While a few are enthusiastic about it, for the vast majority of traders it is a major but necessary evil: we are talking about bookkeeping. The principle of proper accounting dictates that all business transactions must be documented in a timely and chronological manner. To comply with this, you should automate your Shopify accounting. How to create a Shopify invoice and bring it together with your accounting software is explained in this blog post.
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Shopify invoices must be recorded for accounting purposes
The principle of proper accounting according to the German Commercial Code (HGB) also applies to companies in e-commerce. This essentially says nothing other than that all income and expenses must be recorded and documented. On the revenue side, this means that all outgoing Shopify invoices must be recorded for accounting purposes. The same applies to the documentation of costs, be it for personnel, purchases of goods, storage facilities, office rent, etc.
In addition, for most businesses, sales tax liability applies. If this is the case, in addition to revenues and expenses (net), the sales tax collected as well as the input tax already paid to the tax office in advance are also recorded. The input tax can be paid either monthly or quarterly.
These requirements give rise to an expense for retailers that should not be underestimated. If errors occur in accounting, there is also the threat of serious consequences from the tax office. To prevent this, many companies use DATEV accounting software to automate their bookkeeping. There are various Shopify accounting apps that, depending on their features, create an invoice online, can be used to view Shopify invoices, post incoming and outgoing payment flows (e.g. via Shopify Payments), and can transmit these directly to the relevant tax office in accordance with DATEV specifications. In the following, we would like to introduce you to some of these apps.
Reading tip: Want to simplify and automate your processes even more? We introduce you to Shopify Flow.
Create Shopify Invoice: This is what matters
When it comes to accounting, Shopify merchants usually focus on three aspects: Invoice creation, payment reconciliation, and DATEV-compliant data provision.
You can create invoices using one of the numerous apps from the Shopify App Store, such as Sufio. In addition, many merchants use their ERP system for invoice creation.
When providing DATEV-compliant data that accumulates in the store, such as transactions or returns, it is recorded in DATEV format. For this purpose, for example, the pathway app is suitable, with which you can also create your invoices.
During payment reconciliation, it is checked whether all payments are correct. You can download your data in the Shopify backend as a csv or Excel file and thus track transaction fees, for example. However, this is only possible with Shopify Payments, with payment providers like Paypal you have to download them separately.
Simple accounting vs. double-entry accounting: these are the differences
It is quite easy to distinguish between single-entry and double-entry accounting, as they have significant differences in key points. We have summarized these differences for you here:
|Simple accounting||Double entry accounting|
|Records income and expenses for the determination of profit as well as for an income statement (EÜR)||Business transactions are posted to two accounts - account and contra account|
|Applies to freelancers as well as companies that have generated less than €60,000 in sales or profits per year||Records revenues as well as expenses for a profit and loss statement (P&L) and for the balance sheet for the annual financial statements|
|Does not apply to merchants registered in the commercial register (e.K) and corporations||Applies to companies that have generated more than €60,000 in sales or profits, as well as all corporations and partnerships listed in the Commercial Register|
Shopify Accounting: Apps at a glance
Shopify offers many accounting apps in the Shopify App Store. Some of them have already been mentioned in the previous chapter. Below we'll go into more detail about some of the apps that you can use to easily create Shopify invoices.
In order to relieve the accounting department and to take care of tedious manual assignment of transaction data, pathway provides you with exports in DATEV format. All you need to do is install the Accounting Export Pro app. The solution was developed together with Shopify merchants and tax consultants. In just a few clicks, you can retrieve and export all relevant data.
DATEV-compliant exports incl. refunds, discounts & delivery fees for your tax advisor.
Multi-shop: Manage several of your stores with only one tariff
Sales can be separated by delivery country (OSS)
Reconciliation of all payment providers (e.g. Shopify Payments)
Monthly cancellation possible
Onboarding takes place together with your tax consultant
Pricing structure (net):
The lowest tariff "Starter" starts at 29€/month for up to 250 orders per month. For up to 7500 orders the "Professional" tariff starts at 49€ to 149€ per month. Everything above that is covered by the "Enterprise" tariff for 149€ per month. For every 1,000 additional orders, an additional 10€ is added to the monthly fee.
pathway accounting export is also used by our customer Live Fast Die Young.
With the accounting software WISO My Office, all relevant functions can be mapped, from invoice creation to annual financial statements. The integration takes place via the WISO App in the Shopify App Store.
Automatic reconciliation of payments and automatic dunning process.
Creation of invoices with all order data automatically transferred from Shopify
DATEV interface for tax consultants
WISO MeinBüro can be tested free of charge for 14 days. After that, the cheapest package costs €6.00 per month when taking out an annual subscription for the web version. In addition, there is also a desktop version starting at 9.90€ per month. Both versions are not compatible with each other.
The pathway invoice printer is a Shopify app for invoice creation. It creates a corresponding invoice for every order in the store. Access for the tax advisor can be granted via the provider's platform.
Send automatic and legally compliant customer invoices
Seamless and continuous invoice numbers and credit notes
Can be combined with Shopify POS
Designed for many orders, international delivery countries and tax rates
The smallest package, with up to 50 invoices per month, starts at $9.99 monthly. Starting at 2,500 invoices, it's $19.99 per month. For every additional 1,000 invoices, the price increases by $5.
Our customer ooia uses pathway invoice printer for their Shopify accounting.
Order Printer Pro
Automatic sending of a PDF invoice for each customer order.
Export of data as bulk export possible
Filtering and creation of invoices from Shopify backend and POS possible
Supports Shopify Markets (translations, multi-currency, taxes)
Up to 50 orders per month, the app is free. After that, there is a $10 monthly fee.
Reading tip: For more Shopify tools for a top-notch e-commerce business, check out our post on the 15 best Shopify apps.
Sufio is a Shopify app that can be used purely for invoice creation. Invoices can be downloaded here as PDFs and sent to the customer.
Automatic creation and sending of invoices, credit notes and reminders.
Legal in over 50 countries
Documents can be translated into 35 languages
Template customization: logo, colors and fonts can be applied
Print and download many invoices at once, simplifies sharing
B2B sales: check VAT in the EU, and classify exempt customers
Sufio can be tested free of charge for a period of 14 days. After that, you can choose between different plans:
Basic plan for $19/month including 50 invoices.
Standard plan for $49/month with unlimited invoices and additional features
Premium plan for $129/month with unlimited invoices and many more features, such as priority support and quotes and estimates
Enterprise plan for $499/month with unlimited number of invoices as well as all available features
Our client #You uses Sufio for their Brand Ava & May accounting.
Conclusion: This is why you should automate your Shopify accounting
Above a certain order volume, manual processes become your company's bottleneck, as they tie up a lot of resources and are enormously error-prone. Shopify accounting is no exception. Automatic invoice generation can take a lot of work off your and your team's hands in day-to-day business and help document your payment flows promptly and, depending on the app, in accordance with DATEV. This, in turn, helps authorities track your business transactions and prevents queries and associated inconveniences. In the article, we have introduced you to some of the most renowned Shopify accounting apps that will surely simplify your everyday business life.
We will be happy to support you with any concerns you may have about your accounting with Shopify or any other questions you may have about your project. Contact us.
Frequently asked questions about Shopify accounting?
What is accounting?
Accounting is an important part of financial management in companies and organizations. It refers to the systematic recording, organization, analysis and documentation of financial transactions and business operations.
Can Shopify create invoices?
Out of the box, Shopify does not let you create invoices. For this reason, the Canadian company provides all interested parties with a free invoice generator that can be used via the web browser. However, this is obviously not an adequate solution for companies with a certain volume of orders, which is why there are many Shopify apps that can automate invoice creation.
Which invoice program for Shopify?
There is a wide range of invoice programs for Shopify. Some of the most popular Shopify accounting apps are pathway, sevDesk, lexoffice, sufio and Order-Printer Pro. We will introduce each of these apps in our blog post.
Where can I find the Shopify invoices?
Shopify invoices can be viewed via the admin area in the "Invoices" menu. However, provided you use an app to manage your Shopify accounting, it may also have its own menu where invoices are listed.
What all must a Shopify invoice contain?
The same legal requirements apply to a Shopify invoice as any other invoice. Accordingly, your invoice must contain the following items:
Tax number or sales tax identification number
Invoice items (quantity and item description)
Date of delivery / performance
(Optional) Reason for possible tax exemption
Which accounting software with DATEV interface is recommended?
Shopify offers a few accounting apps with DATEV interface, such as Lexoffice or WISO MeinBüro. Which of the two apps suits you better depends on the requirements it has to fulfill.
How does simple accounting work?
In simple bookkeeping, income and expenses are recorded in order to determine the profit made and to be able to prepare an income statement (EÜR).
What is double entry accounting?
In double entry accounting, also known as Doppik, business transactions are posted to two accounts - the account and the contra account. Based on these postings, the balance sheet for the annual financial statements and the income statement are prepared.