Shopify Sage Integration: Here's How To Set It Up [Guide]
When Sage began life in 1981, Shopify didn’t exist.
Sage founder David Goldman wanted an automated accounting software solution for his business, so he built it himself.
In 2006, Shopify founders Tobias Lütke and Scott Lake didn’t like the ecommerce software available to them at the time, so they built what they wanted themselves.
Both Sage and Shopify were conceived by entrepreneurs that wanted the freedom to customise, automate and grow their businesses.
Does that sound familiar? If you’re here, you probably want similar things for your business.
The great news is that Shopify integrates seamlessly with Sage to give you exactly that. Plus, once you’ve laid that foundation, you can explore some 2021’s most exciting apps and upgrades on offer to take your Shopify biz to the next level. All based on reliable accounts.
In this article, we cover:
- The benefits of cloud accounting and what integrated solutions can do for your business.
- Automation for Shopify sellers in 2021 and what to prioritise.
- Taking your accounts to the next level with A2X for Sage and Shopify.
- Step-by-step Shopify and Sage integration.
- Where to find ecommerce specialists to help you grow.
The Benefits of Cloud Accounting and Integrated Solutions
Cloud accounting software can make small business owners feel a little uneasy. Storing sensitive data in the cloud might seem counterintuitive.
But take online banking, for example. Many of us are comfortable using that in our personal lives. Accounting software is just the next level up, and the security protocols around data today are extensive.
Since you’re either considering Sage for your Shopify business or have already signed up, you’ll probably know a few of the benefits of cloud accounting software. But let’s recap on some of the basic ones along with a few you may not know:
Online software doesn’t need installing or updating.
All your data is automatically backed up, so there is no risk of losing progress or records.
Data is sent automatically from your store to your accounting software.
No need to spend hours manually recording your order information.
Cloud-based is more secure.
Data stored on a computer is vulnerable to viruses and physical theft, and moving your data on a USB or hard-drive can be risky. Whilst the cloud has risks too, there are more barriers in place to protect it. See more about this on Sage’s blog here.
You can see your accounts anytime, anywhere.
Whether you are remote or not, having access to your accounts on the go could come in extremely handy.
You can collaborate with others based elsewhere.
If you have or eventually want to have an accountant or employees based elsewhere, it’s easy to share access with systems on the cloud. And with the COVID-19 pandemic transforming our need to work remotely, it may be best to start this way to protect your business in the long-term.
You can control access levels.
If you do share your accounts with others, you can choose how much they see. This wouldn’t be possible without cloud software, or at least, not without significant manual hours separating information. See more about detailed user access levels with Sage here.
Your dashboard is a visual representation of your financials.
You can set up a dashboard with notices about bills due, cash flow, forecasts and reports so that in one glance you have an idea as to the health of your business.
And one of the biggest benefits of all? There are world-class accounting software options out there designed for ecommerce sellers like you.
No need to create your own from scratch, platforms like Sage Business Cloud Accounting are built around your needs from the beginning of your Shopify journey upwards.
Integrated solutions give you the ability to expand your ecommerce toolkit whilst keeping business operations centralised.
Plus, if customisation is important to you, and you want access to the latest ecommerce apps out there, both Sage and Shopify have got you covered.
Automation for Shopify Sellers in 2021
Lucky for you, Shopify is hot on integrations and automation.
At their 2020 Reunite event, Shopify announced a number of exciting upgrades and apps to help its sellers leverage the latest ecommerce technology available.
In our blog, How to Sell on Shopify in 2022, we delve into how sellers can make the most of these and plan for them this year. Here’s a sneak peek of the 8 ecommerce industry trends predicted for 2021 that sellers should be aware of:
- Digital optimisation is a focus for visibility.
- Augmented reality helps buyers to visualise their purchases.
- Experiences can be highly personalised with customer profiling.
- Chatbots are becoming the new front-of-house.
- Mobile optimisation should be a high priority.
- Payment options are expanding to give customers more choice.
- Headless commerce is helping to solve multi-channel problems.
- Interest in sustainable practices and environmental issues is on the rise.
And the great news is that Shopify has plenty of tools to help you deliver on these.
Why are we telling you this?
Because there are so many exciting integration and automation options for Shopify sellers out there, which either help to solve the problems of shopping online today or enhance the experience for customers.
But these are pointless without fool-proof, accurate accounting systems first. Money is the lifeblood of your business, so the infrastructure managing this has to take priority (and it may not end with accounting software). Once you’ve got your accounting stack sorted, the digital app world is your oyster!
Now that you’ve seen what your Shopify integration journey could look like, let’s go back to the start and get you set up for success.
Optimising Your Accounts with A2X for Shopify and Sage
The best cloud accounting software for your business may consist of more than one app.
By integrating Sage and Shopify, your transactional data is sent to your accounting software automatically, backed up on the cloud and recorded for you. No manual data entry, no time wasted.
There would however, be some tasks still needing manual calculation which may prove time-consuming, especially as you grow.
As a Shopify seller, your bank deposits represent a number of different expense and income lines. Things like fees paid, sales tax collected, reimbursements received, shipping costs - the list goes on. These are not separated for you, so in order to figure out how much profit you’re left with, you will need to work them out yourself.
This is where A2X can help:
By integrating A2X with your Shopify and Sage accounts you will have:
- Summarised journal entries which show you the breakdown of your bank deposits without clogging your accounting system.
- Accounts organised via the accrual method of accounting which allows cash flow to span months. This means that you can see a true picture of your business and make informed financial decisions.
- Payouts matched for you so that reconciliation just consists of confirming these matches with your accounting software.
- Accounts and taxes mapped once by you and then applied automatically every time - just set and forget.
- Accurate accounts with nothing missed. Eliminate the risk of human error from manual calculations and leave it to the computers designed for repetitive tasks.
Start your free trial of A2X for Shopify today and see how it can benefit your business.
Shopify and Sage Integration: Step-by-Step
A2X is a connector app which sits between your Shopify store and Sage account. To integrate the three, we need to follow a few simple steps.
A2X, Shopify and Sage integration:
First up, let’s sign up for A2X.
- Head to A2X for Shopify to start your free trial.
- Click “Try A2X for Free”.
- You can create your new account via Google (also Intuit or Xero).
- Once you have entered your details and created a new account, you should be sent to a dashboard like this:
Now, let’s connect Shopify.
- Select “Continue with Shopify”.
- Input your store name and click “Connect”.
- You will be sent to a page like this to grant permission for the connection:
- Click “Install app” to grant permission. You will be sent back to your A2X dashboard where Shopify transactions will begin to show and look something like this:
Next up, we want to connect to Sage.
- Navigate back to this screen and click “Connect to Sage”:
- Once you have confirmed that you wish to connect to Sage, you’ll be asked to select your region:
- You will be taken to a Sage login page, enter your details and this should be your next screen:
- You may see a pop-up about enabling multi currency - if you wish to do this and need help, check out this tutorial. Otherwise, you’ll be back in your A2X dashboard:
Lastly: Accounts and Tax Mapping.
This is an optional step but by using this feature, all your Shopify transactions will be coded automatically in Sage, making your reconciliation process even quicker.
As part of this setup, A2X makes suggestions for your Chart of Accounts which you can use or customise.
To get started mapping, follow these steps:
- Navigate to Accounts and Taxes:
- A2X can create accounts for you, just fill in the line items and select “Save Mappings”:
- You can access your various accounts by clicking the “x” to open up a drop-down menu of options:
NB: If you create new accounts after you have connected A2X, you’ll need to refresh your cache in Settings > Connections via A2X.
- You can also use the drop down “x” to select tax rates from your accounting system, too.
Once you’ve saved your final mappings, you’re all set! And don’t worry, you can change any settings at any time.
For help with other aspects of setting up A2X for Shopify, check out our support centre.
Need a Little Extra Help?
Depending on the needs and priorities of your business, you can tailor a tech stack that will help propel you to ecommerce domination.
If you’re at the beginning of your ecommerce journey, or at the stage where you’re keen to explore automation to grow, we recommend getting help from an accountant to set you up for success.
They will help you ensure that you get the most out of the minimum number of integrations, and don’t waste a cent investing in your future.
And, if you plan to grow and even sell overseas, VAT and sales tax will need to be on your radar. These are not straightforward for ecommerce sellers, so having a specialist to help you could prove invaluable.
Don’t have an ecommerce accountant? Find a specialist from our directory here.