Improving Your Integration Experience with A2X for Shopify
For businesses looking for a more specialised approach to accounting and bookkeeping, A2X is a great choice. The ecommerce accounting app is tailored for Shopify and integrates with Xero. Unlike some syncing apps, A2X interprets and summarises your transaction data, which can help to avoid overwhelming your Xero account with surplus data and simplifies the reconciliation process. If you have experienced some of the limitations and frustrations of Xero's Shopify integration we outlined in a recent article, you may be happy to read below how the A2X app can provide a more specialised integration.
Benefits of integrating A2X, Shopify and Xero
A2X is a popular accounting integration tool designed to work with both Shopify and Xero. Integrating A2X with Shopify and Xero can provide benefits for businesses by automating the reconciliation process between Shopify sales and Xero accounting. A2X eliminates the need for a lot of manual data entry, reducing the risk of errors and saving valuable time. This automation also helps financial reports in Xero accurately reflect sales, fees, and refunds from Shopify, for more precise financial statements. A2X Shopify integration helps businesses get a clearer audit trail, better data, and real-time visibility of financial performance. When these benefits are leveraged correctly by a bookkeeper or accountant they can improve overall efficiency.
1. A2X automates the process of accounting for e-commerce businesses. It calculates and posts your Shopify sales data into Xero as Sales Invoices matching the Shopify Payments payouts, including supporting multiple Shopify stores. As a result this saves time and reduces manual data entry errors.
2. A2X splits Shopify sales by payment gateway, creating separate Sales Invoices in Xero for each payment gateway on your Shopify store, such as Stripe and PayPal. This helps simplify the reconciliation process in Xero, particularly when using payment gateway clearing accounts.
3. A2X can break down Shopify sales fees, refunds, and other expenses associated with each transaction. A2X can categorise and account for these fees correctly in Xero. This level of granularity can be essential for understanding the true profitability of your products or services.
4. A2X supports the use of Tracking Categories in Xero. Therefore, Shopify sales can be split into channel, product type or locations and pushed into the corresponding Tracking Category in Xero (if you have it setup) providing fabulous insights into your more successful categories.
5. A2X can split Shopify Sales by Country and push that data into Xero if you want. Some clients have set up separate Sales accounts in Xero for different countries so they can see country sales performance at a glance on their Xero financial reports.
6. A2X can also deal with multiple currencies. If you accept foreign currencies in your store, A2X can handle the conversion to your main currency in Xero and ensure that your financial records in Xero reflect the correct amounts.
7. A2X simplifies the reconciliation process between your Shopify payments and your bank deposits by providing detailed information on each transaction. This makes it easier to match your bank statements with the corresponding sales data, ensuring that all transactions are accurately recorded and accounted for.
8. A2X allows for customizable mapping of Shopify sales into different sales accounts in Xero. This means you can set up specific rules for how different types of income and expenses are categorised in your accounting software.
9. COGS and Inventory can also be automatically recorded in Xero based on the products sold in your Shopify store. This is an optional setup so if you are already using inventory management software to post your Cost of Goods Sold entries, then A2X will not interfere with your current processes.
10. A2X is built to handle high volumes of transactions, making it suitable for businesses of various sizes, from small startups to large enterprises. We have supported clients with tens of thousands of Shopify orders flowing through their A2X account.
11. The interface of A2X is designed to be user-friendly and intuitive, making it accessible for business owners and accountants with varying levels of technical expertise.
12. A2X is designed to comply with accounting standards and best practices. It also employs security measures to protect your financial data.
The best Shopify Xero integration option
Accurate bookkeeping is the cornerstone of a successful business. Shopify Xero integration, coupled with A2X, helps to ensure that your finances are well-managed and organised. By automating much of the accounting process, A2X saves you time that you can use to focus on other aspects of your business. Whether you're a budding entrepreneur or a seasoned business owner, the best way to integrate Shopify and Xero is with A2X, providing the foundation for smart financial decisions. Integrating software and leveraging the benefits can be tricky, if you want further advice get in touch with our Online bookkeeping team and we can help guide you through the decision making and setup process.