Automate your Shopify accounting with Seller Ledger

The Seller Ledger team is pleased to announce that we now connect directly with your Shopify Store to help automate much of your eCommerce business accounting. As with eBay, Amazon and Etsy, you can link your Shopify store(s) to Seller Ledger and we’ll regularly import your sales and expenses and automatically categorize them for you. Just log into your dashboard and click the “Add Account” button to link your Shopify store.

The flow is a bit different for Shopify than it is for connected marketplaces. After clicking on the button to “Connect to Shopify”, you will be taken to Seller Ledger’s listing on the Shopify App Store. Click the button to “Install” our app, and you will redirected back to Seller Ledger once the connection and proper permissions have been established.

Also, like with eBay, Amazon and Etsy, you can always change how you’d like to see your Shopify information categorized by customizing your settings.

What if I already sync eBay and Amazon with Shopify?

We do know that some users have chosen to sync their eBay and Amazon sales and product information with their Shopify store. But fear not, we only import Shopify store-specific sales from Shopify and ignore any other information from other platforms. To get data from multiple channels, you will need to connect to each channel directly. We do this to maximize the granularity and accuracy of the underlying data, as well as to avoid duplicate entries.

Thanks go out to the current Seller Ledger customers who helped us beta-test the integration with Shopify. If you are a Shopify customer and like the continued automation we’re providing, please consider helping us out with a review on the listing page. It’s a terrific way to help get the word out.

Understand your eCommerce Gross Margin with Seller Ledger

Seller Ledger is very pleased to announce the release of new functionality to help you track the gross margin in your eCommerce business.

What is Gross Margin and why is it important?

Gross margin, to put it simply, is how much profit you make on top the cost to create or acquire your products. This is before deducting other expenses needed to run your business. And it’s defined as a percentage of your overall revenue.

To use a super simple example:

  • It costs you $6 to make or buy something you intend to sell
  • You are able to sell that item for $10.

Your gross profit on that order would be $4, which would equate to a gross margin of 40%.

As for why gross margin is an important number to watch, let’s just say that it’s the starting point for any successful eCommerce business. If you aren’t making enough profit on each and every item you sell, you won’t be able to cover the additional expenses to run your business.

We will follow up with a more in-depth explanation, and some benchmarks on what a “good” gross margin looks like, so check back soon.

How do I find my gross margin?

Seller Ledger’s gross margin functionality only works for customers who are tracking costs on a per-item basis. You don’t need to track every single item cost, but the more you do, the more accurate your gross margin calculation will be.

If you click into the Inventory -> Sold view, you will now see a summary at the top of the screen that shows you the gross margin value and the percentage of transactions on which it’s based. To increase that percentage, you can enter more cost information for more orders.

In addition, there is a new dashboard tile that shows your gross margin for the current month. We have replaced the old “Cost of Goods” tile for inventory trackers, as this new information contains more detail – not only how much cost information you’ve entered, but also how much profit you’re generating.

Stay tuned for more updates in this direction, as we continue to look for ways to provide more insight into your business.

Record inventory purchase after item has sold

Do you ever sell an item before you’ve acquired the inventory? How do you account for that? Seller Ledger has a new setting to allow that.

By default, when Seller Ledger attempts to match inventory cost information with a sale, we assume that the sold item was purchased before the date of sale. However, based on feedback from a few customers, we have heard of the need to be able to support purchases that are made after an item has already sold.

To do that, we have added a new option under the Settings -> Business view:

Click the edit (pencil) icon under “Orders to Purchase Date Matching” and you’ll be presented with this dialog box:

Choose the second option to also allow matching to “future” purchases and voila – Seller Ledger will now let you match to purchases made after the sale.

A few small enhancements for tax season

In an effort to make it even easier to prepare for 2023 taxes, Seller Ledger has rolled out a few small enhancements.

View sales that have no cost information

For those of you tracking inventory at the item level, we’ve made it a bit easier to identify any remaining sales for which you haven’t yet entered cost information. In the Inventory -> Sold view, there is a new filter to allow you to select sales where cost information is missing:

View “in-stock” inventory totals

At the top of the Inventory -> In Stock view, we now show you the total count and cost of all of your unsold inventory:

Mileage totals

At the top of the Expenses -> Mileage view, you can now see both the total number of miles driven, and the total mileage expenses to deduct. In addition, we’ve added date range selectors so you can choose different periods to review:

While these aren’t the largest changes, they do reflect customer feedback about small ways to make the product a bit easier to use, which in turn, makes accounting and taxes less of a pain. Please keep sending us feedback at [email protected].

Better insights from eCommerce data with improved filtering.

The Seller Ledger team has released a number of enhancements to help you get more insights from your eCommerce financial data.

View Profit or Loss by Sales Channel

Are you a multi-channel seller? Have you wanted to view the sales and expenses specifically for one of those channels? Well, now you can. We have added a new “filter” under the Profit and Loss report:

You may also notice in that screenshot above, a new report for “Expenses by Vendor.” If you missed our previous blog post announcing that, you can learn more about it here.

Select a date range in Account views

While we have had this available in the Income and Expense tabs for a little while, we also recently rolled out the ability to select a custom date range when you click into any account view from your Dashboard:

More forgiving date selector

We have heard from a number of users that the date selector can be finicky, especially when trying to type in dates (the final value, year, often reacted too quickly.) This has now been improved. If you try typing in the start or end date rather than selecting from clicking the calendar icon, you should see a significant improvement.

See more of the important information on your screen

We’ve made several changes over the past few weeks to make it easier to see the most important information on your Seller Ledger screen.

Account balance details

When clicking into an account view from your Dashboard, we had previously shown the balance details at the top (including totals funds, available funds, etc.) by default. However, because customers tend not to rely on these details every time they click into the account, we have moved them under a new “Balance” button:

Click to expand

Click the green “Balance” button to see the balance detail information:

Click on the same button to hide these details. This reduces valuable vertical screen real estate and fits more transactions on the screen.

Rapidly categorizing transactions

Again, in an effort to make better use of vertical screen real estate, we’ve also changed the interaction for bulk editing of uncategorized transactions, pleasing everything on the same row:

Changing category of individual transactions

In an effort to make each transaction row more readable, and to save space, we have combined the visual cue for changing a transaction category with the category name, especially for uncategorized transactions:

Please let us know what you think of these changes by contacting us at [email protected]

View expenses by vendor

As we all work our way through the 2023 tax season, the team at Seller Ledger has begun working on improvements to help give you better insight into your business.

Expenses by vendor

You will notice a new report under the “Reports” tab – one called “Expenses by Vendor”:

This report is made possible because of some important functionality we’ve added to transaction tracking. As you can see from the following example, there is now a new “contact” field in Seller Ledger account views, labeled as “Transacted with”:

This field allows Seller Ledger to group spending amounts by the name of each “contact”.

Now, you may notice that the information coming in from banks and credit cards is hard to group unless the names here make sense. This can be due to a variety of reasons:

  • Paper checks – In those cases where you must write a paper check to a vendor, most banks simply provide a description about the check itself, not the name of the vendor.
  • Very long, hard to decipher descriptions – Sometimes we just can’t tell who the vendor or customer is. In those cases, we default to “Unassigned.”
  • Similar, but not quite identical names – This varies by bank, but sometimes they use very small variations in vendor names that can make it hard to group transactions together

Fortunately, Seller Ledger has implemented a number of features to help you quickly edit these contact names.

Editing Contacts

Next to each “Transacted with” name, you’ll now see an edit icon. Click that to either choose a “contact” that’s already in the system, or add a new one:

Now, editing each transaction one at a time might make sense for paper checks, but for most imported transactions, you’re going to want to edit them in bulk. And for that, we’ve added each of the following capabilities:

  1. Multiple select: choose multiple transactions and edit them in one step.
  2. Filter by “unassigned”: to see all of your transaction where we are unable to guess at a contact name, choose “unassigned” from the list of filter options.
  3. Sort by “Transacted with” and by “Description” fields: for those pesky, small variations of the same name, it sometimes helps to sort so that similar names are grouped together.

Hopefully, this helps provide a bit more insight into how your business is doing. Stay tuned for more updates along these lines, as we have big pans for 2024.

Upload inventory into Seller Ledger

For eCommerce merchants who want to track their inventory stock levels and per-item gross profit, we’ve now made it easier for higher volume sellers to load their inventory information into Seller Ledger.

If you make large purchases from certain vendors, and don’t want to type all of those items into Seller Ledger, there’s now an easy way to upload your items (and cost information) via a CSV file. Simply generate a comma-separated file that contains columns with headings of “sku“, “product name“, “quantity” and “total cost” and upload it inside of any of your inventory purchase transactions.

Not only can this help you save time when entering purchase information, but it comes in particularly handy if you want to start the year off fresh, or import inventory from another platform.

Read more about how it all works in our knowledge base article.

Better match 1099-K amounts with US time zone support

To help eCommerce sellers better match the 1099-Ks that get filed by online payment providers, Seller Ledger today announced support for local US based time zones.

Why is this important?

When Seller Ledger imports your transaction history from different online sales channels and banks, we receive them with timestamps (which, if you’re curious, might look something like “Tue, 26 Dec 2023 15:14:01.753000000 UTC +00:00”) You may notice the “UTC” in there – that stands for Universal Time Coordinated (it used to be called Greenwich Mean Time) and it’s 5 hours ahead of EST (or 4 hours ahead during daylight savings.)

However, online marketplaces, when providing transaction totals and reports, tend to use the customer’s local time zone to calculate those totals. So, to help make sure you can match the numbers that online marketplaces are reporting (and be consistent with the IRS from year to year,) we have now added the same time zone support.

How do I change my time zone?

To change your time zone, simply go to Settings -> Business and change the time zone like you see below:

That’s it. From now on, Seller Ledger will use your local time zone when reporting transactions.

Search transactions

Seller Ledger now allows you to search among your income and expense transactions. In addition to filtering transactions by date range or category, you can also now search using specific words that show up in your transaction descriptions.

For example, let’s take a look at a full list of “Income” transactions below:

Now let’s say I wanted to see just the sales of Hess Trucks with the “Dragster” included. Simply type “Dragster” into the “Search” box, hit return and voila:

We know folks have also requested similar search capability within Inventory, and that is on the list. In the meantime, please let us know what you think of this functionality, especially any ways that we can make it better by emailing us at [email protected].