By Financialsai Team • 5 min read
Getting Started with Confidence
Congratulations on your store! Now, let’s keep it legal and profitable. Here is a simple 4-step framework for new owners.
Step 1: Separate Your Accounts
We mentioned this in our “Mistakes” article, but it bears repeating. Open a business checking account and a business credit card. Run ALL expenses through these.
Step 2: Choose Your Software
Don’t use Excel. It doesn’t scale. Use cloud accounting software (like Xero or QuickBooks) or an automated platform like Financialsai that connects directly to Shopify.
Step 3: Understand COGS (Cost of Goods Sold)
Your profit isn’t (Sales – Expenses). It is (Sales – COGS – Expenses). You need to know exactly how much each unit costs you to land at your warehouse (product cost + shipping + duties).
Step 4: Reconcile Monthly
At the end of every month, match your bank statement balance to your accounting software balance. If they don’t match, you’re missing data. Find it before it piles up.
