hey it's patti scharf CPA and co-founder of catching clouds the leader
in e-commerce accounting and today is a very exciting day today I'm going to
tell you about a brand new tool that just came out called a A2X for Shopify all
right so if you watch my channel at all you know that I love telling everybody
about brand new tools that make your life easier if you're an e-commerce
seller or if you're an accountant who loves an e-commerce seller basically
ecommerce accounting is really hard and when there are tools that can make it
easier I will shout that from the rooftops oh this is not a paid
advertisement I don't get any kickbacks for any of this stuff
and in fact I'm going to give you some information at the end of this video on
how you can figure out the Shopify accounting stuff without even paying for
a tool although I don't know why you would do that once you know about A2X for
Shopify so let me just hop in and tell you about it so a A2X for Shopify is the
best thing to come out for ecommerce sellers since A2X for Amazon really not a
coincidence that they both make that the one company makes both of the same tools
because they understand ecommerce sellers they understand how the data
works and so they are solving the same problem that they solved for Amazon only
on the Shopify platform okay so if you don't know what I'm talking about with
with Amazon go watch this video it's got all the kind of ins and outs of why I
love A2X for Amazon now let me talk about why it's such a time-saver for Shopify
Shopify is a platform shopping cart hopefully you know what it is your
chances are you're watching this because you have a Shopify store but basically
they make it really quick and easy and inexpensive to start selling online you
can like throw this website up with hardly any work at all you list your
products and then you can just start except just
start selling you can start selling and accepting payments and all that stuff
okay Shopify has Shopify payments is their processor and then you could also
use any other processor you want PayPal fat merchant whatever it doesn't matter
so everybody starts getting online and selling things and usually accounting is
an afterthought maybe a few months down the road people are like wait a second I
actually don't understand like how much money I have like I need a P&L profit
and loss statement I need to know what's going on my bank is asking for one I
need it to do my taxes at the end of the year or whatever and people realize that
they need to do their accounting so when you're selling online you don't want to
go into your accounting software and enter in transaction by transaction it's
annoying it's time-consuming it's a waste of time
so ecommerce sellers in particular like there's got to be an app for that
so they start looking around for an app and all the apps that are out there
basically they push in data order by order okay so when you when you're
selling like five orders a day you're like whoa this is magic I just suddenly
have these orders in my accounting system and I didn't have to lift a
finger this is amazing but then what ends up happening is because Shopify is
so easy to use if you are a guru at marketing your sales can go through the
roof kind of overnight we know lots of sellers who just within six months they
go from like zero to a hundred thousand dollars a month just like that and
they're selling thousands of orders in a month so what used to be magic when you
would see just you know yay five orders that I didn't have to type in myself
turns into thousands you kind of don't know what to do with that it'll crush
your system possibly and or it makes it kind of impossible to reconcile because
what lands in the bank is just a lump of a whole bunch of orders and you can't
match them up to what is actually in your accounting system so it's super
duper I know now recently I've seen a kind of a
proliferation of apps come out where they're like oh yeah we know that that's
a problem and so we batch the orders each day we just like kind of total them
up for the day and give you a batch and that's okay
ish but it doesn't actually reconcile to what lands in your bank account so you
still can't reconcile you still don't know that you're getting paid for
everything that you sold which is the big problem with the county you need to
be able to trust that your numbers are actually verifiable that they're
accurate and you're not missing anything okay now add to that unlike Amazon where
when you're selling on Amazon your money comes in from Amazon it's all one lump
sum and it's wonderful in Shopify most people have at least two payment
processors and it's because if one payment processor I don't know you
forget to pay your $39 bill for the month they'll just like hold on to all
your money and you can't sell any more you don't want your sales to stop so you
have a second payment processor just in case as a backup right so most people
have Shopify payments PayPal whatever as their their payment processors but if
you've got multiple payment processors now when you're selling online you have
some of your money coming in from Shopify payments some of your money
coming in from PayPal some of your money coming in from something else and how
are you supposed to track all of those back to the sales that you made at
Shopify so here enters a 2x4 Shopify this is what they do it's super amazing
not only do they batch the information they will batch it in the same way that
Shopify payments does for example so you sell a bunch of stuff on Shopify and
then you get the total of what was actually sold it'll they'll split it out
so that if you sold some of it in March and some of it in April they'll have two
separate invoices so that when there's one deposit you can
say oh this deposit is made up of the sim boys and this invoice done and so
your accounting is right it's clean it reconciles you there's no confusion over
matching stuff up you don't have the all the individual orders just crushing your
system it makes it quick and easy and painless and I love it so much
okay now just a couple of last comments about how the A2X for Shopify app works
the the setup and everything it's really really similar to A2X for Amazon but the
thing I want to tell you is that Shopify matched up with Shopify payments is
really exactly like Amazon it ties to the penny every time the accounting is
right like everything is like works swimmingly it's beautiful the one funky
thing and this is kind of beyond a to excess control is if you're selling
stuff using like PayPal or one of the other merchant accounts like Shopify has
no control over that system so even though the data is accurate you'll have
to reconcile that with PayPal however you reconcile PayPal okay so that may be
a little bit tricky but I'm just so happy that I can trust the information
and I know it's going to get me this much closer to having good stuff also
something to know I know that people are going to ask this if I forget to tell
you but it works both with QuickBooks Online and with Xero and I don't know
I've been using it for a few months now we're doing the beta on it and it works
pretty slick all right those of you stuck to the end so you could find out
how to do it without using a tool I actually have this course accounting for
Shopify it goes through beginning to end how to pull all the information and
manipulate it so that you can get to a good end result I'm also going to update
it though to include information for how to setup and use A2X for Shopify because I
think that once you do it a few times you're going to realize that it's a
colossal pain in the butt and that you're gonna want a tool to
automate this for you so I'm gonna have all that information in there hopefully
by the end of this month also I'm going to have a discount code
down below so that you can take a little bit off just because I am happy that
you're watching my videos and oh one last thing before I go
Scott and I are going to be speaking at scaling new heights next week so if you
are an accountant come by and check us out we're going to be talking for about
I don't know 100 minutes or something like that on e-commerce accounting sales
tax all that kind of stuff that's really important for people who are selling
online and then we're going to jet from there over to zero cotton and spend time
over there so if you're in either of those places and you want to come up and
say hi please do I love to meet people who are watching my videos and you can
ask me whatever kinds of questions you've got or if there are some videos
you want me to make you know I am always up for ideas so I think that's it for
today I hope you like my video if you did please like comment and share if you
haven't already please subscribe and I'll catch you later