Having practical accounting knowledge can protect your company from potential fraud and tax reporting issues. Solid accounting procedures and the ability to track cash flows accurately just makes good business sense. To avoid inaccurate financial records and to keep tabs on revenue and expenses in your WooCommerce store, you need an excellent WooCommerce accounting tool.
Now is the perfect time to start using the right accounting solution for your WooCommerce store if you haven’t done so already. It can help you spend less time performing bookkeeping tasks.
That time can be better spent helping your company continue to grow and thrive. Keeping and maintaining transaction records can seem somewhat intimidating at first. That’s why modern accounting resources were created to help companies of all sizes.
You can use some of these resources to connect with your WooCommerce website. Information can be imported and updated automatically. You don’t have to worry about entering items by hand anymore. There’s also no risk of human error in entering data or potentially missing key information.
WooCommerce Accounting Plugins And Tools
Fortunately, there are plenty of useful accounting tools that can be of great use for companies in any industry. However, there are only a small number of them that come highly recommended due to their simplicity and effectiveness.
We will have a look at some of these solutions and how you can use one of them in your WooCommerce store to save both time and money.
QuickBooks is probably what most people think of when the term “small business accounting software” is used. The product was launched by Intuit 20 years ago. It has grown to become one of the most popular and most used financial management platforms today. Xero is their only real close competition.
More than 80% of all small businesses currently use QuickBooks. It’s a highly sought resource for many small to medium-sized companies. QuickBooks can be used to accommodate accounting, reporting, and invoicing needs. It also offers various add-ons that can be used for credit card processing, inventory tracking, and payroll processing.
One important thing to know is that QuickBooks and WooCommerce don’t directly connect with each other. Third-party extensions are required to make the integration possible (check my post about WooCommerce QuickBooks integration).
Several resources can accomplish this task. Knowing the differences in how they transmit data between WooCommerce and QuickBooks is the first step in picking the right solution for your business.
MyWorks, Zapier, and other third-party plugins make the connection between WooCommerce and QuickBooks possible. Integration can be simple tasks such as sales information or more complicated such as updating your inventory in real-time as changes happen. The plugin or extension that you choose should be based on the needs of your business.
Before you can make any type of connection, you’ll need an active QuickBooks account that can be integrated with your WooCommerce store. QuickBooks Online is an ideal solution for many small companies.
It’s a cloud-based solution that can be used to keep track of your customers, expenses, income, and sales transactions. You can also use QuickBooks Online to control inventory, invoices, purchasing, and much more. It’s a very affordable resource, with prices starting at $20 per month.
QuickBooks and WooCommerce integrations connect and send information back and forth to each other in a couple of different ways:
- One-Way Transfer Integrations: These connections are rather simple. They transfer data for tasks like posting order in WooCommerce as a sales receipt in QuickBooks automatically. There’s a one-time low-cost fee associated with one-way transfer integrations. They’re an excellent way to handle basic tasks such as sending information about orders or customers in WooCommerce over to QuickBooks.
- Two-Way Sync Integrations: These integrations are usually more complicated. They’re multiple synchronizations of information between both systems that occur in real-time. Both WooCommerce and QuickBooks are updated when changes in customer data, inventory numbers, order and tax details, product descriptions, and other vital categories are made. These integrations are more expensive than simple one-way transfers.
Knowing what’s essential for your business will help you find the right QuickBooks solution. A sole proprietorship or small start-up company may only need a one-way plugin with a small one-time fee to have their WooCommerce orders post in QuickBooks automatically for them.
Larger organizations or companies with high order volumes may require a two-way integration to keep their information as updated as possible. This is a convenient feature, but it often comes at a higher price in terms of monthly fees for these services.
2. Xero Accounting Software
Xero is one of the simplest and most effective accounting programs on the market today. You can use it to help you with bank reconciliations, financial reporting, inventory reporting, payroll processing, and other essential WooCommerce accounting functions.
You can configure invoices to be created automatically for every order in your WooCommerce store. Once you’ve activated, installed, and set up the module, all WooCommerce orders will be transmitted to your Xero account so that your records are up to date.
Information is sent securely to safeguard any sensitive data. Your Xero account will receive tax, shipping, and discount/coupon details. Any payments made by your clients will be applied to the appropriate invoices. This function helps to keep everything in perfect balance.
Zapier or the WooThemes Xero extension can be used to provide the connection between your WooCommerce store and your Xero account (check WooCommerce Xero integration). Each option is intuitive and easy to use.
Xero is stylish and offers a vast array of impressive functions. It can be used for automatic invoice creation, bank reconciliations, financial reporting, tracking inventory, and many more administrative and financial tasks. It was created to support WooCommerce store operations. Xero has encrypted data transmission and is very simple to set up.
You can use your FreshBooks account to connect to your WooCommerce website automatically.
FreshBooks allows you to set up the following functions:
- Invoices are automatically generated in FreshBooks every time an order is placed in the WooCommerce site. A customer account will be created, and any corresponding payments will be recorded for that account.
- You can determine what accounts you want to link to FreshBooks according to order source, fulfillment status, or payment status. Advanced options give you more freedom over how you want your accounts to be integrated.
- Tax codes can also be automatically mapped to FreshBooks.
- Products in WooCommerce online orders automatically create new items in the FreshBooks account.
- You can either designate a specific clearing account for payments, or you can assign various payment methods currently accepted.
- Items can be created in FreshBooks account whenever products are updated or created in the WooCommerce store.
4. Akaunting for WooCommerce
Akaunting (there is a free version also) is a useful online accounting tool that eliminates the time and errors associated with having to enter and process bookkeeping and accounting information by hand.
This WordPress plugin is worth the investment if you want to manage your income and expenses accurately. Their experienced technical support team can help you overcome any challenges that you may face.
Accounting For WooCommerce Conclusion
Every company needs to have an excellent financial record-keeping system in place. Having a defined accounting structure makes decision making easier for company managers and owners. Updated information is essential for an organization’s success. This success can only continue by using the best available resources to develop good business practices.
Many business owners may not necessarily enjoy bookkeeping functions, but they understand their importance to the company. They all want to see how the business is performing. Getting those results usually requires a lot of data entry, crunching numbers, and updating inventory levels. Each of these tasks takes time, especially if you’re performing each function yourself. If you’re having someone else do your accounting, there’s also a monetary cost associated.
All companies need to have good accounting systems and accurate records, no matter how long they’ve been in business. You can’t accurately analyze trends, profitability, and performance without updated data. WooCommerce does provide some reporting tools. However, these resources don’t have invoice management, in-depth analysis, and performance forecast that companies rely on.
WooCommerce accounting solutions are more than just financial recording tools. They can help you control and automate particular purchasing pipeline duties. They allow you to concentrate on increasing revenue and ensuring profitability for as long as possible.
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