A Shopify store creates more bookkeeping than its sales figure suggests. Orders, refunds, Shopify Payments fees, app subscriptions and payouts all move on different days, and the amount that lands in the bank is never the amount you sold. The way to keep it straight is a Shopify clearing account: sales go in, payouts and fees come out, and the balance is what Shopify still owes you.
Nexbal is launching in the UK, and the method below is how a Shopify store runs its books in it from day one. Join the Nexbal beta and set it up on your own store’s figures.
How the books work for a Shopify store
- Post the month’s sales from Shopify’s finance summary or sales report as one entry against the Shopify clearing account, with the report attached as the supporting document. The same report gives the VAT split by rate that your VAT records need.
- Upload your bank statement as PDF. Nexbal reads every line and suggests the posting, so each Shopify payout lands against the clearing account rather than as new income.
- Record Shopify’s fees as a cost. Forward Shopify’s billing invoices and app subscription invoices to your company’s document reception address, and Nexbal prefills each entry for you to review.
- Check the clearing account at month end: its balance should equal sales Shopify has not yet paid out.
The full method, with a worked journal, is in reconciling Shopify payouts and VAT. Stores that also sell on marketplaces should read multi-channel e-commerce accounting.
Why the clearing account matters
| Without a clearing account | With a clearing account |
|---|---|
| Payouts posted as sales, so fees and refunds disappear | gross sales, refunds and fees each visible |
| Sales income depends on payout timing | sales sit in the month they were made |
| Missing payouts go unnoticed | a balance that does not fall shows a payout is missing |
Common questions
Do I post every Shopify order? No. One monthly entry from Shopify’s reports is enough for most stores, as long as the report is kept with the posting.
Can I invoice wholesale customers from Nexbal? Yes. Invoices, credit notes and reminders go out as PDF by email, in sterling or in a foreign currency at the daily ECB rate.
Where do refunds go? Refunds reduce the sales in the month they are made and come out of the clearing account in the next payout.
Get your Shopify bookkeeping in order with the clearing-account method. Join the beta.