Best Bookkeeping Services for Shopify Store Owners 2024

Running a successful Shopify store isn’t just about having great products or an attractive website — it’s about mastering the financial management that underpins your business.

According to recent data, nearly 90% of small businesses that fail cite financial mismanagement as a primary cause.

For Shopify store owners, the challenges of bookkeeping are even more significant, with fluctuating inventory, multi-channel sales, and ever-changing tax regulations adding layers of complexity.

With an effective bookkeeping solution like doola Bookkeeping, it’s easier to maintain control of your finances, which can directly impact the growth of your store.

Important Features to Look for in a Shopify Bookkeeping Service

Choosing an exemplary bookkeeping service is critical to keeping your Shopify store financially healthy.

Here are the features to prioritize:

• Seamless Shopify Integration: Look for services that sync directly with Shopify, reducing manual data entry and ensuring real-time updates.  

• Inventory Management: Accurate tracking of inventory levels and cost of goods sold (COGS) is crucial for understanding profitability.  

• Sales Tax Automation: With Shopify stores often selling across multiple regions, automated sales tax calculation and compliance are must-haves.  

• Comprehensive Reporting: Access to detailed financial reports, such as profit and loss statements and balance sheets, helps you make informed decisions.  

• Expense Tracking: A good service will simplify expense tracking, especially for advertising and marketing, allowing better ROI evaluation and tax planning.

Top Bookkeeping Services for Shopify in 2024

Here’s a look at the best bookkeeping services for Shopify store owners, ranked for features, integration, and value for money:

1. doola Bookkeeping

doola Bookkeeping is tailored for eCommerce businesses, offering powerful tools specifically designed for Shopify.

Its features include automatic transaction recording, detailed inventory management, and seamless sales tax compliance.

With a straightforward pricing structure starting at $25/per month for bookkeeping software, doola Bookkeeping is a reliable solution that supports growing businesses.

doola Bookkeeping also offers all-in-one accounting plans for seasoned entrepreneurs who are looking for nuanced and holistic services.

2. QuickBooks Online  

Known for its versatility, QuickBooks Online integrates smoothly with Shopify to handle invoicing, expense tracking, and financial reporting.

Plans start at $17 per month, with additional features available in higher-tier plans.

3. Xero  

Xero is a cloud-based bookkeeping solution offering real-time financial tracking and inventory management. It’s ideal for Shopify users needing multi-currency support.

Pricing begins at $15 per month.

4. Bench  

Bench provides personalized bookkeeping services by pairing business owners with professional bookkeepers.

However, it doesn’t integrate directly with Shopify; its tailored solutions for eCommerce start at $349 per month.

5. FreshBooks  

FreshBooks is an intuitive platform for small businesses that offers features like expense tracking, invoicing, and project management.

Shopify integration is available through third-party apps, and plans start at $19 per month.

How to Choose the Right Bookkeeping Service Based on Your Shopify Store’s Needs

Follow this step-by-step guide to choose the perfect bookkeeping service for your Shopify store:

1. Define Your Business Needs: Identify your specific challenges, such as high transaction volumes, multi-region sales, or inventory tracking complexities.

2. Set a Budget: Determine how much you’re willing to invest and prioritize features that align with your financial goals.  

3. Evaluate Integration Options: Ensure the service integrates with Shopify and any additional tools you use, such as inventory or tax software.  

4. Check Inventory Features: Accurate inventory tracking and COGS calculations are essential for stores handling physical goods.  

5. Focus on Tax Compliance: Choose a service that automates sales tax calculations and reporting for multiple jurisdictions.  

6. Review Reporting Capabilities: Make sure the service provides detailed and actionable financial reports.  

7. Test Support Services: Reliable customer support can save you time when troubleshooting or seeking advice.  

8. Take Advantage of Trials: Use free trials or consultations to assess the service’s usability and suitability.  

9. Make Your Decision: Compare shortlisted options based on features, scalability, and customer reviews, and choose the service that offers the best overall value.

How to Do Bookkeeping for Shopify

Bookkeeping is critical for keeping your Shopify store’s finances organized and accurate. Here’s how to do it step by step:

Organize Income and Expenses:

Segment income and expenses into categories such as product costs, shipping fees, and marketing. This organization simplifies analysis. 

Use the Right Tools:

Platforms like doola Bookkeeping and Xero integrate directly with Shopify, automating tasks and reducing errors.  

Reconcile Regularly:

Match Shopify sales data with bank statements to ensure all transactions are accurate and accounted for.  

Track Inventory:

Monitor stock levels and calculate COGS to maintain profitability.  

Stay Tax Compliant:

Automate sales tax calculations and ensure accurate tax filings to avoid costly penalties.  

Generate Financial Reports:

Review profit and loss statements and cash flow reports regularly to track business performance.  

Seek Professional Help:

If bookkeeping becomes too complex, hire an experienced Shopify bookkeeper to manage your finances.

3 Common Mistakes to Avoid When Managing Your Shopify Store’s Bookkeeping

⚠️Overlooking Inventory Costs in COGS Calculations  

Failing to include inventory expenses accurately can inflate your profits on paper. Ensure every cost related to acquiring and holding inventory is accounted for in your calculations.

⚠️Ignoring Sales Tax Compliance  

Not tracking and remitting sales tax can lead to significant penalties, mainly if you sell in multiple states or countries.

Use tools that automate sales tax calculations and reporting to avoid non-compliance.

⚠️Neglecting Expense Tracking for Advertising and Marketing  

Advertising costs can quickly add up. Without tracking these expenses properly, it’s hard to evaluate the ROI of campaigns or claim tax deductions.

doola: Your Partner in Shopify Bookkeeping

Managing your Shopify store’s bookkeeping doesn’t have to be a challenge. With doola Bookkeeping, you get all-in-one bookkeeping solutions tailored to the needs of eCommerce entrepreneurs.

From automated sales tracking to tax compliance, doola Bookkeeping ensures your finances are accurate, organized, and always compliant.

Let doola Bookkeeping handle the numbers so you can focus on growing your Shopify store.

Sign up for a demo today to witness how we can streamline the bookkeeping for your Shopify store. 

FAQs

Why is bookkeeping essential for Shopify store owners?  

Bookkeeping helps track income and expenses, maintain tax compliance, and provide insights into financial performance, enabling informed decision-making and business growth.

What is the best bookkeeping service for Shopify in 2024?  

doola stands out as the best choice for Shopify bookkeeping, thanks to its tailored features for eCommerce businesses and seamless Shopify integration.

Can I manage Shopify bookkeeping on my own?  

Yes, but handling the complexities of Shopify’s financial ecosystem requires a strong understanding of financial management, regular reconciliation, and proper tools like doola Bookkeeping.

How does inventory tracking impact Shopify bookkeeping?  

Accurate inventory tracking ensures proper COGS calculations, helps manage stock levels, and avoids overstocking or stockouts, which can directly affect profitability.

How much does a bookkeeping service for Shopify cost?  

Prices vary widely, ranging from $29/month for essential services like Xero to $250/month for comprehensive solutions like doola’s All-In-One Accounting, depending on your needs and business size.