Many eBay sellers face challenges when recording their sales transactions in QuickBooks. Selling on eBay implies that you need to deal with various types of transactions, and all of them need to be accurately accounted for.
As eBay sales increase, sellers receive more transactions to report. The problem is – bookkeeping can be the most confusing and time-consuming part of doing business on eBay, and one of the most significant ones.
At this point, an eBay seller can save substantial time and effort by integrating QuickBooks Online (an accounting solution by Intuit) with eBay.
In this article, we’ll look at how to make such integration work its best for your business.
Here’s what you can learn about eBay QuickBooks integration:
1. Why consider eBay and QuickBooks integration?
2. Recording eBay sales in QuickBooks
3. Sync eBay orders into QuickBooks: How to set up the QuickBooks eBay integration via Synder
4. What objects are created in QuickBooks Online after the sync?
5. Key features of the QuickBooks and eBay integration via Synder
Why consider eBay and QuickBooks integration?
There’s a popular misconception that an Excel spreadsheet is the only thing you need to know how your business is going. But if manually recording eBay sales works for you at the beginning, it most likely will be a nightmare in the future when your business has grown to hundreds of daily transactions. Therefore, optimization of the ecommerce accounting process is relevant for every eBay seller with more than one transaction per day.
Many eBay sellers start to do the accounting in QuickBooks Online, hoping to press one button and forget forever about the horrors of the bookkeeping process. But miracles happen to those who know how to use eBay and QuickBooks integration to the fullest.
Such integration could become a game changer for busy eBay sellers. Just imagine the scheduled action where QuickBooks gets eBay transactions recorded automatically with high accuracy and every detail. For example, you won’t ever be frustrated by finding a product SKU field empty and searching through your products and items for it to add to QuickBooks looming in front of you.
Moreover, the integration of eBay with QuickBooks Online might have additional virtues for sellers. As you know, QuickBooks online creates financial statements for accountants to analyze and give recommendations to business owners. With eBay and QBO integrated, reports will be based on the most accurate financial information, making the job more efficient for accountants and giving sellers a more comprehensive overview of their financial health.
This way, as a business thinks to integrate eBay and QuickBooks Online to manage their financial records, they might receive tools for better management of their accounting. It’ll enable them to get accurate reports on eBay sales, set up convenient categorization processes, and trigger QuickBooks Online’s easy reconciliation with the business bank account.
Let’s look at how to leverage eBay integration with QuickBooks.
Recording eBay sales in QuickBooks
Each sale made on eBay should be recorded accurately in your accounting platform. Recording eBay sales, you should sync all data related to this transaction (shipping, fees, sales tax, etc.). Each of these components has its own specificities. For example, as eBay is famous for the ability to access customers from all over the world, sellers face the challenge of sales tax compliance. Let’s talk more about this issue.
Understand eBay tax obligations which need to be recorded
If you sell on eBay, you should pay attention to the responsibility you have for paying taxes. Every eBay seller should comply with all applicable tax laws and, ideally, should inform overseas buyers about the import charges they pay when receiving the item. Depending on where your customer came from, your tax-related responsibilities may include paying applicable sales taxes, Goods and Services Tax, Value Added Tax, etc.
Since April 1, 2020, about forty jurisdictions require that Internet sales tax be collected. In such cases, the Internet Sales Tax is collected and remitted on eBay sellers’ behalf. It’s very important to keep a thorough record of the tax part of the sale in your reports.
Enter an eBay refund in QuickBooks
If the buyer requires a refund and the sales tax was collected on the original eBay Managed Payments transaction, eBay will refund the sales tax to the buyer. However, if you process refunds through the Stripe platform, the seller is responsible to refund the full amount paid by the buyer at checkout, including any paid Internet Sales Tax. After refunding the buyer, eBay will credit the seller with the amounts of any taxes refunded. These financial operations, including the customer refund data, should be recorded in QuickBooks Online.
Read our article and learn more about a credit memo in QuickBooks.
Include eBay fees when tracking expenses
Any eBay fees associated with the sale of the item also should be recorded. There are several types of eBay fees:
- The fee eBay automatically takes from each sales transaction;
- Insertion Fees;
- Final Value Fees;
- Listing Upgrades;
- Fees in Select Categories;
- Some more.
All these fees should be synced with QuickBooks, which gives the opportunity to correctly reflect the gross and the net amount of the sale.
It can be extremely time-consuming to put all the sales data into QuickBooks manually. Luckily, QuickBooks marketplace features a solution, which allows you to put “fully packaged” ecommerce data from eBay into QuickBooks.
In this article we’ll be talking about Synder. Besides automatically recording eBay transactions, it flawlessly accounts for refunds, taxes, discounts, transaction fees, and, as a result, you can perform an easy account reconciliation. All this will work automatically when you connect eBay to QuickBooks via Synder in a few clicks. Let’s see how this magic works.
Sync eBay orders into QuickBooks: How to set up the QuickBooks eBay integration via Synder
With Synder, you can synchronize ecommerce data from multiple systems in your accounting platform and perform a one-click reconciliation. It takes all the transaction info from your eBay or payment system connected to it and transfers it to QuickBooks Online. As a result, you can expect an easy account reconciliation without a need for manual entries. Let’s learn more about how it works.
The software creates a Sales Receipt+Expense(s) for a sales transaction from an eBay listing. It also creates expenses/deposits/refunds/transfers – for any other type of transaction (adjustment, payout, dispute, etc.).
All you need to connect eBay to Quickbooks via Synder is to follow several simple steps and you can enjoy seamless synchronization afterwards.
Step 1: Creating your account with Synder
First, select the product or products you’re going to use:
- Synder Sync;
- Synder Insights;
- Or both of them for perfect control of your business.
Synder Sync consolidates transaction data from multiple sales channels into QuickBooks Online, QuickBooks Desktop, Xero, or Synder Books.
Synder Insights aggregates data from all sales channels and payment gateways, providing instant insights into the most important metrics of your ecommerce business (product performance, customer behavior, and financial health indicators, such as total sales, average order value, and more). Updates are provided hourly for real-time decision-making.
Step 2: Set up the organization
Now, create your first Organization with Synder.
At this point, you need to fill out your business details in the given form, such as your business name, the country you’re operating in, and some other bits of information that’ll help set up your account correctly.
Hit the Next step button when you’re done.
Step 3: Select eBay as a sales platform
At this step, you’re selecting the platforms to integrate with Synder.
Select eBay by clicking on the corresponding logo.
If your Amazon store accepts payments via payment gateways other than eBay Managed Payments, it’s strongly recommended to connect these payment platforms to Synder as well so that the software can record the data from both ends flawlessly, which will lead to more detailed reports.
Note: Click ‘View all integrations’ to see all the platforms available for integration.
Step 4: Select QuickBooks Online as your accounting platform
Proceed with selecting QuickBooks Online as your accounting platform by picking it out of the list of accounting solutions available for integration.
Synder is also available for integrations with QuickBooks Desktop, Xero and its own accounting software – Synder Books.
Click the Next button to get to the next step where you’ll need to connect the platform and grant Synder the permissions to record data in your QuickBooks.
Step 5: Choose the sync mode
In this step, you can choose the synchronization mode: per transaction or on a daily basis.
- Per Transaction: Detailed records of the transactions from all the connected platforms. The best option if you want to have comprehensive reports.
- Daily Summary: Less detailed records. The best option if you deal with a large number of transactions. Keep in mind that no customer data is transferred to your QuickBooks when choosing this mode.
Choose the one that suits you best.
Don’t know which one to choose? Check out our guide to learn more about the workflow and benefits of both modes.
Step 6: Finalize the integration
Now, you need to finalize your integration by connecting eBay and any other selected platforms to Synder and granting the necessary permissions.
To complete the setup for the eBay integration, choose an account for payouts (usually, your Checking account) that will allow smooth reconciliation of your eBay transactions in one click.
Hit Continue to complete the setup.
Basically, that’s it.
However, if you already have Synder account and want to add eBay (or any other ecommerce platform or payment processor) integration, the process will differ:
- Log into your account, go to Settings on the left menu (there’s a gear icon), and click Add payment platform on the settings page;
- Choose eBay from the drop-down menu and click Connect;
- Finalize the setup by choosing an account for payouts and clicking Continue.
Important note: Your eBay store can disconnect from the Synder account if the eBay account undergoes some changes. If you’ve changed your password or nickname on the eBay side, you’ll need to reconnect your store to Synder Sync.
What objects are created in QuickBooks Online after the sync?
Let’s take a look at the objects which are created in QuickBooks Online after the sync of eBay Managed Payments transactions. It depends on the type of transaction being synced, as Synder creates:
Key features of the QuickBooks and eBay integration via Synder
Multi-channel reconciliation
As an eBay business owner, you should keep close control over the reporting of transaction activity to ensure profitability, prevent any mess-ups in your books, and identify areas for improvement. Reconciliation is a major accounting process that helps you in this regard, and ensures that financial records and the actual bank balance match.
With Synder, you can reconcile in a few clicks with minimum manual input. A few-click reconciliation is available thanks to individual payouts being synchronized automatically in the background. Pre-check all the transactions recorded to QuickBooks from all the platforms connected to Synder, both sales channels and payment gateways, to ease the actual reconciliation process.
Make sure to enable the Payouts feature in the Synder settings to sync them along with regular transactions. Payouts won’t duplicate your bank feed records.
eBay sales categorization in QuickBooks
Good organization and order are important not only on supermarket shelves but also in business on eBay. While a little mess in the supermarket only brings headaches to a supermarket manager, a mess in your books can ruin your online business. Luckily, Synder allows you to automate the income categorization for eBay.
If a Product name from your transaction matches the product name in your QuickBooks – the transaction will be applied to this product and its income account, and all data will be categorized automatically. If product names don’t match, you can create a new product name or set up the categorization based on certain traits using the Synder Product Mapping feature.
The categorization feature also guarantees that you’ll always have up-to-date reports (including the Profit and Loss report) and facilitate account reconciliation.
Detailed P&L and Balance Sheet reports
Connecting eBay to QuickBooks using Synder ensures meticulous transaction tracking, enabling the generation of in-depth Profit and Loss (P&L) or Balance Sheet reports for any chosen period. This integration ensures precise synchronization of all eBay orders and transaction data across all the connected platforms. Having access to detailed eBay data allows you to create complete reports that show your financial situation on all connected platforms accurately.
Inventory tracking
Synder stores items using their names (titles), SKUs, and item numbers from eBay. This information is then utilized when setting up inventory and COGS tracking. As a result, the software can categorize income according to the product income accounts you’ve specified in your accounting books. This functionality is especially beneficial for businesses as it leads to a more efficient stock management system, reducing the chances of overstocking or inventory shortages. If the SKUs match between eBay and QuickBooks Online, they’re automatically recognized as the same. In cases where they differ, the product mapping feature can be used to optimize the workflow.
Multicurrency management
If you receive transactions in currencies different from your home currency, Synder records the amount into your QuickBooks account in its original currency and your home currency. The software takes the conversion rate from eBay or the payment system through which the transaction was made and stores two records in your QuickBooks multicurrency wallet.
Sync rollback
If you’ve noticed any errors in your synced data, you can easily undo the syncs without causing any harm to your accounting data. Once an eBay record is deleted, you can make necessary adjustments to your configurations or apply automated categorization rules, and then seamlessly resync the accurate data back into your books. The rollback can be done for one record or for several at once.
Note: Rollback doesn’t reinstate the number of syncs available.
eBay QuickBooks integration for sellers: Conclusion
Synder is an ecommerce accounting automation solution that allows you to synchronize payment systems or ecommerce platforms with accounting software and automatically manage your finances. As a result, you’ll have accurate data in the accounting system, correct tax and product reports, and easy account reconciliation.
Synder users can leverage the functionality of QuickBooks to the full extent and enhance their reconciliation by preventing mismatches and eliminating the need to recheck the data. What online business owners appreciate about the app is the simplicity of setting up and using it, which doesn’t require having special technical skills to work with it. Once set up, Synder works automatically in the background.
Synder is your next step on the way to simplifying ecommerce accounting and enhancing financial management. Try Synder today to experience accurate data, streamlined reporting, and effortless account reconciliation with the power of QuickBooks integration. Start optimizing your online business now!
Disclaimer: The article isn’t a legal guideline. For professional expertise in taxes or other legal issues, we recommend consulting a CPA or a certified tax practitioner.
