How Bookkeep posts financial data to Xero
Bookkeep is about saving you time and avoiding manual data entry. Through various integrations, Bookkeep retrieves financial data and posts this data as either a Manual Journal for some journal entries or as a Receive Money Transaction (in the case of bank deposits) within Xero.
To better understand this, let's look at the common journal entry types we post to Xero. Depending on the specific integration e.g. Shopify, Stripe, Square, we offer various journal entries that we can post if you map them and set them to on.
The most common journal entries we post are described below as well as whether it is posted as a Manual Journal or a Receive Money Transaction in Xero:
- Sales Summary - for sales we post one Manual Journal in Xero that represents a day of sales. Instead of bringing in every single order as a unique journal entry, we post one summarized Manual Journal representing a day of sales. See below for an example journal entry in Xero:
- Cost of Goods Sold (COGS) - the COGS entry is posted as a Manual Journal which represents the cost of goods that were sold for an entire day which increases the cost of goods account and decreases inventory since these items were sold. Again, we do not post each order as a separate Manual Journal, but we post one summarized COGS Manual Journal for a particular day.
- Deposits or Payouts - when it comes to deposits to your bank account, Bookkeep does not combine these into summarized journal entries. Bookkeep posts each deposit as its own Receive Money Transaction to allow you to easily match the deposits to your bank statement or bank feed. See below for an example:
- Fees - Bookkeep posts fees as one summarized Manual Journal for a particular day. We do not post each fee transaction as a separate Manual Journal. Fee journal entries occur when you would like to book only fees related to most commonly payment processing. For example, if you have a Shopify store but Stripe processes these sales, you would have Shopify post the sales journal entries. However, Stripe would incur fees to you for processing those sales and that is what the fee Manual Journal accomplishes. See below for an example:
As always feel free to reach out if you have any questions!