NOTE: Xero Inventory functionality is not compatible with DEAR. We recommend reading the Getting Started Guide together with this setup article.Ī video tutorial on Xero Integration is also available. For more information, refer to Switching Accounting Integrations. NOTE: If necessary, you can easily switch between accounting apps, such as changing from Xero to QuickBooks Online, switching from one Xero organisation to another, or disconnecting Xero/QBO to use DEAR as a standalone accounting system. This means that all inventory-related purchases, sales, and manufacturing will be performed in DEAR Inventory and then synchronised over to Xero. Monitor and analyse COGS: Regularly review and analyse your COGS in Xero to make informed business decisions, identify trends, and optimise pricing and inventory management.Once DEAR Inventory and Xero are connected, DEAR Inventory becomes the central point of all inventory management within your business.This will ensure your COGS and other financial metrics are always current and accurate. Configure automatic updates: Set up automatic updates between Shopify and Xero to sync inventory and financial data in real-time.With an integration app, you usually just need to ensure the SKU matches on both Shopify and Xero. This will allow the platforms to sync data accurately and maintain up-to-date COGS information. Map products in Shopify to inventory items in Xero: Ensure that each product in your Shopify store is mapped to the corresponding inventory item in Xero.Assign a purchase price and cost of goods sold account for each item to track COGS accurately. Set up inventory items: In Xero, create an inventory item for each product in your Shopify store.This will allow data to flow seamlessly between the two platforms, making it easier to track COGS and other financial metrics. Integrate Shopify and Xero: Begin by integrating your Shopify store with Xero using a third-party app like Post to Xero, or a custom-built solution.How to Track COGS in Xero for Your Shopify Store Accurate tax reporting: Properly tracking COGS ensures accurate tax reporting and helps you avoid potential penalties and fines.

Streamlined financial management: Seamless integration between Shopify and Xero simplifies e-commerce accounting, allowing you to focus on growing your business.Real-time updates: Sync your inventory and financial data in real-time, ensuring that your COGS and other financial metrics are always up to date.Automation: Integrating Shopify and Xero automates the process of updating COGS in your accounting software, reducing the risk of manual errors and saving time on data entry.Benefits of Integrating Shopify and Xero for COGS Tracking Tracking COGS is essential for e-commerce merchants as it helps determine gross profit margins, enables accurate tax reporting, and provides insight into business performance. These costs include raw materials, labor, and other expenses directly related to the manufacturing process. The cost of goods sold (COGS) represents the direct costs associated with producing and selling your products. What is COGS and Why is it Important for E-commerce Merchants? In this guide, we will explore how to track COGS in Xero for your Shopify store and the benefits of seamless integration for e-commerce accounting. By integrating your Shopify store with Xero, you can easily and accurately track COGS, helping you make informed financial decisions for your business. E-commerce merchants on Shopify understand the importance of tracking the cost of goods sold (COGS) to maintain a healthy bottom line.

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