WSW - Shopify Fees
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[00:00:05] Dan DeLong: Welcome to another Workshop Wednesday brought to you by schoolbookkeeping. com, helping you be the best bookkeeper that you can be because we have casual conversations for serious workflows.
And of course, we're being joined again by by Rachel. So we have an announcement to make for the Workshop Wednesday family. Those of you that are watching, Rachel has graciously [00:00:30] accepted to become the new co host of the workshop Wednesday. So thrilled to have you joining us again, and we'll see more of you on a regular basis.
So Rachel what are your thoughts about this?
[00:00:42] Rachel Dauchy: I'm really excited. I don't like to talk about bookkeeping or accounting at all, obviously, you can tell. No, it's pretty much the only thing I do talk about. My kids always tell me to be quiet. So yeah, I, I love it. I love working out issues.
I, I ha every single day I have something that I think to myself, [00:01:00] I don't know how to do this. So because there's just so many diverse things that we come across that the only way I think to be successful in this industry when we're supporting clients is to really rely on each other and tune in and check into what everybody's doing.
And hopefully I can learn as much as I can and so can everybody else.
[00:01:21] Dan DeLong: Yeah. So we're not only will you be a co host, but you'll also be a guinea pig because you come up with some interesting, you come up with some interesting things to [00:01:30] talk about as far as like, how do I do this inside a QuickBooks.
Rachel had joined us for our e commerce fundamentals discussion and series that we did a couple of months back. And so now we're getting into some of the more advanced stuff that is not a necessarily a fundamental type of thing when it comes to e commerce
Today we're actually going to be talking a little bit about something that's A little bit more advanced when it comes to, e commerce accounting.
And it's really one of those things that I have discovered, [00:02:00] and I don't know about you, Rachel your thoughts on this is that a lot of the applications that are out there. that and especially Shopify as well, as we'll talk about Shopify fees getting those fees into QuickBooks.
And we'll discuss, like where we're at without any integrations. And then, so basically lay out what the problem is. And then we'll talk about, how we can work with that, but I haven't seen any integrator that, that really [00:02:30] addresses this sort of thing of you.
[00:02:33] Rachel Dauchy: Well, Dext, which I know we're going to talk about,
we'll
[00:02:38] Dan DeLong: talk about it but when you look at, okay how do I get my Shopify sales data into QuickBooks, those integrators are all over that. Let's get a lot of,
[00:02:49] Rachel Dauchy: yeah, there's a lot that will bring an income, but for expenses, it's a little bit harder because I don't know about you, but I've noticed that the, they have a lot of time.
The [00:03:00] automation integrators have a hard time. splitting up the different expenses into different categories. And so that kind of thing really just does require some manual stuff. Sometimes when it comes in through the bank feed, but there is, Ducks does do a great job with it.
[00:03:17] Dan DeLong: Yeah. So we're going to talk about a couple of different ways.
I, I I took it upon myself I really want to crack this nut here. Because the last thing we want to do is just Rely on one, one thing or one [00:03:30] tool which either doesn't do things holistically or paints, paints the right picture, because let me share my screen and we'll talk about what that looks like.
What the problem is, right? So I'm looking at the back end of a Shopify store and this is the billing section, right? Where Shopify will charge the Shopify owner a fee, a dollar amount. So this last fee was 319 and 45 cents. We look at it. All [00:04:00] right, there, those fees are broken out into a variety of things.
So this guy has some apps and shipping 15 shipping fees and then subscription, right? So those are the general categories that we're dealing with here that make up this 319, right? As a bookkeeper, Rachel, you would want to categorize these. Three areas in three different places.
[00:04:30] Cause apps are one thing shipping is another, and this is shipping what it costs them to, to ship, not shipping income. Because again those those sales bridges or connectors, they do them well, they do that just fine. They do the income side of things. What they charge the customer for shipping, but what they, what Shopify charges.
Their customer, the Shopify store owner, they put in [00:05:00] here, right? So this is part of the challenge. So this is something that you would want to categorize. You certainly don't want your shipping subscription and apps to be collapsed upon, in the same thing, right? So here we look at, here's this transaction, 319 and 47 cents.
That's going to, if you rely on the bank feed. That's what one that's going to change this amount is going to change [00:05:30] monthly, all the time You look at the other charges and they're never the same fee, right? So you're not gonna sometimes there's going to be more shipping.
Sometimes there's going to be less apps Sometimes there's going to be a credit. We'll talk about that because that's more of a That's a that's a one off, type of thing.
[00:05:49] Rachel Dauchy: But if they're a high volume, there's going to be a shipping credit usually every single time,
[00:05:54] Dan DeLong: right? So this 1 amount that comes in, it's always going to be.
[00:06:00] segregated differently each time, right? Because maybe they added some apps this month or shipping is different or, the variety of different things. So there, therein lies the challenge.
[00:06:12] Rachel Dauchy: Yes. And can I tell you what I used to do in the very beginning when I started? Several years ago now, I, somebody told me, Oh, that's just shipping.
So out of the bank feeds, I would just quote it straight to shipping. And then I thought, Oh, wait a second. I should go into Shopify and pull the [00:06:30] backup so I can attach it. Oh, wouldn't you know, shipping apps and subscription. And I thought, Oh boy. I, and so what I started doing is I just started splitting it right out of the bank feed.
And then we get into the I actually really don't want to do this manually straight out of the bank feed and then go into Shopify and grab the actual invoice. And so that's where we are.
[00:06:55] Dan DeLong: So what we're dealing with is, okay how do we get, and I did the same thing, but I just put it [00:07:00] to, sales channel Shopify, subscription fees.
Yeah. And it all, it takes
[00:07:06] Rachel Dauchy: one, person that inadvertently, everybody means well, but just steer you down the right, the wrong direction. And it's really only when you go and poke around and then you end up finding it and then you realize, Oh, no, it's gotta be split. Thanks Shopify for lumping that all into one thing.
Exactly.
[00:07:24] Dan DeLong: This is part of the challenge of, of what we end up dealing with as a, accounting [00:07:30] professionals that, Shopify does. It's thing well, and it allows people to sell stuff online. They're not necessarily too concerned about what happens after that, right?
Like I was just talking with someone they're using Stripe and they're doing everything through Stripe. And. They they charge a transaction fee for their customers and what they did was they create, they keep creating new transaction fee items and they spell them differently.[00:08:00]
Capitalization matters, right? So then it comes in as a unique item, right? And then, so it just bogs down the works, right? Because they're doing things that they need to do to make a, Make their business go and make sales. And that's what Shopify and Stripe, do well is make that available.
Just to, I
[00:08:22] Rachel Dauchy: also want to just add in one more thing too. FYI, when we see the Shopify charges come in, [00:08:30] these are typically. Always for shipping subscription and apps. I have a lot of Shopify clients and it's really only these three things. It's never Shopify capital. So you're going to see that separately.
And there's a separate place to go in and look for Shopify capital. It is not this, we're just talking about expenses.
[00:08:51] Dan DeLong: All right. So I'm going to throw this over here. Cause what I did was I, while you were here, I exported the bill, right? And what happened [00:09:00] is that bill got sent to me as a CSV file, right?
So if we take a look here is the charge category and the individual charges that are listed there. So what I did, or what we want to do is go into QuickBooks and create an item for these, this charge category. And then that way you can specify, What account that needs to be posted to.
[00:09:30] So I have let's go over and take a look here. Cause I was got apps.
So
[00:09:37] Dan DeLong: I created a non inventory item called apps and then posting that go down here. Here's where we want the apps to go to as a sub account of sales channel fees. So that way, when he looks at his profit and loss, he can see how much am I spending on apps to Shopify? We do is going to use this tool [00:10:00] called Saasant, right?
So I don't have to do anything to the to the CSV because I'm using the tool Saasant here to be able to map and manipulate the data based off of what's already there. you just upload the CSV file.
It's already got the columns mapped to where I went, where I need it to map to. And then what I can do is I can show a prior one. [00:10:30] And so let me go back over here. Where is, uh, so here's a prior one for 500 and. 81. So if we go back over here, we'll take a look at this
581, right? And this is one of those that has a chipping credit
[00:10:49] None: shenanigans.
[00:10:50] Dan DeLong: And we'll talk a little bit about that. But so now by using the Saasant tool and mapping it appropriately all I have to do is [00:11:00] export the bill and then use Saasant to map it to, as a new import through through the company and then just process it.
I don't even have to ask you
[00:11:10] Rachel Dauchy: a question. What? Why are you choosing to send it as an expense and not a bill?
[00:11:17] Dan DeLong: Because they've already paid it, right? So this is already something that's been paid, right? So this is not a bill to pay later. It's, they've, they charge their credit card, 581. [00:11:30] So it's already expense, right?
Yes. So this is what happens is it creates an expense transaction. I will post it to Shopify sales channel, fees, clearing, yay, more clearing accounts. But this is just another current asset account that I created to, so that you can create the expense. All right. And it breaks these things down exactly the same way that the export one.
So
[00:11:58] Rachel Dauchy: Love That!!
[00:11:59] Dan DeLong: All [00:12:00] the apps, it has all the shipping and it gives, a little bit more detail about the different shipping. So that if they ever needed to, look at it from the QuickBooks perspective, they'll have that information there. And then the only challenge though, and this is part of Shopify shenanigans is, and I reached out to Shopify just to confirm, is this shipping credit. So when there is a shipping credit, meaning that somebody they printed a shipping [00:12:30] label and then maybe the customer canceled the order, right? So they obviously don't need to ship it to anybody anymore. So they'll cancel the shipping and then they'll get that shipping credit.
It's not part of the exported bill. Which for some reason, which that makes zero sense to me or anyone else, that would be that because that's part of, and that's part of the challenges that we have. And we see this with, these sales channels or these the way things happen in [00:13:00] platform X that impacts platform Y, right?
So you have to, if there is a shipping credit or if there is, some kind of credit. credit or something like that it ends up showing up differently. We can only provide so much feedback to Shopify before they change something and put it in. Where it's supposed to go. . I
[00:13:24] Rachel Dauchy: didn't realize that it wasn't included in the export CSV.
Yeah, because I haven't done it [00:13:30] that way. When I was doing it, I, like I said, I would just go in and I would just pull the actual bill and I would just break it down and add the credit. And so I wasn't getting the line by line by line. I would just take the subtotal. And I love that this has the line by line, but I guess you're right.
If it doesn't have the shipping credit, then you'd have to, maybe add that in Saasantt and then upload it. Which I do like that line by line and yeah, you're right. I guess [00:14:00] I was thinking if I could, do it as a bill that I could do recurring, but it's never the same. Amount ever. So that's, that wouldn't work.
Yeah,
[00:14:07] Dan DeLong: exactly. Yeah. So that's the whole idea of the of this process, of being able to do that. You can set up, some more kind of automations with the, if you don't have access to the, to, to the Shopify dashboard, which a lot of accountants, bookkeeping professionals won't or don't want to.
Maybe that's not part of their scope or anything like that. They can send this [00:14:30] they can export the bill and then just forward it to you. Or things like that, because as soon as you click on export bill it, it emails it to whoever the user was that that did it, right? So they could set up a, an auto forwarding rule for, for that sort of thing so that it automatically comes to you.
And then you've got that breakdown as a CSV to bring it in that way, assuming you have an active subscription to Saasant.
So that's one of the ways to do that. And that is part of the challenge that we have as, as [00:15:00] accounting pros that we're working with the Shopify clients is that Shopify doesn't care about this kind of stuff, they'll just build them and then, it either goes to one account, not split out, or, somebody has to then get that information to be able to make that split.
manually. This way, the lion's share, with the exception of the credits, it's going to be already and automagically done for you. But you do it a little differently. And I wanted to talk about [00:15:30] how you do that. And I don't know why that did this that decided to show it that way. But there's your screen.
Now, what do you use to do this sort of thing?
[00:15:38] Rachel Dauchy: Yeah. Oops. I really hold on. Let me go. I didn't want to. I didn't want to show all that. But anyway so I, yeah, so I'll show this. I'll go into the ad documents and show how you can do an auto push. But what I do want to say though, is I do not recommend depending on your client for all the things in [00:16:00] Shopify.
What that's mandated by me, I have to go in as a Shopify collaborator. So I have, I don't get added as a staff. I actually go in as a collaborator and then they give me access to different things, including apps so I can add Dext and, just things like that. And then I can just pull the bills and pull the things.
Otherwise I find that it just eats up so much time. So that's just a little. Yeah, that I usually always say is and a lot of [00:16:30] bookkeepers and accountants will say to me, I don't ever have access to that. And I usually always say, get it because otherwise, it's really difficult to do. It's just
[00:16:41] Dan DeLong: going to slow your workflow down when you need something that you, yeah,
[00:16:46] Rachel Dauchy: and there and then sometimes the bookkeepers will say my clients don't want to.
And my answer is there are ways that, if you become a Shopify partner and collaborator, then you can go in that way and it's completely separated. [00:17:00] You're not, they can give you, you don't, you They can not give you access to their items. They can get very granular on what they, Yeah, you can get very granular.
So that's a really important thing that you can then go and tell your client is that, I'll request collaborator access, powers in your hands. You can tick the box of, what I have access to, this and that. I usually always need reports. Things like that. I do recommend that. I personally wouldn't take on a Shopify client if they didn't give me access to their Shopify, but anyway.
Okay. My [00:17:30] team is super, super fast in deck. So I have to, I was like, I opened this up and I was like, I better do this before she goes in and does it. So this client is not on Shopify. But they have a lot of receipts pending, so that's why I just wanted to use this for example. This one Dext opens up with a dashboard with all of the receipts that either they have uploaded, or that have auto fetched.
And with this one, they usually have a combination of both. [00:18:00] This client uploads receipts. And then sometimes it's auto fetched. For example, I'll open up this one.
So
[00:18:08] Dan DeLong: let me ask you. So as far as the Shopify with Dext, you have to add it as an app on. Yes. Yeah. So I was just gonna
[00:18:17] Rachel Dauchy: show I was actually getting ahead of myself.
I was showing how to categorize it when the thing is open, but actually I'm gonna go in and show what you need to do first. So what you would need to do first in order to set it [00:18:30] up is you can see right here, Dext has this feature called invoice fetch. Okay. So I'm going to click on that and I am going to show where you can actually add a connection.
And they don't have any invoice fetch on this one, but I would add connection here. And this is the greatest thing in the world because what it does is it just, you're a fan.
[00:18:53] Dan DeLong: You're a fan.
[00:18:54] Rachel Dauchy: Yeah, I really like it. So what it'll do is it'll give you recommended. But if you want to see the full [00:19:00] list, then you can search.
So I am going to search for Shopify and you can see right here. There we go. Now all of this does is give you the bills. That's it. No, nothing else. But again, this is what we're talking about. Just the bills. So I can select the user. And then I can ask client to connect and it'll send them a thing where they put in their Shopify credentials, or I can connect it myself.
And that's what I was just referring [00:19:30] to is if I have app permissions, which I always request access to, then I can connect it myself, that kind of stuff saves, it saves me oodles of time. Now here's the thing. The one thing that I will say is that darn connection sometimes breaks. And so then you have to go back in and reconnect Shopify.
But you just, all you do is just go back in and reconnected. It's not the end of the world. But what it will do is then in your dashboard here you will [00:20:00] see Shopify, you'll see all the bills and then you can just let them, collect for the month and then. You can go in and then publish them to QuickBooks as an expense.
You can either choose bill, you can either choose expense, whatever. And then I'm going to go in to this one. I just don't want to show, okay, I don't want to show that. I don't want it doesn't show the number. Okay. Here is where you can then, Split the receipt. And that's what I was saying before is [00:20:30] this is actually how I did it before.
Rather than get the line items like you could publish it to But
[00:20:37] Dan DeLong: You would see an image of the bill. Yes, an image of the
[00:20:40] Rachel Dauchy: bill. And what I would do is, And you need to be able to make that split. Yeah, so in, in Dext, do you say cash? It just goes as an expense. If you want it as a bill, then you could go to bill.
Cash makes it just go straight. So it matches up with what's in the bank feed. So you would create your line item here. [00:21:00] And then here is where you can split it. And then I would just literally add a line down here for the credit. And then you can see it gives you an area where you can describe you can say what it is.
So you can say shipping. right there if you need to. And then this client's on WooCommerce, not Shopify. So that's why we're not seeing the Shopify stuff. But anyway and then, if you needed to do it to the product service item and all of the things, you can even split it up by class and location and total up your entire [00:21:30] thing.
It'll even, help balance it out for you if you need to. And then you select the payment method that it's going to, if it's going to the checking account, you select that. And then it'll give you a little description of your little sub split here. And then you can publish it.
It can give you other nice options to add it to an expense report if you're using that feature. That Shopify probably wouldn't go to an expense report, but but Dext has all kinds of different. Features that you could, but now that's how [00:22:00] I used to do it. And so I wasn't doing the line item.
The bill would pop up right here and I would literally just take the subtotals, split it out, boom, send it, call it a day. And I had, and for very high, I had a client that had. Three Shopify stores. So I had it in threefold and it was just constant. They weren't coming once a month, they were coming several per week.
And I would have to go through many a lot so that to me, this was the [00:22:30] faster way. I don't know if I, how do I stop sharing that?
[00:22:34] Dan DeLong: Oh, I'll just turn it off.
[00:22:35] Rachel Dauchy: So I don't know if that It's funny. See, and we're all different. I find doing it that way is faster, maybe, than bringing it in through Saasantt.
I don't, or Saasantt. I don't, everybody calls it something different. And it really just depends on what's fast for you? And what's your preference? I would have to say if you are pulling it [00:23:00] into Dex with autofetch, what I would recommend actually is if you actually share that again, I forgot to show something.
What I would do is I would actually go into, I would create rules. Create rules suppliers, you can create rules in here and then you can say, anything that's I don't know how you do that. I forgot how you do that in here. Maybe you do it in comps.
[00:23:25] Dan DeLong: You can specify based on the vendor.
[00:23:28] Rachel Dauchy: Yes, you can [00:23:30] specify based on the vendor. And then I believe you can also do it. Based on the based on the, you can unshare this now based on the what's it called the like in, in QuickBooks online, those rules where it'll take like description, you can say specify the GL expense accounts for this, that, and that, and it'll split it.
And then you can, maybe then you can have it on auto post. I actually really haven't even gotten into that yet, but there's a lot of different options. And so [00:24:00] I'm inclined to do it this way. Cause I like that auto fetch. I don't want to really have to go into Shopify. Although I am in Shopify every day, but I just really, I like it coming into Dext.
I'm just, it's one of those things where I've adopted that. I do
[00:24:14] Dan DeLong: appreciate the automatic patching of that.
[00:24:18] Rachel Dauchy: Yeah. My team, they, I'm telling you, this is why I had nothing in Dext because they're really fast and they go into Dext, quickly and push everything. We're all trained on it. We all use it.
And so [00:24:30] that's, for me, that's. That's the way I like to do it. But I also like doing it that Saasantt way, too, because I do appreciate having the individual line items I like it that way.
[00:24:40] Dan DeLong: Yeah that's my next figuring is how do we make this automatic, right? So that, that split just happens automatically, which, it really should, right?
Because that's the whole, beauty of automation and things that do have that happen automatically. You're just Doing [00:25:00] your work and your bookkeeping is done for you. That, that's the thing that that, that would be wonderful.
So if I didn't have to sign in to Shopify and download, export the bill and Yeah, exactly. It doesn't take long. And it takes significantly less time than manually. Changing it. And I don't know, maybe we'll have to do race, to see
Yeah. See who does it better, who does it faster,
[00:25:24] Rachel Dauchy: yeah. 'cause I like to do it pretty fast. And then also what I was gonna say is you definitely. [00:25:30] It can't do it 100 percent for you, but it can definitely assist you, which I really like. Now I'm actually looking in the Shopify app store right now.
I'm looking for Shopify bill automator, because guess what? I, maybe there's something there.
[00:25:46] Dan DeLong: Yeah. I'm sure someone has come up with But even some of the automation tools that work off of triggers like Zapier, that was the first thing that I thought was like, okay if that charge report is available, Adam, as a trigger, [00:26:00] then you could trigger that automation through it's still, that is not one of the functions that that they're allowed to trigger off of, which is sad because again, this is.
Holistically Shopify being a sales channel, you don't just want to work on the sales side of things. It's the whole picture.
[00:26:20] Rachel Dauchy: That would mean that the folks at the shop of folk, that's what they're called. I'd have to really think about all of the accounting involved in [00:26:30] how we would like it.
[00:26:31] Dan DeLong: All of the other, all right. Yeah. So
[00:26:35] Rachel Dauchy: They would have to, take our considerations, into account and I just, I've not typically seen that.
[00:26:44] Dan DeLong: Yeah y'all get the Milton from
From office, but yeah. We're going to need you to move down to the basement because now we're going to, we're going to throw shipping credits at some non
[00:26:56] Rachel Dauchy: exception line.
Yeah. I thought Milton was the guy with the red stapler. He's the [00:27:00] one that had to go.
[00:27:01] Dan DeLong: Yeah. Yeah. You're treated like Milton.
[00:27:03] Rachel Dauchy: Oh, it's treated like Milton. Okay. Okay. Yeah. We don't want to be Milton. So there isn't anything in the Shopify app store except for sales sync, of course. But but yeah, I am, I would be curious to know if there is.
It's something, that could automate that, but yeah, anyway. The only
[00:27:20] Dan DeLong: person that's really concerned about it is the bookkeeper. Because they want to classify these things accordingly. [00:27:30] And then ultimately the business owner would want to know that because then yes, then now you can tell that now you can tell them, okay, of this 500 357 of it was for shipping.
[00:27:41] Rachel Dauchy: Yeah. And it is actually, it's really important this split because it, For some reason they just bundle all them up into one charge. And when you have a really high volume seller or you've got multiple stores, which Dan and I'm saying, Dan, like a third person, you and I tend to [00:28:00] have because you and I are both very inventory focused and that's really Pretty much all I do now.
This is, this can get really, this can add up really fast. And it's really important for them to see Freight Out. I always call it Freight Out. It's, I think that's the appropriate thing to call it. And even subscriptions, because, sometimes that's crazy. And then the apps. So like sometimes they just add app add.
Or they've got other people in their operation that are just adding, and then it's recurring [00:28:30] every single month. This is something that I find that they business owners really find valuable, so you really don't want to just trust what's coming through the bank feed really do understand what's going on with your Shopify fees.
[00:28:45] Dan DeLong: We just there's a guy that used to I used to work with that at Intuit. He would say, in God we trust, all others bring actionable data. And that's what this is doing is allowing, you to provide a business owner actionable data, not just, [00:29:00] okay you're spending 500 a month.
Yeah. Shopify, um, that's a cost of doing business with them. Yeah. And as long
[00:29:07] Rachel Dauchy: as I've, now I've moved into more more accounting once we do have the accurate books. It's one of those things where you don't want bookkeeping just to be your mechanism to plug those numbers into your tax return.
No, you want to make sure that you have this accurate data at the transaction level to fully operate your business. And the more [00:29:30] information you have, That's really breaking it down. The more successful the business will be 100%.
[00:29:38] Dan DeLong: And then you can actually use this, as more of a value, value add back to your client and command a higher fee.
Yeah, because you're actually bringing this to the table for them to be able to make decisions. business decisions based off of the data that's collected. Yeah,
[00:29:58] Rachel Dauchy: and all the e com [00:30:00] specialists that I know that are really cool and I idolize, and they're incredible accountants, trust me, they, they do this, and they know what they're doing, and they know industry standards, and they know typically what goes on in this world and what you should be looking at and what are typical costs.
And so what are typical percentages and margins and that kind of stuff. So the more you can really become a specialist that way, they'll really value you and definitely [00:30:30] command a better rate.
[00:30:31] Dan DeLong: And this is not. Beholden just to, online sellers or Shopify. This is just anything that will allow you to make expand on the dollar amount, whatever that happens to be so that you can actually see what is making up this number.
You your whole business was all built based off of okay. Do not live in the bank feed for a payout. Of a credit card deposit because, and don't just put it all to revenue because there is a [00:31:00] breakdown of dollar amount and you need to understand what that breakdown is for, just like living, people live paycheck to paycheck, there's a gross pay, there's taxes, there's all this other stuff, 401k deductions and all that.
Like that ends up with the net pay. You really want to understand all of the other things behind that net transaction.
[00:31:22] Rachel Dauchy: Yeah, that's what makes you really a successful business owner, as you know all those things. Wait, I want to ask you one last question because before we go. [00:31:30] Now I, Put these things in a specific place on the PNL.
So where do you typically put them?
[00:31:38] Dan DeLong: As we had talked on on the fundamentals, anything that is dedicated to sales, the sales process would be a, cost of goods sold. Yeah, that's how I do it. Yeah,
[00:31:52] Rachel Dauchy: these are, so these what we've been talking about this whole time are costs of goods sold because they're cost of selling these [00:32:00] things.
It's directly it's a cost that, that is incurred from selling your items. That's really what we determine as cost of goods sold.
[00:32:07] Dan DeLong: Now, where you can look at both sides of the equation is the apps and the subscription, right? Like some, it's really hard To get to, the cost of a sale,
As opposed to, apps and subscriptions, those would be more of a, an overhead type of thing that you could.
Yeah, you could go
[00:32:26] Rachel Dauchy: either or with those, but I still to put them in cost of goods [00:32:30] sold just because I feel like they're directly related to your platform. Your platform is really essentially the representative of your items. And so that's usually where I put it. And in the the chats that I've had with other people in the industry, that's usually where they do too.
That's what I go off of, but I don't know.
[00:32:51] Dan DeLong: If you didn't have that sales channel, you wouldn't have that sale. Yeah, exactly. You could easily make that argument that way.
[00:32:58] Rachel Dauchy: Yeah. But I'm [00:33:00] sure maybe somebody could come and argue that it's the other way, and that's all finding great, too.
[00:33:06] Dan DeLong: All right. So always a pleasure to see you. And thank you for joining us. And thank you for accepting. This co hosting duties. So next week we'll be continuing our workshop Wednesdays. We'll figure out something to talk about next week, but it won't be Shopify fees. But I do need to go and figure out why why the subscription seemed to fail for for my client, [00:33:30] because I deleted a transaction for the sake of this workshop and now I got to get it back in there.
[00:33:35] Rachel Dauchy: I don't know, but if I could only tell you if I had a nickel for, as how many times that's happened in my sasan yeah. I would be a millionaire. .
[00:33:43] Dan DeLong: There you go. Then we wouldn't be talking because you would you'd be retiring on nickels, .
[00:33:48] Rachel Dauchy: Yeah, exactly. All right, Dan.
[00:33:50] Dan DeLong: All right, everybody. Have a great week and we'll see you next time on the workshop Wednesday. [00:34:00]
