Calculate product cost
Connect units sold with approved cost history and identify missing or zero-cost products before posting COGS.
Shopify accounting topic hub
Shopify COGS and profitability
Record product costs and liabilities correctly so Shopify gross profit is based on economic activity rather than net deposits.
3 focused guides
What you will learn
A reconciled bank balance does not guarantee a reliable profit number. Shopify profitability depends on separating gross sales, payment fees, refunds, product costs, inventory movements, gift-card liabilities, and timing differences.
Use this hub to calculate COGS from reviewed product costs, keep gift cards out of revenue until the correct event, and find bookkeeping mistakes that distort margin even when cash appears correct.
Protect liabilities
Treat gift cards and similar obligations separately from sales until the appropriate recognition event.
Read profit correctly
Find errors that distort revenue, fees, tax, inventory, clearing, and gross margin.
Continue through the topic
Every guide in this hub.
Follow the sequence or choose the specific accounting problem you need to solve.
Gift cards and liabilities
How to account for Shopify gift cards in QuickBooks
Record Shopify gift-card sales, redemptions, refunds and outstanding balances in QuickBooks without recognizing revenue twice or losing the liability.
9 min read →BookkeepingSeven Shopify accounting mistakes that distort your profit
Find the Shopify bookkeeping mistakes that overstate or hide profit, from net deposits and duplicate sales to tax, gift cards, COGS and month-end cut-off.
9 min read →A practical route
Use this hub in three passes.
- 01
Start with the COGS guide and validate product-cost coverage.
- 02
Review gift-card liabilities and other amounts that should not be immediate revenue.
- 03
Use the accounting-mistakes guide as a final profit-quality check.