How can I balance my account across multiple payment platforms?

How can I balance my account across multiple payment platforms?

Rodeovideo
Tourist
3 0 1

Is there a way to balance my account like I would a checkbook?  Being that some transactions are paid within Shopify, some with PayPal, etc. how do you check everything off to make sure everything got paid?

Replies 4 (4)

KP_Enterprises
Explorer
60 2 16

So far as I can determine, there is no way todo what you are asking. Shopify tends to bury their fees into the transaction in  way that makes it hard to know just what your true receipts should be and Paypal payments go into your paypal account where, if you are doing significant volume, it becomes difficult to reconcile.
Our work around is to have an account that functions like a receivables account. We also use a company called Bookkeep (We have no affiliation other than being a client) to extract the data for us and post to the correct accounts. They calculate the total of the payments rec'd less refunds, subtract the fees, then post the net to that receivable account (Credit sales, debit AR and Fees expense). Then when the deposit arrives a day or so later, that entry reduces the receivable account (debits cash, credit AR). In the end, the remaining balance should be approximately the equivalent of 1 to 3 days of payments yet to be received, depending on the day of the week. It's frustrating but so far it's relatively close and the deposits are matching the expected amounts.
Good luck

Rodeovideo
Tourist
3 0 1

Thank you for your answer!  It seems very strange that you can't balance your account like a bank account.  Have a great day!  Mark

Rodeovideo
Tourist
3 0 1

I found a way to reconcile my account in a manual way, not like a built in function such as in Quicken.

 

1. Go to your orders page.

2. Click on Export

3. Select All or a Date Range 

4. Select CSV for Excel

5. Click on Export Orders (this option has ALL of the information from each transaction) or Export Transaction Histories (this option has less information per transaction)

 

This will email you pretty much everything about each order in your account within the date range you selected.  When you receive the email: 

 

6. Download the CSV file from the email

7. Open the CSV file in Excel

8. Throw away any columns that you do not need for reconciling the account, and move the columns around to your liking.

9. I went to the Payments Column and highlighted the Manual, Shopify Payments & PayPal Payments in different colors to make them easier to view.

10. I added in a couple columns to my liking to place check marks in as I go through and confirm each order just like reconciling a checkbook in Quicken or Quickbooks.  You can print this out, or you can toggle between your browser tabs open to each account as you like.

 

I hope this helps someone small and new to Shopify like me.  I feel it would be so much easier for Shopify to integrate a Reconciling feature just like using Quicken or Quickbooks.

 

 

LioPin
Tourist
3 0 1

Hey there, 

What you are referring to is called 'store-to-processor reconciliation' - it is important to track net order total of each order and match it against the payout in Shop Pay & PayPal (and from Shop Pay & PayPal to your bank) to ensure no money is lost in transit, and also crucial to close your books at year end for tax.  Since this combines different sources, it is usually done by a bookkeeper/accountant (expensive) or using an automated bookkeeping service (cheaper). 
If you want to do it yourself (very time consuming), you can do the following:
- For Shopify, under orders you can download the orders and filer them for net orders, and then for payment processor, and make a total of net orders per each processor.  
- For Shopify payments, under setting > payments, you can export the Shopify payout report (for order cleared by Shopify). Sum the payments received and deduct the sum of refunds sent, chargebacks and disputes. 
- For PayPal, you can download a summary report under activity --> all reports --> financial summaries -> financial summary --> download report --> Payments received and deduct refunds sent, chargebacks and disputes. 
Hope that helps!