Shopify is favored by 15% of the large enterprises and is the cream of the crop for 65% of small businesses. The numbers are enough to calculate the broad appeal of the platform. Moreover, the beloved tool currently has more than 4.8 billion active stores, and approximately 700,000 new merchants joined the tribe in 2024. Despite the exclusive features like centralized order tracking, sales tracking, fulfillment automation, and inventory tracking, and being the most preferred all-in-one e-commerce platform, Shopify doesn't offer the facility of order accounting, bookkeeping, financial reporting, and other functions. 

There are three ways to handle accounting with Shopify:

1. Use Third-Party Apps: The merchant needs an additional order accounting software to perform accounting tasks such as creating financial statements, reconciling bank accounts and credit cards, and managing bookkeeping.

2. Hire an Accountant: The merchant can hire an accountant or opt for bookkeeping services to manage Shopify’s finances. 

3. Use Dedicated Accounting Software: The merchant can opt for a full-featured order accounting software and connect it with the Shopify store to streamline finances efficiently. 

According to the business’s requirements, the seller can choose the right way to handle order accounting. Integrations such as NetSuite and Shopify can address numerous problems of growing e-commerce businesses. It helps avoid hurdles in order accuracy, data entry, inventory stock levels, and financial reporting.

What is NetSuite?

To manage primary business operations, NetSuite creates a robust framework. It combines multiple operations into a unified system to improve the efficacy. The system is built around a central database rather than managing numerous disconnected spreadsheets and applications. 

NetSuite ERP supports the core functionality of a business:

1. Financial Management: NetSuite ERP manages financial transactions, including key financial functions such as tax management, general ledger, accounts payable, and accounts receivable. An e-Commerce merchant can automate bookkeeping tasks through NetSuite and quicken the financial closing processes

2. Inventory and Order Management: E-commerce sellers can utilize NetSuite to track the inventory stock levels in real-time across all sales channels. Merchants can also benefit by automating operations such as sales quotes, order shipping, payment, and order fulfillment.

3. Customer Relationship Management: NetSuite’s Customer Analytics module supports sellers to analyze customer behaviour. Merchants can partition their customer groups on the basis of preferences, browsing history, and past purchases. The module can also help forecast churn rates, sales, and even prompt marketing campaigns.

4. Supplemental Functionalities: Merchants can opt for optional modules for supplementary functionalities such as Human Resources (HR), supply chain management, Warehouse Management System(WMS), and Professional Services Automation (PSA). 

Why do Shopify sellers use NetSuite?

Shopify NetSuite integration automates complex workflows and allows for powerful financial management capabilities. More than 43,000 customers worldwide choose NetSuite for their business’s accounting needs, and NetSuite has remained the most preferred platform for Shopify order accounting for over a decade. The platform is designed to efficiently handle and automate tasks. With NetSuite order management for Shopify on their side, the merchants can:

A. Enhance Financial Accuracy and Automation:

1. Real-Time Synchronization: NetSuite order management for Shopify allows instant and accurate data synchronization into NetSuite. Customer information, inventory changes, and sales orders are synced to the platform for time-saving and error-free processes. 

2. Automated Revenue Recognition: Merchants may take days just to create sheets for revenue generation, but NetSuite’s automated revenue recognition capability identifies the revenue in just a few clicks, according to accounting standards such as ASC 606. This process is crucial for businesses with complex models. 

3. Payout Reconciliation: NetSuite can automatically pull out the payout information from Shopify. The platform can track income and expenses to manage cash flow and can flag the transactions where the Shopify amount doesn’t match NetSuite’s recorded amount. 

B. Inventory and Order Management:

1. Multi-Channel and Multi-Location Support: NetSuite supports tracking inventory across multiple warehouses and combines data from additional sales channels to create a wholesome source of data. 

2. Inventory Control: NetSuite order management for Shopify integration features advanced inventory with real-time synchronization of stock information. The merchant can avoid issues like overselling or stockouts. The platform can foresee inventory levels for each product by analyzing the sales and demand patterns. 

3. Order Fulfillment: When a customer places an order on Shopify, NetSuite automatically syncs the order information and initiates the order fulfillment process. The shipping updates and tracking information are sent back to Shopify and the user. It improves the order fulfillment efficiency, reduces customer support costs, and enhances operational efficiency. 

C. Reporting and Analytics:

1. Consolidated Data: NetSuite has deep access to your data. It can analyze and mend it into a useful and consolidated database. 

2. Customizable Dashboards: Based on specific requirements and KPIs, online sellers can personalize the dashboards. 

3. Global Capabilities: NetSuite accepts international e-commerce businesses and offers multi-currency and multi-subsidiary management capabilities. Businesses can now access localized tax reporting and consolidated global financial reporting from a single platform. 

NetSuite offers numerous key advantages for Shopify businesses. The robustness and reliability are the top reasons for NetSuite being the most favorable e-commerce accounting software. Robust NetSuite Integrator for Shopify by WebBee is specifically designed to outgrow general capabilities and support high transaction volumes. 

Wrapping Up The Convo

Shopify is the leading provider of E-commerce solutions and processes over 200 million orders per month. The platform has an average of 2.1 million daily active users, enabling businesses to expand exponentially and attract insane traffic. Since Shopify doesn’t support order accounting services, an online seller can integrate the Robust NetSuite Integrator by WebBee for Shopify to handle and automate order management and order accounting. The real-time data synchronization and automated inventory management allow the merchant to focus on the business’s core mission. 

To unlock more information, drop an email to info@webbeeglobal.com. The experts from the team will reach out to you and clear all doubts/enquiries.