Stress-free Accounting for your Shopify business

Shopify doesn’t provide accounting, so you’ll need someone else to do it. It doesn’t have to be you (in fact, it’s probably best that it isn’t). We can help you with Shopify accounting services that won’t require much of your time and cost reasonably.

The most important thing about Shopify dropshipping accounting (or any other type of Shopify business you’re in) is that every transaction is accounted for. A transaction is whenever money or assets go in or out. Every transaction should be tagged with a relevant tax rate and matched to statements from your banks. The next step is preparing reports. Some serve as tools to increase your performance: P&L, profitability, etc. Others have to be prepared and filed as per the government’s request: Estimated Chargeable Income, Tax returns.

We upload Shopify sales, use A2X and Xero to convert them into books, and then develop reports. We submit government filings neatly and on time, so no nasty fines there.

When doing accounting for Shopify, Xero is one of the best solutions. What Xero does is organises transactions, making sure that they are all correctly structured and tagged. You then need to reconcile them against your bank transactions so there are zero discrepancies between your sales numbers and bank balance. After that, reports are built. That’s why Xero accounting Shopify is an important part, but not an exhaustive solution.

Shopify allows you to select a variety of tax rates that apply to your various products. However, they provide no assistance in terms of calculating or filing tax. There’s no advise on various exemptions and tax reliefs you might be eligible for. To prepare Shopify accounting reports required by the Singapore government, such as Estimated Chargeable Income, or Tax return, you’ll need an Accountant. To benefit from various local incentives and pay tax smartly, you need a tax adviser. East river serves as both, developing and filing the necessary reports, making sure you receive the exemptions and checking on the changes and opportunities in the tax regulations.

There are many great Shopify accounting software solutions that you can use. Some of the best ones are Xero and A2X: A2X categorises your transactions and sends them to Xero. Xero reconciles them to your bank transactions and turns them into books. At East river, we provide Shopify accounting integration with both A2X and Xero. Our Chartered Accountants then take the books and prepare accounting reports: management report, tax returns, and profitability breakdowns.