Loan Calculator Demystified: Your Gateway To Financial Clarity

Loan Calculator Demystified: Your Gateway To Financial Clarity – Do you sell on Shopify? Not sure where to start with your bookkeeping? Check out our full step-by-step guide for everything you need to know!

Are you struggling to manage your finances and your Shopify-based business? We went down this route and found that about 82% of small businesses fail because of poor financial management.

Loan Calculator Demystified: Your Gateway To Financial Clarity

Let us help you to avoid falling into this category. This guide has all the answers, providing an easy way to start bookkeeping effectively with Shopify in 2023. Come on, it’s time to take control of your online store’s income!

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Bookkeeping is essential for managing the financial transactions of your Shopify-based business and preventing cash flow problems that can lead to business failure.

The main difference between online shopping and Shopify stores is that bookkeeping focuses on recording sales, expenses and cash flows, while accounting uses these records to plan the business.

In order to properly keep records in Shopify, first set up a separate bank account for your Shopify store, record all sales and expenses properly, and regularly review reports in Shopify to gain valuable insight into your store’s performance.

The main difference between Shopify Bookkeeping & Shopify Accounting is that bookkeeping is about recording all sales, expenses, income or outgoings. We write this information every day. On the other hand, accounting looks at these records to make plans for our business.

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An accountant can look at how much money we spend on things or how much money we earn from selling things. They use these numbers to help us find ways to increase revenue or reduce costs where necessary.

We want to help you with your Shopify documentation. It may seem difficult at first but these simple steps will make it easy.

To successfully manage your Shopify store inventory, it’s important to choose the right software. Take a look at the Shopify Marketing Questionnaire tool designed with Shopify businesses in mind. This will help you organize your booking process and ensure accuracy in tracking sales, expenses and supplies.

Consider features like automatic data syncing with your Shopify store, integration with other business tools, and reporting capabilities. Compare the different options and read reviews to find the best software that meets your needs.

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Taking the time to choose the right software will make your Shopify store booking process more efficient and less time-consuming.

To make booking on Shopify easier and more efficient, you can automate the process using Link My Books. Link My Books is a software that integrates with Shopify and helps organize your bookkeeping operations.

With Link My Books, you can automatically enter sales data, track budgets, and settle transactions without the need for manual entry. This saves time and reduces the chance of errors in your accounting.

By linking to my affiliate store, you can focus on growing your eCommerce business while slowly saving your money.

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If you are VAT registered, you will need to register for your sales revenue broken down by location and VAT rate.

You must account for sales to UK customers separately from sales to non-UK customers. This is because they charge different VAT rates.

Sales in the UK will incur 20% VAT, while sales outside the UK are considered exports and are usually exempt.

If you sell free products or free money, they must be classified.

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If you are exporting goods outside the UK at the time, even though the status will be exempt for UK VAT purposes, you may consider your tax liability in these countries.

Each country’s laws may be slightly different, so we strongly recommend that you consult with an expert in the country you plan to sail. This may seem like a pain if you are shipping worldwide, however, it is better to be safe than sorry.

Shopify charges a monthly fee for using their platform and billing fees and sometimes you’ll be charged for other things like apps installed by Shopify.

If your business is based in the UK, you are billed for your Shopify store through Shopify International Limited which is a legal entity registered in Ireland.

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Different rules apply depending on whether you provide Shopify with your VAT number. The reason for this is that the provision of services and digital services often depends on whether the seller works on a business (B2B) or consumer (B2C) basis.

The general rule is that they treat their customers as a business if they have a VAT number and a customer if they don’t.

This means that if you are not a Shopify merchant with your VAT number, they treat you as a “customer” under VAT law, which means that any service provided to you must be subject to VAT. .

If you are not VAT registered, you will not be able to reclaim this VAT. Therefore, in that case, the VAT rate you will enter will be “without VAT”.

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If so, you have given Shopify your VAT number so they can treat you as a “business” customer so they don’t add any VAT to their payment and instead, will use another payment policy.

If VAT is charged backwards, it means that the seller does not pay VAT, the customer does not pay any VAT but both parties are responsible for it.

In your Shopify store, you can check if your VAT number has been entered and if Shopify has verified it using the steps below:

Shopify checks your VAT number through the VAT Information Exchange System (VIES) and changes its status from Pending to Confirmed once confirmation is complete.

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You can download one of your monthly bills which clearly shows that VAT has been added.

Currently you are responsible for your ad revenue and any fees that Shopify charges but to get the full benefit, you need to account for your selling price.

Your Shopify store payments will be one of the non-selling payments that you won’t incur a Shopify payment processing fee.

Cost of goods sold is part of the cost of goods sold. For everything you sell, you must pay the price you paid for it.

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Because you can calculate the cost of a large amount of money in one month, and sell it in several months, the monthly P&L is not realistic.

As you purchase inventory, you report it to a bank account that is valuable from your balance sheet rather than your income statement. Then when you sell inventory, you transfer the value of that inventory from your inventory account to the cost of goods sold account in your P&L account.

If you want a better monthly P&L below we will explain 2 options.

To keep your monthly P&L as accurate as possible, you’ll want to record your inventory purchases in an inventory account.

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The account should be set up as a current account type to show up in the appropriate section on your financial statement.

As a commodity account is bought in that account the price will increase indicating that you have an increase in “sales”, in this list.

All of these factors make up the value of your product. The realized price of the item is the price you paid your seller plus the cost of preparing the item for sale. All the costs involved in getting things on the shelf ready to sell well.

You’ll want to look at how many units of each product you sell each month and what the cost of those items are, which will give you your total COGS for the month.

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To calculate your cost per unit, you need to add all the costs we mentioned above in step 1 and divide by the number of units you purchased.

So the price you pay for each item is £3.50 and this is the price you can use to cover your monthly sales.

As you can quickly see this can be quite a bit, dividing your income by destination and tax rate and working with your selling price.

Doing all this yourself by hand and fixing everything takes a lot of patience and time. This is why many Shopify sellers use accounting integrations like My Book Link or work with e-commerce accounting experts like ecommerceaccountants.co.uk.

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If you want to do all this yourself, you need to know what data to use and where to get it. Shopify has great news that we can use.

You can use the Shopify Sales by Ads report to get an overview of your monthly sales by country.

You’ll need to keep your existing Shopify account