Many sales platforms such as Shopify can be linked to the Bookkeeping software of your choice like Xero. These integrations can be incredibly helpful, saving time while keeping an accurate record in your bookkeeping software, however a few small changes in their setup can make the world of difference in the result.
Setup
Before starting your sales and/or payment software, it can help to know who will be using it (yourself, your accountant or any other members of the business). Some sites will allow you to add a separate login for each user- some as administrators (who can edit things in the account) and some as viewers (who are only able to view what has happened in the account, without being able to change anything), for these sites it can be much easier to share access as each user will have their own login. However with sites that only use one login, organizing various authorizations can make using the account itself much easier for both the client and accountant.
With most sites now needing 2FA (2-factor authentication) to access is a must, apply it immediately to your account and any users who have access to your e-commerce site.
VAT
When listing products on sales software, the first step is to ensure all products have accurate VAT rates listed. This will also apply to countries, making sure to have international sales set as having no VAT. Although it can take a while to setup, making sure each sale has the correct VAT before integration means that once the connection has started invoices will be much quicker to check and reconcile.
Regular Checks
Errors, though rare, can occur at any time. To mitigate their impact, conduct frequent reviews of accounts and transactions to quickly address issues. When importing sales invoices, ensure those without VAT have reasons clearly stated in your bookkeeping software (e.g., zero-rated products or international sales). Some platforms automatically attach this information, while others may require manual input. Adding this data manually is an excellent opportunity to spot errors, enhancing general checks and efficiency.
Enhance your e-commerce business by linking platforms such as Shopify with Xero, guaranteeing precise bookkeeping and proper VAT management. Consistent reviews and a well-planned setup can result in a more seamless and efficient operation.
If you require further assistance or guidance, feel free to reach out to us today. We collaborate with e-commerce entrepreneurs like you and are here to help make your journey more streamlined!