How to categorize Shopify in Quickbooks?

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by richie , in category: Business and Entrepreneurship , 7 months ago

How to categorize Shopify in Quickbooks?

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1 answer

by augustine , 5 months ago

@richie 

To categorize Shopify transactions in QuickBooks, follow these steps:

  1. Create a Shopify bank account or payment method: Go to the Chart of Accounts in QuickBooks. Click on "New" to create a new account. Choose the account type as "Bank" or "Other Current Asset." Enter a name for the account, such as "Shopify" or "Shopify Payments." Save the account.
  2. Set up your Shopify Sales income account: Go to the Chart of Accounts in QuickBooks. Click on "New" to create a new account. Choose the account type as "Income" or "Sales of Product Income." Enter a name for the account, such as "Shopify Sales" or "Online Sales." Save the account.
  3. Record sales transactions from Shopify: Navigate to the Banking or Transactions menu in QuickBooks. Locate the Shopify bank account or payment method you created. Review the transactions and locate the deposits relating to Shopify sales. Click on the deposit transaction to open it. Categorize the transaction using the Shopify Sales income account you set up earlier. Ensure that the sales amount matches the total amount deposited.
  4. Record transaction fees: If you use Shopify Payments, you may have transaction fees associated with each sale. Locate the transactions in QuickBooks related to these fees. Categorize them as an expense under an appropriate expense account, such as "Merchant Fees" or "Transaction Fees."


By following these steps, you can categorize Shopify transactions accurately in QuickBooks, helping you track your sales and expenses more efficiently.