 QuickBooks Online 2023 E-commerce Shopify Amazon eBay Overview Get ready to earn the skills needed to boost your bank books on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 Get ready to earn the skills needed to boost your bank book on up with QuickBooks Online 2023 The problem with that from our easy method is that we're usually using a cash based method to make it easy Meaning I would like to record the inventory as an expense when I purchase it so that when it goes out of my bank account I can just record it as an expense The fact that I need to put it on the books as an asset or that's what we should be doing generally Makes it more difficult because now it's harder to get that triggering factor to decrease the inventory and record the expense We also have a tracking problem because the same unit or kind of inventory could have changed in cost over time Which leads to these flow assumptions like a first in first out and a weighted average or common types of flow assumptions So there's more or less sophisticated ways that we can deal with that problem that we'll get into in a whole another kind of series or sections of the course So therefore simply using bank feeds will not be enough to track inventory properly So I mean we could try to do that right we could try to say I'm just going to write off as I pay for the inventory into cost of goods sold But we're going to have to have some method to account for inventory and cost of goods sold at least if we're trying to report our taxes properly Because usually you're going to have to have a cost of goods sold calculation even if you're sold proprietorship to file the proper taxes So however we can apply many different methods from less sophisticated to very sophisticated to deal with inventory tracking So you can imagine different methods you might use for inventory tracking and you can imagine trying to track inventory within QuickBooks Online But that gets a little bit messy because QuickBooks Online is not really built to track inventory in an e-commerce kind of situation You might have some integrations that can do it but it might not be the best way to go and it could if you sell a lot of inventory Way down the transactions that you're pulling into QuickBooks Online So then we could do other we can have other types of methods to track inventory possibly using third party software Possibly using Excel sheets possibly we can try to expense basically inventory when we purchase it and then try to account for the ending inventory periodically Do adjustments for ending inventory so we'll talk about those types of methods So from a logistic standpoint we need to make sure we have sufficient quantity to meet orders Now obviously when you're thinking about inventory there's two main things that are going in people's heads Mainly the people that are that are that built the Shopify store their mind is on revenue generation obviously And they're thinking I want to track inventory and make sure I have inventory in my store so that when people order stuff I can fulfill the order logistically so that's where clearly someone's head's going to be when they're trying to make money with an e-commerce store From our standpoint on the accounting side of things we want to we want to be able to track inventory properly on the financial statements At least for tax preparation and also so that so that when we're deciding what inventory to purchase What should be the price of the inventory and how much should we charge for the inventory those decisions can be made better So again usually someone that's using making an e-commerce store is quite good at picking inventory that might be a sellable item for example And making a beautiful advertising sales funnel possibly and then and then a nice web page and that kind of stuff may not be quite as good at Measuring exactly what the sales price of the inventory should be to maximize both the quantity of sales and and their profit margins And that's difficult to do if you don't have if you don't have accurate financial statements that can kind of help you with that side of things Otherwise you're kind of flying blind from an accounting standpoint we will need to report inventory and cost of goods sold for taxes at the very least So even if you're a small business at the very least and we could try to do you could try to do a simple kind of method you're going to You're going to at least need to report ending inventory and cost of goods sold on a yearly basis for tax preparation Okay, so what are going to be some of the issues here so usually we're talking about the store is where the point of sale happens And you might use a Shopify and Amazon and eBay or something like that obviously if you're using like a Shopify for example The that app helps you to have an online presence helps you to facilitate the sale and then some of the tracking of like the inventory and whatnot Is going to be in Shopify but it's usually going to be by quantity not by not tracking like cost on the first in first out or last in that kind of thing Because the goal is to facilitate the order making sure you have what is needed to fulfill the logistical needs of meeting the orders and making the sales Now then you might have an intermediary like a payment processing like a PayPal or a stripe and then you've got the QuickBooks software Or you could just like a zero or something similar kind of system Now the issue again is going to be well how can I get this information into the accounting software because if it was an online If it was an on-ground store I would enter the data as I make the purchases and make the sales into QuickBooks software But now the sales are being facilitated on the Shopify or Amazon side of things they're the ones that have all the sales records And I don't want to recreate invoices all the invoices and whatnot in account in the accounting software I want to pull that information in how could I do that Well you could you could try to just connect your accounting software to your bank again and just wait till it comes through the bank But you're losing a lot of detail to do that because you're going to be missing the fees and all that kind of stuff that's going to be associated with the store You could try to try to connect the accounting software to the Shopify, Amazon or eBay using either third-party applications or possibly QuickBooks online Which is which which some have very good integrations, but you got to be careful on which software you're going to use However, even then you could run into issues if you're using a payment processor like a PayPal or stripe In other words if you connect directly to say like a Shopify store for example you might be using the Shopify pay in order to help facilitate your payment when people buy stuff And in that case everything's happening through Shopify so when you pull in that data into your accounting software then any charge backs and all that kind of stuff Should be coming directly from the website you're making the sale on into the accounting software however if you have this intermediary platform like a PayPal or stripe that's helping to facilitate the sale You might have some charge backs or some fees that are happening on this payment level and if you're so you're going to be missing those if you're just looking at the store connection into QuickBooks So that's where the added level of complexity can come into play on that middle tier and then also again the inventory is typically going to be tracked at Shopify, Amazon or eBay At least the quantity of inventory you're going to try to populate the quantity of inventory in order to make sure you can logistically fulfill the inventory needs However when you pull that information into the accounting software we need to convert it to dollar amounts and usually use some kind of flow assumption to do that such as a first and first out or weighted average kind of assumption So those are going to be some of the issues we'll talk about and in future presentations what we will do is think about the normal inventory flow as if you're not doing a Shopify store but rather on ground store and then as we think about that flow we're going to think about the variants the things that are different in an e-commerce store and then how we can basically fulfill the needs of the e-commerce store which are going to be a little bit different once we've identified what those issues are