Your Shopify data is pulled through secure integrations we have with your Shopify store. These numbers are updated automatically in real-time and validated through a series of data accuracy tests.
The Shopify data is mapped to the right accounts in your financial reports by our accounting and tax experts to give you the most accurate breakdown of your store’s performance.
The numbers you see in your books may be a bit different than what you see in Shopify. Here’s why:
We show your data from your Shopify store. This will include your sales processed through all payment gateways connected to Shopify (Shopify Payments, PayPal, Amazon Pay, etc.)
We take sales data sourced from Shopify.
However, to avoid double counting your income, we might exclude certain "Shopify sales channels", and you won't see them in your Finaloop P&L. One example of excluded channels is external apps that are integrated to Shopify but Shopify is not the source of income. For example, if you integrated Etsy to Shopify, we'll exclude these numbers from your Shopify sales. Instead, we sync this data directly from Etsy and you will see it as Etsy sales instead. Another example is apps that you connected to Shopify and create fictional orders or transactions. We exclude these orders and transactions to ensure your financials are 100% accurate and reflect the financial reality.
We pull all numbers based on UTC time zone while Shopify reports are based on the time zone you selected. This could result in slight timing differences.
If your selected accounting method is cash, and not accrual (ask our team if you are not sure), your sales numbers may appear slightly inflated due to gift card sales. From a cash accounting perspective, your gift card sales are included as sales income when the cash is received (while in Shopify, gift cards are not included as sales until they are used).
All numbers are matched to the amounts you see on Shopify (with the exception of the excluded sales channels and gift cards, as mentioned above). We break down your Shopify data according to our chart of accounts which is based on best practices for e-commerce businesses. So, when comparing the numbers, take into account the following mapping:
Finaloop account name
Sales - Shopify
Discounts & promotions - Shopify
Shipping income - Shopify
Refunds & returns - Shopify
Returns + Shipping*
Sales tax liability (not a P&L account)
* We handle returns a bit differently (due to technical constraints from Shopify’s API). Whenever a shipping income is refunded, Finaloop records it as a return, while on Shopify’s Admin it's deducted from Shipping. Accordingly, the sum of these 2 items in Finaloop is equal to the one in Shopify.
Important note if you receive cash payments for Shopify orders:
If you have Shopify orders that customers pay by cash, ACH, or check, and not through a payment processor, here's what we'll need from you to make sure these are accurately matched to the Shopify orders:
Head over to the bank feed and categorize these payments/deposits as "Cash deposit for Shopify order". Don't worry, this won't impact your Shopify sales numbers - it will just reduce your receivables on your balance sheet.
At the end of the year, we'll reconcile these deposits/payments with your Shopify orders. (you'll need this to get everything ready for tax purposes).