With platforms like WooCommerce hosting, it has become seamless for everyone to run an e-commerce store and earn a good amount of profit. However, while you can efficiently and effectively manage your products and other important things in your WooCommerce store, it is imperative to have accurate facts and figures about your business handy with the help of a proper accounting system in place. It might seem to be a daunting and tedious task initially; however, you can do it effortlessly with simple and easy-to-use tools and WooCommerce plugins. Additionally, proper bookkeeping would prevent you from future legal complications.
If you are running an e-commerce store, you must be knowing how frequently people order things, cancel their orders, or request a refund, right? Is it practically possible to manage everything manually with just a spreadsheet or pen and paper? It’s not, even if you think you can pull it off, there are high chances that you might commit errors. This makes it inevitable to automate your accounting process and track all the transactions while keeping up with the taxation and other legal requirements. You just need to follow a simple process to get going with the proper accounting system for your business. Continue reading to know how you can link WooCommerce to an accounting platform and different types of accounting platforms that are widely preferred.
Link WooCommerce to an Accounting Platform
High-performing accounting platforms are feature-rich and ensure that each and every transaction performed through your WooCommerce store is saved and ready for future reports.
Though you can find WooCommerce plugins for streamlining the accounting process and handling taxes, you won’t be able to replace a complete bookkeeping software with just a plugin. Therefore, to configure a proper accounting workflow for your WooCommerce store, it is important to find an accounting platform that is agile and trustworthy.
A few reputable accounting platforms generally have a WordPress plugin for syncing the profits and expenses of your WooCommerce store. Your goal is to find an accounting software with a viable syncing process and WooCommerce integration plugin.
A few robust and widely preferred accounting platforms are:
- WooCommerce Sync – QuickBooks Online
This plugin brings your WooCommerce hosting together with one of the widely known accounting tools for large as well as small businesses. It offers real-time syncing for inventory, products, and sales numbers. Once you link your bank account for tracking expenses, you can utilize QuickBooks currency and tax support for saving and calculating all transactions and taxes from across the world.
- Xero WooCommerce Sync
Xero WooCommerce Sync is another accounting software available with a WooCommerce syncing extension. It does everything from payroll tracking, checking on inventory and reconciling your bank account’s transactions. All the tax, product and shipping data are sent directly to Xero from WooCommerce. Bluehost offers Xero with WooCommerce hosting.
- WooCommerce Zapier
Zapier serves as an integrator. It links your WooCommerce hosting to any bookkeeping software which does not have a WooCommerce extension officially. It can be integrated by people who already have an accounting platform in place apart from QuickBooks or Xero.
Configuring WooCommerce Tax Rates and Rules
Paying taxes on time is essential for keeping up with the laws and running your business smoothly. Therefore, in order to pay taxes on time without any fail, it is essential to configure automated taxes in WooCommerce hosting for ensuring accurate tax calculations and improving reporting in the software. These payments are categorized and set aside as taxes so that you can pay your taxes well in advance.
It is preferable to research or get in touch with an accountant to understand the taxation rules of your geographical location in accordance with your products to set aside nothing more or less than the amount you would require. Once you are clear about the nitty-gritty of taxation rules, visit your WordPress dashboard and begin with setting up the tax rules.
You should remember one thing here; you need to enable tax rates and calculations as the tax tab won’t appear on your dashboard by default. Therefore, you need to activate the functionality in the first place. However, how to do it?
- On your WordPress dashboard, click on WooCommerce > Settings
- You will see ‘General Options’ displayed on your screen. Scroll down to find the ‘Enable tax rates and Calculations’ option against the ‘Enable Taxes’ field and tick the checkbox.
- Once you are done with this, scroll down and click on ‘Save Settings’ and see your changes reflect.
- Now, you’d see a new ‘tax’ tab in your WooCommerce settings. You need to click on that
- Depending on the tax rates of your country and other distinct specifications of your business, you can begin filling in the details, tax rates, and others.
Advice Corner: – Instead of filling in the tax rates manually, get in touch with your accountant and either develop or ask for tax rate CSV and upload that on your WooCommerce store. This would expedite the process and minimize the chances of errors.
Be Calculative and Organized with Ecommerce Accounting System for Your Online Store
While you may be making a good profit out of your e-commerce business, improper bookkeeping can push you into serious legal trouble. This is not it, even you may not be able to calculate your exact earnings and expenses, and continue running your business without knowing the exact profit your business is making, which is not a healthy practice as it can drag your high-profit business to a loss-making one in just a couple of days. Therefore, it is important to stay on top of facts and figures about your e-commerce business with the help of plugins and software. Bluehost offers some of the best plugins for e-commerce hosting such as RazorPay, Stripe, Xero, Software Add-on and many more.
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