You can set up the account and tax mapping to your accounting software so imports will arrive already coded and ready to reconcile. This saves you a lot of time on the process of recording your Shopify transactions.
The Accounts and Taxes feature allows you to map your Shopify transactions to your accounting. It does this by accessing your Chart of Accounts or by creating accounts specific to Shopify transactions directly from A2X in your accounting system.
Where to go?
You can set the accounts that the typical Shopify transactions will be coded to in the Accounts & Taxes tab at the top.
How to let A2X create accounts:
Assisted Setup
When you visit the Accounts and Tax Mapping page, you'll see an onboarding questionnaire that asks you a series of questions. Once questions are answered, A2X will then automatically suggest the required Chart of Accounts and apply the tax rate to all of your transaction lines.
With just a few clicks, you can now automate the whole accounts and tax mapping process.
How to choose from your Chart of Accounts?
In some regions or configurations, the assisted setup option may not be available. In this case, or if you prefer to set up the accounts and taxes manually,
You can create accounts in your accounting software right from A2X as suggested by A2X:
The below accounts will be set against the appropriate transaction types, all you need to do is select your tax rates and then select save mappings.
Shopify Fees
Shopify Pending Balances
Shopify Promotions
Shopify Refunds
Shopify Sales
Shopify Shipping
Shopify Sales Tax Collected
It is important to note, that by default your transactions will be grouped by the high-level transaction type, i.e. all Sales with No Tax will be grouped in one line. If you would like your transactions broken down in more granular detail (i.e. by SKU or Product Type) please click here to find out about our different sales grouping options. These settings need to be set up prior to completing your mappings and you will need to refresh your settlements to apply these new settings.
Custom/Manual Mapping
Instead of our generic default accounts, you can select your own account for any transaction type. Just click on the dropdown arrow to open the dropdown list, and then scroll to find and select the account from your Chart of Accounts list. If you had originally created default accounts you can change any of these using the same method.
Save your mappings!
Finally, always remember to click the Save Mapping button at the bottom of the page.
Your account mapping will now apply to your settlements consistently.
Note: If you create accounts in your accounting software with A2X open, refresh your Cache in Settings > Connections.
Tips and Tricks
Learn the ins and outs of the mapping page and other features available for advanced mapping, tips, and tricks HERE.
Set your tax rates
The second part of the mapping section is selecting a tax rate. All transaction lines need to be filled in, either with a tax rate or by selecting 'no tax'. You'll choose a tax rate if you want your accounting software to calculate tax on that transaction.
Applying a tax rate is more common when using Xero or a system that will calculate your tax return. For tips on mapping in A2X to include or exclude transactions from your tax module, click HERE.
Rather than applying tax rates to individual lines, you can apply the same tax rate to multiple lines, with bulk actions.
Step 1: Enable Bulk Actions
Step 2: Choose tax Exempt or No Tax.
(For UK, EU, AU, NZ, or SG sellers follow the instructions HERE for VAT and GST mapping)
Due to the complexity of Sales Tax around the world, we recommend our customers seek professional advice on the correct approach to sales tax for your marketplaces.
Please click HERE to find an expert
Do you need help with your A2X set up?
Are you struggling with setting up your Accounts and Taxes page and you would like some help from an accountant or bookkeeper? We have a directory full of expert accounting/bookkeeping partners around the world who are ready to assist with your e-commerce accounting and A2X.
Please click HERE to find an expert
Next Article: Step 5 - Send your first Invoice to your accounting system.
Useful links
What about payment gateways / Payment processors?
Do you need help with your A2X set up?
Are you struggling with setting up your Accounts and Taxes page and you would like some help from an accountant or bookkeeper? We have a directory full of expert accounting/bookkeeping partners around the world who are ready to assist with your e-commerce accounting and A2X.
Please click HERE to find an expert
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