We know that for many WooCommerce store owners, accounting can be a struggle. You’ve opened your WooCommerce store, you’re selling your products, and you’re feeling good about it. But then you realize: you haven’t set up an accounting system. Oops! Luckily, WooCommerce integrates with some popular account software, like the WooCommerce Quickbooks plugin. If you haven’t found the right accounting solution for your WooCommerce site, we can help you determine the best option for you. We’ve made a list of the best accounting software for WooCommerce!
Why is WooCommerce Accounting Important?
Just like a brick-and-mortar business, your online business needs accounting. WooCommerce is a customizable, open-source eCommerce platform built on WordPress. WooCommerce is often compared with Shopify, but they are not the same. If you haven’t done so already, now is the time to choose the right accounting software for your WooCommerce site.
Some practical accounting software can help you avoid fraud and tax issues, as well as help you spend less time on bookkeeping! This is time that you can spend doing other things to help your business grow and succeed.
Tracking and Reporting in WooCommerce Software
In a perfect world, the accounting platform you choose would sync sales data and put it in the right column at just the click of your mouse. And luckily, some of the plugins on this list do have options for automating many accounting and tax-related tasks. But you can also use the software to track important numbers on your own in order to see the progression of your store over time, and to make it easier to build reports in the future.
The following are some important data you might want to consider tracking in your favorite WooCommerce accounting software:
- A full balance sheet
- Costs of goods sold
- Cash flow
These are just a few of the key metrics you might want to keep an eye on for your business, but there might be other metrics you’ll want to track. WooCommerce accounting software, like QuickBooks and Xero, make it pretty easy to see how your business is performing, even if you don’t have an accounting degree!
Best Accounting Software for WooCommerce
The first step for setting up an account flow on WooCommerce is choosing an accounting software that you trust and feel comfortable using. These are the best accounting plugins for WooCommerce:
Finpose offers a proficient financial tracking and account resource through your WordPress dashboard. You can use the Finpose dashboard to accomplish your basic accounting tasks and see how your company is doing financially by monitoring your acquisition spending, expenses, and costs. It will also give you an estimate of your store’s taxes. In our opinion, Finpose is perfect for small to medium-sized businesses, and is one of the best options for a WooCommerce accounting plugin.
WooCommerce QuickBooks Plugin
When most people think of accounting software for small businesses, they probably think of QuickBooks. After all, more than 29 million small businesses in the U.S. use QuickBooks!
The WooCommerce Sync Quickbooks plugin allows you to utilize one of the most popular accounting tools for your WooCommerce site. We like this plugin because it has a real-time syncing feature for products, inventory, and sales numbers. Plus, you can link your bank account to track expenses and use the global QuickBooks tax and currency support for logging your taxes and transitions from all over the globe.
Xero WooCommerce Sync
If you’re looking for one of the simplest and most effective accounting programs available, try Xero. You can use the Xero extension to help with financial reporting, inventory reporting, payroll reporting, bank reconciliations, and more.
Xero and WooCommerce sync together pretty flawlessly. For example, you can configure invoices to create automatically for each order in your store. All WooCommerce orders will be transmitted to your Xero account so that your records are up to date. But don’t worry: your information is sent securely to safeguard any sensitive data.
An alternative to Xero and QuickBooks is the WooCommerce Zapier plugin. Zapier is a universal integrator to link your WooCommerce infrastructure with any bookkeeping software that doesn’t have an official WooCommerce extension. There are also other ways you can use Zapier to help your WooCommerce store, which makes it a handy tool to choose to help with your WooCommerce accounting.
Freshbooks is great because you can use your account to connect automatically to your WooCommerce site. It also has a lot of other great functions, like automatically generating invoices in FreshBooks every time someone places an order. You can also choose which accounts you want to link to FreshBooks according to order status, fulfillment status, or payment status. Plus, FreshBooks can automatically map tax codes for you, too. (More on taxes in WooCommerce later!)
Akaunting for WooCommerce
Akaunting is a helpful online accounting tool that eliminates any errors that might occur when you have to keep your bookkeeping and accounting data by hand. There is both a free and a paid version of this software. We think the paid version is worth the money if your goal is to accurately track your income and expenses.
WooCommerce Tax Plugin
In addition to general accounting needs, you might want to consider a plugin for your WooCommerce site to help you come tax time. It’s important to keep up with your taxes so you don’t break the law or have to pay any fines.
If you want to choose a tax plugin for WooCommerce, one option to try is TaxJar. TaxJar is a free plugin that integrates seamlessly with WooCommerce, and pulls your real-time tax rates from your location. It also provides automated filing, advanced reporting, and real-time calculations.
While a WooCommerce tax plugin is never a bad idea, we also always recommend at least meeting with a tax professional or accountant to determine your obligations based on where you’re located and the types of products you’re selling.
Once you’ve done that, head to your WordPress dashboard to set up your tax rules. The tax tab won’t appear on WooCommerce until you tell it that you want to enable tax rates and calculations. So make sure to activate that functionality!
How to Turn on Tax Rates and Calculations in WooCommerce
- In WordPress, go to WooCommerce > Settings.
- Under General Options, go to Enable Taxes. Mark the checkbox that reads “Enable tax rates and calculations.”
- The change won’t save unless you save the settings, so make sure to scroll to the bottom and click “Save Changes.”
- Now, you should see a “Tax” tab in your WooCommerce settings.
WooCommerce and WordPress Accounting Services
Accounting and taxes aren’t the sexiest parts of having your own online store, but it can definitely help to choose the right accounting software and plugins to help you with these mundane tasks.
If you need help adding accounting software for WooCommerce or WordPress to your online store, SEO Design Chicago’s experts can help. We offer ecommerce website development services to assist you with whatever you need for your WooCommerce site, from search engine optimization, to adding plugins, and more.
- What is WooCommerce?
- Do I need accounting software for my WooCommerce website?
- Can I use QuickBooks with my WooCommerce site?
- How do I turn on tax rates and calculations in WooCommerce?
- Which figures should I track for my WooCommerce site?
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