Shopify is an online e-commerce platform that is used to build online stores to sell products. They do not offer the service of doing your bookkeeping on your behalf. Whether you are making five figures or just a couple hundred dollars a month, it is important to keep track of all your business’s finances, especially come tax time.
Once you decided to begin your business and created your Shopify website, you may not have even considered the bookkeeping aspect. Before long, you probably realized the bookkeeping process for Shopify users can be complicated. You need to track your sales, most likely from multiple payment processors (like PayPal and Stripe), along with any returns, chargebacks, fees, etc. You should also always be aware of your inventory levels; you do not want to run out and not be able to deliver to your customer.
The good news is there are bookkeeping software options available that can connect with your Shopify account, such as QuickBooks Online and Xero. Even with these automated programs, there are still steps you need to take to make sure your books are accurate, including reconciliation. Depending on your annual sales, it might be best to outsource the task to a bookkeeping service like Remote Books Online.