Shopify Xero Integration: Automating Financial Data

Financial automation is considered one of the most important aspects of any online business. This is because financial errors can have a negative impact on your online store. This is why you need a tool that will streamline these processes. With Shopify Xero integration, you can make the most of your financials.

Xero is used in over 180 countries by more than 3.7 million subscribers and integrates with over 1000 third-party apps. It is seen as one of the most popular tools when it comes to financial management. In this article we will discuss the benefits of Xero and why you need it in your Shopify store.

What is Xero?

Xero is a cloud accounting software that is well-renowned and offers unmatched functionality. One of the primary reasons that this tool is so well-recieved is its ability to be expanded by third-party integrations. From payroll management, reporting, ecommerce support and expense management, to name a few, this tool can reimagine the way you handle the finances of your business online.

Benefits Of Xero Accounting For Shopify

Xero provides efficient accounting processes to your online business with Shopify Xero integration. Integrating Xero will allow you to spend more resources on the backend functionlaity while leaving the business processes to the tool. Simplify the process of tracking business profitability. Following are the benefits Xero accounting offers:

Advanced Shopify Reporting

A tool that allows you to create reports will ensure efficiency and minimise costs. Xero offers chart of accounts that will enable your business and track revenue and expenses in real-time. These charts have a dynamic view of all the changes in your accounts, assisting you in gaining meaningful insights into areas of improvement. From poor shipping calculations to incorrect sales tax rates, Xero will track all of this data to help you stay ahead of the curve.

Accounting Workflow Management

Ecommerce is a fast-paced market that has several moving parts. Business owners that are looking to expand their online store do not want to spend time and resources on managing day-to-day accounting processes. With Shopify Xero integration, you can rest assured while it tracks and manages invoices or journal entries to every sales transaction.

Xero will also track bank deposits by itemising payments and fees and moving the data to the department concerned. All these features allow you to save time on data entry and optimise workflow.

Shopify Taxes

It is common to see Shopify owners incorrectly recording band deposits as revenue. This can have an impact on your taxes payable because all deposits cannot be seen as income. With Shopify Xero integration, you will no longer need to be worried about taxes and how they need to be calculated. Xero will calculate all your transactions throughout the year, while separating the taxation in each transaction. This will help you get an accurate tax amount automatically.

Xero Functionalities For Your Shopify Store

Shopify store owners are looking for ways that can help them keep track of all their transaction and minimise manual efforts. This can become tedious when you have multiple transactions happening on a daily basis. By integrating Xero, following are the functionalities you can enjoy.

Automatic Syncing

It is essential to have real-time tracking for all your accounting processes. Xero will help you automatically sync all your accounts and create daily summaries for each of your accounts. It also creates up-to-date cashflows and manages business performance. Bear in mind, to get the optimal result from your tool, you need to link the correct datasets and accounts. This can be done by integration experts that will help you configure Xero based on your business requirements.

Admin Dashboard

With all your data in a centralised platform for all your accounts, you can easily keep track of how your business is performing, reconcile all your bank transactions against your accounts and automatically export sales data and payment invoices for financial purposes.

Cashflow Tracking

Shopify Xero integration will automatically detect and display your Shopify sales and fees, allowing you to track revenue and profit daily. It also offer a breakdown of costs and profits with the help of the Xero analytics. Keep track of cash flow forecasts to make  inform business decisions.

Steps To Integrate Xero to Your Shopify Store

Integrating Xero with your Shopify store can help you streamline your accounting processes by syncing orders, payments, and other financial data. Here are the steps to integrate Xero with your Shopify store:

1. Go to your Shopify dashboard and log in with your credentials.
2. Click on “Apps” in the left-hand sidebar, then select “Visit the Shopify App Store.”
3. In the search bar, type “Xero integration” and browse through the available apps.
4. Select a Xero integration app that meets your needs and is compatible with your Shopify plan.
5. Click on the app you’ve chosen and review its features, pricing, and reviews. Once you’ve made your decision, click on the “Add app” or “Install app” button.
6. Follow the prompts to grant the app permission to access your Shopify store and connect with your Xero account.
7. Once the app is installed, configure the settings according to your preferences. This may include mapping your Shopify data to the appropriate accounts in Xero, setting up tax codes, and defining synchronisation schedules.
8. Before fully activating the integration, conduct a test to ensure that orders, payments, and other data are syncing accurately between Shopify and Xero.
9. Once you’re satisfied with the setup and testing, activate the integration to begin syncing data between Shopify and Xero automatically.
10. Regularly monitor the integration to ensure that data is syncing correctly. If you encounter any issues or discrepancies, refer to the app’s documentation or contact their support team for assistance.

Note: It is important to keep in mind that a tool like Xero will only function optimally if it is integrated in a proper manner. While the process may seem straightforward, if the correct permissions are not granted, or there are issues with the linking of datasets, Xero may not perform as intended. This is why you may need Shopify Plus agencies or technology solution services to get the job done right.

Conclusion

Xero is by far one of the best options as an accountinf software for your Shopify store. With its simplicity and functionalities, you can automate the majority of your accounting related tasks with a centralised paltform.

While Shopify Xero integration is simple, you do need the help of an expert to properly configure the tools for you. This is where FuturByte comes into play. Our integration experts at FuturByte, an e-commerce development company, will allow you to optimally integrate Xero and ensure that the tool does its intended tasks. Contact us for a free consultation today.