How to Setup Shopify with Bookkeep to Automate Shopify Accounting
To start taking advantage of Bookkeep's automated journal entries for Shopify, the first step is to establish a connection with the Shopify store from which you want to import data. In the following detailed guide, we will walk you through the setup process to ensure that you are well-prepared to begin using this feature effectively.
1. Add Shopify App
To start the installation process, first go to Connections -> Available apps and locate the Shopify icon. From here, click on the Shopify icon which opens a new modal.
2. Install via the Shopify app store
Clicking on the Shopify icon above will open a pop-up window shown below. After clicking "Connect now", you will see a new tab open which is the Bookkeep app listing within the Shopify app store as found here: https://apps.shopify.com/bookkeep-com-daily-summary-e-commerce
Below is the Shopify app store listing where you will click Install (you must be logged into Shopify at this point as well):
3. Install App
Once you click “Install” above from Bookkeep’s Shopify listing, you will be sent to another Shopify page to approve the necessary permissions for Bookkeep to sync your financial data. You will again click “Install” on this page shown below:
4. Access Shopify App Connection
Once this is completed, the Shopify app connection will be accessible on the Connections/My Apps page as shown below:
5. Map Data to Accounting Platform
Once you have successfully connected your Shopify store to Bookkeep, the next step is to map the data from your store to the appropriate accounts in your Accounting Platform, such as QuickBooks Online.
To begin mapping, navigate to the app connection and click "Setup" to expand the section with links to "Map" as shown below. It's important to note that this mapping can only be completed once you have successfully connected an accounting platform to Bookkeep.
By setting up this mapping correctly, you can ensure that your financial data is accurately recorded and categorized in your accounting system, providing you with clear and organized financial records for your business.
A unique feature Bookkeep offers for Shopify is called Segmenting activated by clicking "Segment by sales channel" in the image above. When clicking "Segment by sales channel," you will see Bookkeep start scanning your Shopify store for sales channels, apps, and POS locations where you can segment and group for consolidated or split reporting in your accounting platform.
6. Segmenting by Sales Channel (Optional)
This step is relevant for those who clicked "Segment by sales channel" in the step above: Segmenting is not required and is an optional feature which enables advanced reporting and grouping of sales channels, apps or POS locations.
Some customers like to use segmenting in order to group or split their various Shopify channels into separate journal entries for COGS and sales. However, if you choose to not segment your journal entries by separate channels you can skip clicking Segment by sales channel and continue mapping as further discussed below.
Segmenting can be repeated if you have more channels you would like to post separately. If you choose to Segment by sales channel, you will see the following journal entry options below:
A note on Shopify segments: The image above illustrates an important distinction - the lower segment only displays ecommerce and COGS journal entry options, while the parent segment at the top shows ecommerce, payments deposit, and COGS journal entries. This difference exists because the Segmenting feature allows you to separate specific channels into individual journal entries for cost of goods and sales only. Since Shopify payouts are not channel-specific, they are mapped only once at the top level.
Shopify Ecommerce Journal Entry Mapping
7. Configure and Map
This journal entry consolidates the previous day's sales into a single summary entry. When configuring the mapping at the parent level (not the lower segment level), click "Map" to select the specific accounts in your accounting platform that will receive financial data from Shopify. You can repeat this process for the COGS and deposit journal entries if you plan to use them. Learn more about the various journal entries.
After completing the necessary mappings to automate your Shopify accounting, you can activate the journal entry by setting it to ON (indicated by a GREEN slider, while GRAY indicates the automation is OFF). This will begin posting daily journal entries starting the next day.
As shown in the image below, I have used "Segment by sales channel" to break out specific Shopify channels into their own journal entries. Note that I have turned ON the ecommerce option for both the parent and the segmented channel. This configuration means I'll post one journal entry for the specific channels I selected in the segment, while any channels not included in the segment will post through the parent level mapping—ensuring no data is duplicated. I've also activated the payments deposit at the parent level since deposits are not channel-specific. Additionally, I have chosen to keep the COGS journal entry OFF for both the parent and segmented channel.
8. Filter by Channel (if using “Segment by sales channel”)
When configuring the mappings at the non-parent segment level (for those who activated this “segment by sales channel” feature discussed earlier), you'll notice a "Filter by channel" dropdown at the top of the mapping view. This dropdown allows you to select one or multiple sales channels or POS locations that you want included in this specific segment. You can create as many "Segment by sales channel" configurations as needed to post different channels separately into your accounting platform.
9. Finalize and Automate
Once you've mapped the necessary journal entry templates and activated them (set to ON), you're all set! Journal entries will begin posting to your accounting platform the next day.
If you have any questions, please contact [email protected].