Integrating Shopify with Xero. Step-by-step instructions using A2X
You have your Shopify store, and your accounting software Xero – and now you’re looking to integrate the two. No problem. This how-to guide includes step-by-step instructions on how to sync them up – including using an accounting connector app.
“No! Not another app to add to the mix!” we hear you say. But, it’ll be worth it, promise.
This guide will take you through how to easily integrate A2X with both Shopify and Xero and why your e-commerce business will benefit tremendously from using an accounting connector.
Xero and Shopify
First, let’s start by connecting your Shopify store and Xero, so your sales are automatically imported to Xero.
A few key things to note before you start: Xero only imports fully paid orders – one invoice for each order. It will create an invoice for an order, with the payment recorded against it (you’ll see the Shopify order number is used as both the invoice number and reference). Refunds are imported as credit notes, and the refund payment gets recorded against the credit note.
Integrating Shopify with Xero:
Remember how we said above that Xero will import a payment for each individual order every time you make a sale in your Shopify store? You can only imagine how much data that creates, even for very small businesses. This is where using an accounting connector app is a smart move.
A2X for Shopify will automatically import a summary of all your Shopify transactions into Xero – sales, fees, refunds, other adjustments. It then reconciles those transactions against the Shopify payments in your bank account, so that you know everything has been accounted for accurately.
To connect A2X, Shopify and Xero:
- A2X uses Google for account login and security, so the first thing you need to do is set up a Google login to A2X using your email.
- Go to a2xaccounting.com/shopify
- Click ‘Sign Up Free’
- Click ‘Sign in with Google’
- If you already have a Google login, don’t enter it here. Instead, click ‘Create an account’ and click ‘Use my current email address’.
- You’ll be prompted to fill in your personal details, asked to agree to Google login terms – and then you’ll be ready to go!
- The next step is to connect A2X to your Shopify store.
- In your A2X account click the green ‘Connect to Shopify’ button.
- Add your Shopify name when prompted and click ‘Connect’.
- You’ll be redirected to your Shopify store and asked to log in and grant A2X permission to connect – just like when you were connecting Xero to Shopify.
- Once permission is granted, you’ll be redirected back to A2X and your first pay-outs will begin to import – it usually takes 10-20 minutes to populate your account. For larger Shopify stores, the whole process can take several hours to complete.
- Now you need to connect A2X to Xero.
- This part is easy – when you sign up with A2X, you’ll be given an option to connect to your accounting software. Click ‘Connect Now’ with Xero. You’ll need your Xero login credentials handy.
- Follow the instructions on-screen to complete the connection, and when done, you’ll be redirected back to A2X.
- If you go to the ‘Connections’ section of your A2X dashboard, you’ll be able to see whether the connection has been successful.
- Lastly, you need to set up your accounts.
You can set up the account and tax mapping to your accounting software so imports will arrive already coded and ready to reconcile – saving you a lot of time.
The Accounts and Taxes feature allows you to map your Shopify pay-out transactions to your accounting system. It does this by accessing your Chart of Accounts or by creating accounts specific to Shopify transactions directly from A2X in your accounting system.
- You can set the accounts that the typical Shopify transactions will be coded to in the ‘Accounts and Taxes’ tab on your A2X dashboard.
- To choose your Chart of Accounts, access your accounts in Xero by clicking the ‘x’ next to each account in A2X, and selecting from the drop-down menu.
- Click the ‘Save Mapping’ button at the bottom of the page, so your account mapping will now apply to your pay-outs consistently.
Note: If you create new accounts in your accounting software after connecting A2X, you will need to refresh your Cache in ‘Settings and Connections’.
Three’s a party
Accounting is complex, no doubt about it. When you add the additional complexities of e-commerce – the sheer amount of financial data involved – as well as any inexperience you might have managing the financials of a business, accounting can become just too hard.
Here’s why, for a Shopify e-commerce seller, investing in an accounting connector is just as important as investing in good accounting software like Xero.
Individual orders vs summarised
Importing individual orders into your Xero account will clog up your accounting system, make reconciling an all-consuming nightmare, and stunt your ability to scale your business. A2X generates summarised statements that are matched to each Shopify Pay-outs summary, ensuring accurate reconciliation each month.
Save time reconciling
A2X can automate the reconciliation process into a few button clicks – turning what took you hours into a few seconds. Why waste time and energy on something you don’t have to?
This one’s a biggie. Think of A2X as a bridge, providing the way for all your stores data to file nicely into Xero. This ensures your business has reliable and accurate financial data, which is essential to scaling your business.
Benefits of accrual accounting
Without A2X, Xero will import fully paid orders instead of importing transactions as they occur. Accrual accounting reflects that income and expenses generated in one month can carry over into the next month or even longer – a much more accurate picture of overall cash flow. This is information that will help you make informed business decisions, like when to develop a new product, switch suppliers, or double down on marketing spend.
When three become one
At the end of the day, all you want as an e-commerce store owner is to work smarter and more efficiently, so you can focus on what’s important in your business. Shopify, Xero and A2X each play an important part in one seamless – and awesome! – automation. You’ll not only save time – and any number-induced headaches – but you’ll also be setting yourself up for success with financial data you can rely on. Happy syncing!