I have two levels of taxation for my state – 2.25% for for food items, and 10% for nonfood. Yet when I run reports, Shopify insists on giving me 2.25% and 10% AND 6.5% AND 1.0%. I don’t need these. How can I simplify? Additionally, most months the Shopify monthly report figures do not correspond to the Quickbooks figures. Why?
@60301,
This is common with Shopify’s tax reporting. What is happening is that Shopify’s native tax engine breaks down the total tax rate into its individual municipal, county, and state components (for example, your 10% rate is actually being read as a 6.5% state rate + a 1.0% county rate + a 2.5% city rate). You can’t currently force Shopify’s default reports to just show the flat 10% or 2.25% aggregates. The most reliable workaround is to export the raw tax report as a CSV and run a quick pivot table in Excel to group by the total combined rate.
As for the Quickbooks mismatch, this is almost always caused by how the two systems handle the timing of refunds and unfulfilled orders. Shopify records sales on the day the order is placed, whereas many default Quickbooks syncing tools log the revenue on the day the payment is cleared or the order is fulfilled. If an order happens on the 31st but clears on the 1st, or if a refund is issued across months, the two reports will inherently be out of sync. You’ll want to check if your Quickbooks integration is set to accrual vs cash basis to help narrow down the discrepancy.