Reliable Shopify bookkeeping: revenue, VAT and reconciliations

A Shopify store generates many transactions, and each transaction can contain several elements: product sales, shipping, discounts, VAT at different rates, and payment fees. In addition, there are returns and refunds that must be accounted for correctly.

Many webshop owners start by recording transactions manually from Shopify's reports, but this quickly becomes unsustainable as volume grows. We help you set up an automated and correct bookkeeping process.

For sales to consumers in other EU countries, first establish which country’s VAT applies. This depends on the type of sale and the conditions for any exceptions. One Stop Shop (OSS) is an optional arrangement for reporting and paying foreign VAT on eligible sales; local VAT registration may be an alternative. See the Danish Tax Agency’s guidance on consumer sales in the EU.

We help you to:

• Set up correct VAT rates in Shopify for each EU country
• Post sales divided by country and VAT rate
• Report correctly via One Stop Shop
• Handle sales to countries outside the EU (exports, which are generally zero-rated for VAT)

For product-based companies, correct inventory accounting is essential for accurate accounts. We ensure that:

• The inventory value is calculated correctly at the end of the period
• The cost of goods sold (COGS) is calculated correctly, so you know your real gross margin
• Write-downs are handled if goods lose value
• Purchases and inventory adjustments are recorded continuously

We set up automatic transfer of Shopify orders to e-conomic via integration tools like Storebuddy. This means that each order is automatically recorded with correct revenue, VAT, shipping and any discounts.

The result is accounting data that stays up to date – without manually entering each individual order.

If you sell via several channels - e.g. Shopify, Amazon and a physical store - we bring the data from each channel into one accounting system, with a clear breakdown, so you can see performance per channel. It gives you insight into where your business performs best and where there is potential.

We deliver monthly reporting adapted to e-commerce, including:

• Revenue per channel and market
• Gross margin and cost of goods sold (COGS)
• Shipping and return costs
• Liquidity overview and cash flow
• Comparison with budget and previous periods

Do you run a Shopify store and want to keep track of the bookkeeping? Contact us for a no-obligation conversation about how we can help you automate and improve your Shopify bookkeeping.

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