Shopify Accounting: Shop Cash adjustments in your Shopify payouts

Here we discuss the complexity of Shop Cash buried in the Shopify Payouts

Bookkeep provides assistance for posting Shopify payouts through the Payments Deposit journal entry. This daily journal entry records any new deposits made to your bank account that are associated with transactions from Shopify. Additionally, you may come across adjustments in this journal entry record which can be many things such as sales tax withheld or Shop Cash fees, payouts, and marketing expense. We discussed these Shop Cash items below and how Bookkeep helps keep track of each. See below for an example payout mapping:

We have recently added support to track Shop Cash payments within these payouts which are normally just shown as "adjustments." Bookkeep can identify these adjustments and confirm that they represent payouts for orders paid with Shop Cash. To learn more about Shop Cash, click here. These adjustments are relabeled by Bookkeep as Shop Cash credits, typically indicating a payout linked to an order paid using Shop Cash. As a result, your Shop Cash balance increases when an order is paid and decreases when the funds are transferred to your bank account. See below for an example:

Additionally, Bookkeep is equipped to identify and record any processing fees associated with Shop Cash payments. These fees will be displayed under the fees reduction line as a subcategory in the Payments Deposit journal entry. This allows you to track and account for any fees deducted from your payouts, providing a comprehensive overview of your financial transactions related to Shop Cash payments. See below for an example:

Furthermore, Shop Cash debits, which are often associated with Shop Cash campaigns, usually represent marketing expenses as outlined by Shopify. By detecting and accurately recording these debits within the Payments Deposit journal entry, Bookkeep ensures that your financial records provide a clear and detailed overview of all expenses related to Shop Cash campaigns. This feature enables you to monitor and track the effectiveness of your marketing efforts and better understand the impact of Shop Cash promotions on your business's financial performance. See below for an example:

Bookkeep has the capability to decipher the different adjustments within your Shopify payout, including Shop Cash payouts (Shop Cash credits), Shop Cash processing fees, and marketing campaign expenses related to Shop Cash (Shop Cash debits).

Bookkeep is also able to detect sales tax withheld being removed from your payouts to help ensure you do not overpay your sales tax collected as discussed here.

If you have any questions, please contact support@bookkeep.com.