaction fees. so number one, where to find your financial data. for a typical business, when they do their bookkeeping, most of their financial transactions are found in their bank account. but with e-commerce accounting, things get really messy. you have financial data in your sales channels and your payment processors, and if you have multiple sales channels and payment processors, it's a pain to gather all that information into one place. so usually you get a net deposit from your sales channel or payment processor in your bank account. this is a net deposit and it does not reflect accurate revenue. so let's dive into this a little further. so let's say you see a deposit in your bank account from amazon for fifty thousand dollars. this deposit was likely likely included sales minus shipping cost, minus uh fba fees, minus gift card credit, plus maybe any sales tax that you collected from customers, and then it resulted in fifty thousand dollars that amazon deposited in your bank account. this is not your sales number. when you dive into amazon, you'll likely find- and i'm going to keep these numbers simple, but you'll likely find- you had something more like 150 000 in cells minus 25 000 in gift card credit, minus 25 000 and shipping fees minus twenty five thousand dollars in uh fba fees. okay, so if you're going to record uh, this number in quickbooks that you see in your bank account, you're misstating revenue and sometimes this can be by a large difference. now why does this matter? this is going to affect your your gross profit margin, which you make a lot of decisions off of. also, when you go to sell your company, let's say you're looking at a revenue or a multiple of of your revenue, recording, recording the sales accurately is going to make a big difference in the value of your company at that point. so this this is really important in understanding that where you find your financial data with ecommerce accounting is not in your bank account. you need to dive through your sales channels, through your payment processors, processors, and tie all that data up with what shows up in your bank account as you record that in quickbooks, online or xero. so now this- this can seem like a daunting task, uh, to dive through all these sales channels and payment processors, but there are a lot of. there's some tools out there that we really like. one of them is a to x. it's a great tool we use that takes your all your financial data from amazon or shopify and you can set it up so it transfers that into your accounting software. so i'll include a link to a video up here on atex accounting and another link on recording your amazon sales. you can also find that down below in the description. so, once again, the first main difference you need to understand with ecommerce accounting is that you find your financial data not just in your bank account but in your sales channels and payment processors. okay, moving on to number two: understanding how to calculate and record cogs in inventory. the most common mistake we see with e-commerce businesses is that when they purchase their inventory, they expense all of that purchase as cost of goods sold. so let's say they buy a bunch of inventory in january, you'll see a huge cost of goods sold in january. then in february, march, april, you won't see cost of goods sold. now, the issue with this method is that you you won't get a good understanding of the percentage of your cost of goods sold to sales. your cogs should move about the same in relation to cells. as your sales increases, cost of goods sold should increase, and and the opposite. so this is super important because sales minus cost of goods sold equals your gross profit margin, and and understanding and having an accurate gross profit margin as an e-commerce business is super important because you're going to base all your other decisions off of what your gross profit margin is. that's how much money you have left to spend on everything else in your business. so getting your sales accurate by finding your financial data in the right place and then getting your cogs accurate will give you that gross profit margin that you need. so how do you re accurately record your cost of goods sold? well, for each of your product skus, you should calculate a cogs for that product or the cost of that product. i'm not going to dive into how to do that in this video. i'll include a link up above and down below on calculating and recording cogs. but you'll have a product cost for each of your skus and however many, many of that sku you sell in a month, that's your cost of goods sold for that sku in that month. so we recommend that you tie this out at the end of each month so that on a monthly basis, you have a good understanding of your cogs and therefore your gross profit margin. now, when you expense out your cogs as you sell product, you also decrease your inventory amount and your inventory value should be, you know, the the cost that you've calculated for each product sku times, however many you have on hand. that's the value of your inventory and that decreases as you get rid of inventory or sell that product. that's a basic understanding of you know the basics of cogs and inventory but, like i said, i'll include some links down below and up above here that will give you more details on how to do that accurately. all right, so the third unique aspect of e-commerce accounting that you need to understand is sales tax complaints. sales tax compliance is messy. there's so many different laws and it differs by state, so it's difficult to keep track of where you need to be collecting sales tax and remitting that sales tax. so all i'm going to say is that this is something you need to be aware of. you'll have to dive in deeper to understand all the laws as you start out as a small business. typically you'll only need to collect and remit sales tax for sales in the state where your business is located or wherever your inventory is held, including amazon, fba, but for sales on amazon, amazon is collecting for most of its sellers. it's collecting and remitting sales tax in most states. i think there's a few left- few states left- where you actually need to collect and remit sales tax for amazon sells. but if you sell on other sales channels and you're required to collect and remit in in certain states, then you'll need to be doing that on your other sales channels and, like i said, each state has differing laws and there's different laws that require you to collect sales tax in states, so it gets really messy. we have a really good video on e-commerce sales tax that you can watch and i'm going to include some links down below on like pdf downloads that we have that take you through the steps you need to do for sales tax compliance. so if you, if you aren't tracking, you know your.
Amazon FBA & Dropshipping Accounting A to Z
what's up, champs, welcome it to today's video. my name is Sharon Peterson, I'm a full-time, seven-figure Amazon seller, and today I'm going to save your life and I'm going to take the stress of accounting and bookkeeping off of your plate. this is something that a lot of Amazon sellers face. a lot of e-commerce sellers, entrepreneurs, small business owners deal with their accounting, their bookkeeping. how do you track your expenses? how do you make sure you know that you're profitable? how do you file your taxes? how do you do this stuff? and a lot of times it stresses new business owners, and I was in the same situation. I did not know what to do, and so today I finally found the solution, and I'm gonna show you step-by-step how to it: delegate bookkeeping to someone else. that is not going to break the bank, and it's not a 2x, it's not QuickBooks, it's not fetcher, it's not helium 10 profits, it's something even better. so I'm really excited about today's video and, before we dive into it, I just want to welcome everyone that is new to the channel. if you guys have not yet subscribed, go down to smash the subscribe button, like this video, and drop a comment down below for the YouTube algorithm. it would really help me out and I just want to say thank you guys and, without further ado, let's dive into the video. okay, so I want to start off by telling you guys a story so that you guys learn from my mistakes and you don't make the same mistake that I just barely made. okay, it's a disaster. I'm embarrassed to even explain what happened to me, but there's two morals to the story and I'll kind of break it down. so, 2019: I scaled my business I was doing really, really well, and one thing that I did not do well was bookkeeping, keeping track of my expenses, accounting and all of that stuff. it was something that stressed me out. it was something that I was like I'll do it later. and at the end of the year they came tax season, January. I go to my CPA and I'm like, hey, I need to file my taxes. so I give him my stuff. and, long story short, it took him a ton of time to go through and basically file my taxes for me, because I did not do it for the previous year. so instead of it costing me $500 for him to file my taxes, it ended up costing me over $2,000 for him to take his time to get everything organized and prepared. so that was the first lesson. I did a horrible job of tracking my expenses and I wasn't doing it properly. I was using software tools that was basically useless and it wasn't helping me. so fetch her helium, ten profits, those nests, those aren't necessarily accounting software tools, and I learned that the hard way. so that's the first thing that I learned is, don't be using these software tools that that you think are just gonna solve your problem, because it didn't. I learned the hard way. don't do that. the second thing that I learned is I wasn't tracking all of my expenses, and these software's weren't either. there's a lot of FBA fees, a lot of other expenses that I was unaccounted for, and at the end of the year that was a total of $40,000 that I should have written off. and I'm going to do it. I'm gonna amend my, my tax return, which basically means I'm gonna go back to the government and say, hey, I actually didn't make that much. I need to subtract $40,000 and that's going to put twelve thousand dollars of tax savings in my pocket. at a 30 percent tax bracket, $40,000 is about ten, twelve thousand dollars. so I made that massive mistake. so those two mistakes, literally. if I would have caught that and if I would've had to pay my CPA that much money- that's $15,000 that I literally just wasted because I didn't do my bookkeeping properly and I I wasn't tracking the things that I that I should have been tracking. so I it's been a nightmare and I know there's a lot of Amazon sellers that are in the same situation. so what I want to do is break down a new solution and, like I said, it's not a 2x, it's not QuickBooks, it's not fetcher, it's not him ten profits. it's a better tool that's even cheaper and I'm gonna show you. so the first thing that I want to point out is, obviously you're trying to do it yourself. it's a lot of time, it's a lot of headache and hassle. you're gonna come tax season, you're gonna pay your CPA a lot more than you should have, when it should have just been done right, and doing it right isn't going to break the bank. so I'm gonna show you guys exactly what that is. so we're going to come over here and dive in my screen and, as you guys can see, this is a 2x and I just want to show you guys the pricing plans of the different alternative softwares that you could be using to keep your bookkeeping and accounting in tracked, and a lot of people were telling me: oh, use a 2x, so it's gonna cost me 69 bucks a month, depending on how many orders. so between 69 to 139 bucks every single month. and then you need QuickBooks to integrate into that and my plan was 70 bucks. so just those two services was over $150 and that's not including someone doing it for me. I still have to go and think and worry about it and decide: okay, how do I categorize this or how do I do this or how do I do that? it's, it's stressful. so I had those two. and then also there's fetcher or helium 10 profits, which are great tools just to know your profitability, but for accounting purposes and to file taxes, it is not the solution and it's something that you really can't do. I like being able to see the profits on a daily basis. yes, that's great, but don't do it for accounting. so these three services- a 2x, QuickBooks and fetcher- I was using and that's basically like $300. I was paying every single month and my accounting was still not done. I still had bookkeeping to do. I had to go every single week or every single month and do with the accounting and the sad part was I was doing it, so I was paying for these softwares services and I wasn't even doing my accounting. and yeah, I could pay someone to go do it. and let's say: take someone, I hire someone, it takes them two, three hours a week, so let's say eight hours a month at 25 bucks an hour. that's what? three hundred dollars or whatever they, whatever the math adds up to be. so, between these tools, hiring someone to do it, six hundred, a thousand dollars, dish to get my bookkeeping done per month. I could do that. but there's a better solution and it's right here and I'm so glad and you guys can hear my voice. I'm very passionate about this because this is something that I've been stressed out about. I've struggled with it and now I have the solution and you guys need. you need to do this because if you don't, you're going to make the same mistakes that I made and I don't want you guys to make those mistakes. so right here, their solution is called bench. they do all the bookkeeping for you at an affordable price and I'm going to show you guys the prices that they have and it's kind of crazy how they offer what they do. but basically they handle your entire bookkeeping a hundred percent on autopilot. I don't have to think about it. when I wake up every single month I know that it's getting done and at the end of the year they prepare all the profit and loss, the income statements, everything and they send it directly to my CPA and I don't have to think about it and that's why I love it. so what I did is I signed up for the service. I took three phone calls. the first was the discovery- discovery call, kind of explaining my business and what's cool, as they specialize in e-commerce and Amazon FBA businesses, so they know exactly how Amazon FBA fees work, they know exactly how the business is structured and a lot of CPA and accounting and bookkeeping friends don't quite understand that and they specialize in this and it's affordable. so that is the the best thing about it. and right here you can click on the link down below I'll dive into a little bit more depth. but you're basically going to start a free trial, so you get one month free of bookkeeping. they're gonna go back there, do your bookkeeping and they're going to tell you basically kind of where you're at and wh.
Monthly bookkeeping in 6 steps for Shopify sellers
hi, I'm Veronica MARSOC, with 5-minute bookkeeping, and I help Shopify sellers to set up, organize and streamline their financial systems, whether you're looking for DIY done with you or done for your financials. in this video, I'm going to share with you my system for doing your Shopify bookkeeping and six monthly steps. do you want to do your own Shopify bookkeeping? well, while it can be a bit complex, I will break down the steps that you need to follow every month to do your own bookkeeping. if you're a Shopify seller, let's go ahead and take a look at the six monthly steps you should be following every month. the fixed monthly steps for doing your bookkeeping every month are: record, reconcile, review, revise, restrict and remit. let's take a look at each one. first one is recorded. we're going to add transactions to QuickBooks and for many of you are probably familiar with doing that through the bank feeds in QuickBooks. so we'll be connecting QuickBooks to your credit cards, to your bank account, and then you'll be in the bank feeds adding transactions. and it may look something like this when you're going into QuickBooks Online and then you'll work through the transactions in your bank account and then transactions in your credit card. you may also be adding some transactions manually in QuickBooks made, possibly some bills, bill payments and other types of transactions, and we'll also add transactions into QuickBooks by using integrated apps such as a2x, payroll, maybe receipt capture and other things. I highly recommend that you use a 2x2 sync Shopify with QuickBooks Online. a2x is a great app because it allows you to bring over summarized of transactions into QuickBooks rather than bringing in a whole bunch of detailed transactions that can really just clutter up your QuickBooks Online data. check the description box below to learn more about a to X and also to get a 20% discount. the second step is reconcile, and here we want to reconcile our quickbooks transactions to our bank and credit card statements. now you might wonder: why do you do this? well, this is sure that you have no missing or duplicated transactions in your box and it's really the foundation of doing your own box. and the other type of reconciliation is where you reconcile the payment processor clearing account balances. now this is a bit more advanced, but let's take a quick look in QuickBooks and take and see what I'm toking about. ok, so I am in QuickBooks. and when to accounting reconcile- and here's where you can do a bank reconciliation- you will need your bank statement or credit card statement in order to do that. and then I toked about reconciling the clearing accounts in QuickBooks, and these are the clearing accounts for your- your payment processors. so you might see paypal clearing. you may see other balances. perhaps if you use Amazon pay, you might see a balance here, and what these balances represent are basically the timing difference between when the sale is made in Shopify and when you receive the money from your different payment processors. so this should be reviewed and reconciled each month. step 3 is review, and here are wanting to review the books for accuracy. we want to ensure that we don't have any old items in the bank feeds. we want to make sure that all of the accounts have been reconciled. we also want to review the bank reconciliations and make sure that we don't have any old uncleared transactions in the bank reconciliation window, will look for all in the undeposited funds account, will review the profit and loss report for unusual or unexpected balances, and will also review the balance sheet report for unusual and unexpected balances, and will need to investigate any unusual transactions or balances that you might see in the box. once we do this review, the next step is to revise. so, based on the review that we do, we may need to make some corrections. so let's take a look at a quick example of what that looks like. I'm looking at the profit and loss report for May of 2024- this sample company- and we can see that we have a product income, cost of goods sold and then various expenses. and as I'm reviewing the books I notiked that, hey, you know what telephone expense looks higher than normal and I don't see any electricity expenses. so I'll go ahead and click on this amount. it'll allow me to drill down. then I can see what is included in this account and I can see here that this is paying reliant energy. this is actually my, the vendor that I pay for electricity and for gas. so this is actually categorized in the wrong account because it's under telephone. so I need to make a quick correction. so I'm just going to click on this transaction. it will open up the expense transaction and then I will select the correct account- gas, an electric, save and close. and now I will go back to my report summary and I can see now that I am correctly showing my gas and electric expense in the right account category and that now my telephone expense is also correct. that was a quick example of how you revise the books. it's just basically making some Corrections and putting transactions in the right account categories. now let's take a look at the next step. the next step is to restrict, and here what we're looking to do is to close the box, or it's called closing the books in QuickBooks, but it's basically protecting the books for making accidental errors or changes. after we have done all this work of entering transactions, reconciling, reviewing and revising them, let's take a look and see how that's done. well, go ahead and click on the gear icon or the cog icon, go to accountant settings, advanced, and click on the section where it says close the books. make sure that this is checked to close the books, enter the closing date. since we did the books through May 31st, we'll go ahead and enter that date and then you have a choice of allowing changes after viewing a warning or allow changes after viewing a warning and entering a password. so we'll change it to. this will require a password to make any changes. we'll go ahead and enter that password, confirm and save. that basically closes the books in QuickBooks and keeps you from making any accidental changes to up transactions that you have already entered. and our sixth and final step is remit, and since you are in Shopify seller, you probably have some sales taxes that you need to deal with, so you need to collect those sales taxes by all those sales tax returns and we it of those payments to the different sales tax authorities in various states. sales taxes can be a quite a complex issue, so make sure that you check the description box below and look for the link to look at the video in which I explain sales taxes for Shopify sellers. the most important thing you need to keep in mind is that you need to avoid procrastination. so if you want to work on your own books, you need to be committed to working on them every day, and that's why I- you know I'm such a big proponent of 5-minute bookkeeping. just spend five minutes a day, or maybe even just five minute increments, just working on your books and just you'll see that little by little, you'll make some progress in working on your own books. I'm Veronica Wasik, with 5-minute bookkeeping. if you're ready to work with a trusted and reliable financial pro, and check the description box below to learn more about my services and see if we'd be a good fit for working together. if this content is helping you. make sure that you subscribe, ring the bell and give me a thumbs up. check the description box below for all of my free resources and the link to join my facebook community. let me know in the comments if there are any other topics that you'd like me to cover in the future. I'm here to help you.