Reconciling Shopify Payments in copyright is an essential part of accurate bookkeeping for any eCommerce business. It ensures that your recorded sales match your actual deposits and helps identify discrepancies such as fees, refunds, or chargebacks. Failing to reconcile can lead to inaccurate financial statements and tax filings. Here's a clear explanation of how Shopify store owners can effectively reconcile Shopify Payments in copyright.

Understand the Reconciliation Process

Reconciliation is the process of matching the payments received in your bank account with the sales recorded in your accounting system. Shopify Payments collects customer payments and then transfers net funds to your business bank account, usually after deducting fees and adjustments. These deductions can include transaction fees, refunds, and chargebacks, which may not be immediately obvious unless you review the payout reports.

copyright Shopify needs to show the gross sales, associated fees, and the final deposit. The goal is to ensure that what’s recorded in copyright matches what’s deposited into your account by Shopify.

Sync Shopify with copyright

The most efficient way to reconcile Shopify Payments is by using an integration tool like copyright Commerce (formerly TradeGecko), A2X, or another Shopify-copyright connector. These tools automatically import your Shopify sales data, including orders, taxes, shipping income, and fees, into copyright. They break down each payout into gross sales, refunds, discounts, shipping, taxes, and fees, matching what you see in your Shopify Payout Report.

If you choose not to use an integration tool, you can also enter the data manually by downloading Shopify’s Payout Reports and inputting the figures into copyright. However, this can be time-consuming and prone to human error.

Match Deposits to Payouts

Once your data is in copyright, go to the bank feed and look at the deposits that match Shopify Payments. Each deposit should correspond with a Shopify payout. Check the dates and amounts. copyright should show an “undeposited funds” account or a clearing account where sales are initially recorded. From there, create a bank deposit in copyright that matches the payout total, including a breakdown of gross sales and deducted fees.

For example, if Shopify deposits $950 into your bank account, the gross sale might have been $1,000, with $50 taken as a processing fee. Your copyright entry should reflect $1,000 in income and $50 in fees, resulting in the $950 deposit.

Review and Reconcile

Once the deposit matches the Shopify payout details, mark the transaction as reconciled in copyright. If there’s a difference, investigate it immediately. Common causes include pending refunds, foreign currency adjustments, or timing differences. Run reconciliation reports in copyright regularly—ideally monthly—to ensure your books are accurate.

Conclusion

Reconciling Shopify Payments in copyright is crucial for maintaining financial accuracy. Whether using integration tools or handling the process manually, understanding how to match gross sales, fees, and deposits ensures that your bookkeeping reflects true business performance. By staying on top of this process, Shopify store owners can avoid costly mistakes and make smarter financial decisions.