A2X/QBO Setup & Consulting | How to Make Huge Changes in Your Business

So you see, with most businesses, most of their financial activity is going through their bank accounts. Deposits, payments from customers, inventory, business expenses, these kinds of things are going into and coming out of their bank accounts.

But with ecommerce, the main financial activity is not going through your bank accounts at all. It's going through your sales channels. So things like sales returns, refund fees, advertising, lending costs if it's through your sales channels, warehousing costs, shipping, sales tax, all these things are being taken out of that gross income that you get from the sales before it ever hits your bank account.

So the problem is, if you are not paying attention to all of this stuff that's going on inside of your sales channels, you are not getting an accurate picture of your business. You are missing vital information, and which means you cannot get an accurate picture of how profitable your business is. Now remember when we talked about businesses failing in their first five years? I would argue that it's because they do not know how to understand what's actually going on with their finances.

1:07 Why syncing everything into QuickBooks fails

Okay, so it would be really easy to say, okay fine, I need all this information from my sales channel, so I'm just gonna sync up my Amazon or my Shopify account directly into my QuickBooks Online, and then everything's gonna funnel into one place and I can deal with it there.

But remember, we're talking about things like gross sales and returns and refund amounts and shipping costs and warehousing and sales tax and all these things. This huge long list of things. The problem is, if you're trying to deal with it transaction by transaction, you're probably gonna make yourself crazy really fast.

Now, that might be fine if you have a hundred transactions a month, or you know, 200, okay, fine. But if you have thousands and thousands of transactions a month, or tens of thousands, you are going to rapidly make yourself crazy. And QuickBooks is not the place to put all that information.

You want your QuickBooks account to be a source of truth, and if you're having to sort through and spend hours and hours and hours and hours sorting through this information to get something that makes sense, you're probably not going to do it. If you do do it, you're gonna be taking valuable time away from other aspects of your business. Or maybe you're paying somebody to do it and they're still probably going to be getting it wrong.

2:43 How A2X summarizes the channel data

So let's talk about another way. The thing is, you still need this information. You just need it in a way that's easy to digest and make sense of. So enter A2X.

Now, we here at LedgerGurus, we love A2X because it makes ecommerce accounting so much simpler, because what it does is it takes that huge amount of information that's coming in from your sales channels and it summarizes it up. It's like it puts it into all the boxes. It looks at each one of these transactions, says, okay, this goes into the sales bucket, this goes into the shipping fees bucket, this goes into sales tax, this goes into warehouse costs, all these different things.

And then at the end of the month, it presents you with these buckets with it all nice and summarized. And so you're looking at one journal entry, and then you can go in and say, okay, that's where this goes, this goes, this goes, this goes. So it makes it so much easier to pull together that information.

3:30 Getting your chart of accounts right

Now you've got all these buckets, but now comes the part where you need to make sure that your accounting software, let's say QuickBooks Online, is set up properly. You need to have your chart of accounts set up so that it will evenly match up with this bucket and this bucket and this bucket and this bucket.

Because like I said, you want your accounting software to be a source of truth. You want to be able to look at that profit and loss statement or the balance sheet and say, oh, okay, I see exactly what's going on in my business. I can see everything that I've spent on this. These are all the fees that I've had. This is what needs to go out in sales tax. It makes it very, very simple to pull it all together.

4:05 The A2X and QBO setup service

But how do you get it set up so that you can be sure that it's absolutely right? So I wanna tell you about our A2X and QuickBooks Online setup and consulting service. This is gonna take all the guesswork out of it.

What we do is we go into your QuickBooks Online account and we make sure that your chart of accounts is set up properly. Then we go into your A2X account, make sure that it's syncing to your sales channels properly, that it's syncing to QuickBooks properly, and that everything is mapping properly.

And then we sit down with you for an hour and go over all of your questions. We show you how to use this software, because it's fantastic getting software, but if you don't know how to use it, it's useless. It's a waste of money. So we wanna make sure that you know how to use it.

But then here's the best part. That consultation is recorded. I don't know about you, but I know that if I am fire hosed with tons of information in a short period of time, the likelihood of me remembering it is like zilch. But if it's recorded and I can go back and watch it later and be like, oh, oh yes, I remember that. Oh yes, I remember that too. It makes such a difference. So these services are also recorded so that you can go back and be reminded of this at any time, and it's fantastic.

So if you're interested in our service and you would like us to do this for you, or you'd like to learn more about it, go to our website, ledgergurus.com. The link is gonna be in the description below and you can learn all of this, and you can do a call with us where we can figure out exactly what your needs are and what's going to be the best fit for your business. We are happy to do that with you.

If you like this video, make sure to subscribe and tell your ecommerce people about this. This is such a cool, important thing. And cuz it makes ecommerce accounting so much simpler, it makes it so that you can do it without having to be an accountant, and you know it's being done correctly.

So thank you and have a great day, and I'll see you in the next video.