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Shopify and Xero

Why Xero and Shopify

We've been using Xero for our business and those of our clients for 10 years soon and throughout this time their innovation to make business 'beautiful' along with the app ecosystem around it has made it the bedrock of modern business in the UK.

Earlier this year soon after lockdown hit the UK and we locked up our bricks and mortar stationery shop and office for the last time - I came across the Shopify Reunite event.

Now, of course, we've known of Shopify and have 'used' it via our clients for a number of years now and whilst I was aware of the App Store and its ongoing development it wasn't until this event that I got the same excitement like from that of Xero events over the past few years where certain launches just blow you away with the little but seismic changes a bit of 'tech' can make to a businesses efficiency and its owners understanding of its performance.

In a nutshell I'd found our answer to 'Xero for Online Retail' - Thanks Shopify! 


Why not the Xero App in Shopify App Store

This app from Bold is not a bad start and better than a purely manual process but not much(!) - it works for Paypal payments in Xero as these need to be reconciled one by one - But if using Shopify Pay or other payment providers which send daily totals to your bank (which most do) this makes reconciling more of a puzzle than it needs to be - also can cause problems in terms of transactional performance in Xero (I'll post about that a different time!)


The next level: A2X Shopify vs. Xero Bridge

That's where A2X Shopify and Xero Bridge come into play - both work with grouping transactions by payment type. A2X Shopify is also able to post the corresponding COGS (Cost of Goods Sold) posting meaning that your inventory and profitability is a lot more up to date in Xero.