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Understanding Your Sources of Financial Data

The Complexity of Modern Business Transactions​

At Bookkeep, we streamline accounting by automating entries that traditionally required manual input, a process both time-consuming and prone to errors. Today’s businesses often operate across multiple sales channels, including buy now, pay later services. This diversity leads to financial data spread across various systems, necessitating a clear understanding of data origins and the integration of necessary applications.

Example: Multi-Channel Sales and Payment Processing​

Shopify and PayPal Integration​

Consider a typical scenario where a business uses Shopify for online sales and PayPal for payment processing. This setup results in multiple types of financial data:

  • Sales data from Shopify: Direct sales transactions processed through Shopify.
  • Deposit and fee data from both platforms: Transactions processed through Shopify and PayPal include respective fees and deposit information.

Connecting PayPal and Shopify to Bookkeep

Because PayPal processes some transactions, it incurs additional fees not captured solely by Shopify. Understanding and connecting both the PayPal and Shopify apps in Bookkeep is essential to capture the complete financial picture.

Automating Financial Postings​

With Shopify, they can automate posting their sales daily, COGS daily, and any deposits which were sales processed by Shopify.

Automating Shopify Postings

When connecting PayPal, this customer would want to utilize the PayPal express checkout fees and the PayPal deposit journal entries. The Express Checkout Fees posting is necessary as the Shopify store is having some sales processed by PayPal, but Shopify does not know or capture the processing fees from PayPal. Additionally, the PayPal deposit posting captures any transfers of money from the customer's PayPal balance to their bank account.

Automating PayPal Postings

Managing Complexity in Ecommerce​

The diversity of sales channels and payment processors in the ecommerce landscape adds layers of complexity to financial management. Bookkeep helps simplify these challenges by enabling efficient connections to multiple apps, ensuring all financial data is accurately captured and reported.

If you need assistance determining which apps to connect or managing complex sales environments, please reach out to [email protected] for expert help.