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Daily Summary Sync vs Per Transaction Sync

The key to smooth e-commerce accounting is reliable software that will manage bookkeeping and prepare all necessary data for financial reports. When you choose an application for your business, it is important to find the best functionality that will cover your business needs. For example, some software offers Daily Summary Sync, while others provide Per Transaction Sync.

Both these ways of bookkeeping have advantages, which match the needs of different types of businesses better. In this article, you will find a thorough comparison of Daily Summary Sync and Per Transaction Sync to choose the best option for your business.

Contents:

What Is a Daily Summary Sync?

What Is a Per Transaction Sync?

Inventory Management and Customer Tracking

Reconciliation

Preparation of P&L and Other Reports

Filing Tax Returns

Summary

What Is a Daily Summary Sync?

Daily Summary Sync is an automated way of data entry that groups all the transactions per day. As a result, you get a day-to-day report on your payments called Daily Summary that includes your total income and expenses. A few years ago, Daily Summary Sync was the preferred way of bookkeeping among business owners, which can be explained by several reasons:

  • A low level of payment automation provided by accounting software, so business owners mostly entered payment data manually
  • It took a lot of time to enter all payment details into books, so business owners preferred to fill in only the total sum of payments per day
  • The accounting systems were not tailored to process the vast amount of data, so it took a great deal of time to process each transaction in detail.

Now, accounting software provides hassle-free Per Transaction Synchronization with full payment details, which allows having detailed books in no time. Accounting platforms are tailored to work efficiently with big data volumes and provide payment details, so it gives you freedom of detailed reporting and helps you reduce costs for other apps that help in business analysis. However, some business owners still believe that Daily Summary Sync is much more reliable than Per Transaction Sync and therefore continue to do it this way. So, let’s have a closer look at how Per Transaction Sync works.

What Is a Per Transaction Sync?

Per Transaction Sync is another way of automated bookkeeping that, in comparison with Daily Summary Sync, allows business owners to get a detailed report on each transaction. Earlier, there were only a few applications that allowed a smooth and error-free Per Transaction Synchronisation. So some business owners believe that this type of payment data entry is unreliable and sense-less. However, as mentioned, accounting software today has improved this way of bookkeeping exponentially, to provide business owners with detailed financial reports in just one click.

With Per Transaction Sync, accounting software automatically collects information (product, customer, location, shipping, discount, payment processor fee, and more) for each transaction from a payment processor. Then, they record the full information about the payment in your QuickBooks, Xero, or other accounting platforms and automatically prepare the financial statements. Sounds much better, doesn’t it?

So, let’s dispel any last doubts about Per Transaction Sync and compare it with the more familiar but out-of-date Daily Summary Sync.

Inventory Management and Customer Tracking

Daily Summary Sync

Daily Summary doesn’t provide information on which products were sold. It shows only the total number of sales by the end of the day. So, eCommerce businesses that need to track inventory, will have to pay for additional software that provides inventory management or track inventory manually. Daily Summary can be useful for companies with only one product or service so that they can just acquire the total financial information.

The same thing is with customers, Daily Summary doesn’t collect information about your customers and their locations, so you will have to connect other applications to see which regions are the most profitable and who are your top clients.

Per Transaction Sync

Per Transaction Sync allows inventory management and customer tracking for eCommerce businesses that use accounting automation software. For example, Synder synchronizes in your QuickBooks or Xero full information about each transaction, including product, customer, location, discount, and more.

So, you can track the inventory automatically in your accounting platform and don’t need to overpay for other software. Also, accounting software, such as Synder, will help you prepare a detailed report on the most profitable products and the most loyal customers, so you can optimize your business processes.

Reconciliation

Daily Summary Sync

Reconciliation is a pain for both business owners and accountants. No one wants to find an error in their books and waste hours checking the avalanche of payments. That is why some businesses prefer simplifying bookkeeping. By using Daily Summary Sync, you just need to make sure that the total summaries of the day in your books match your checking account. However, such an approach is not entirely correct and full from an accounting perspective.

Per Transaction Sync

If you use accounting software that automates the bookkeeping process for your business, Per Transaction Sync brings you many additional benefits, such as easy and fast reconciliation. Per Transaction Sync works as well as Daily Summary Sync in terms of reconciliation.

Using accounting automation software, you match transactions in books with your checking account. For example, Synder, which provides Per Transaction Sync, automates the reconciliation process and makes it just a one-click action for business owners. It synchronizes all historical and ongoing transactions in your QuickBooks or Xero with full and detailed data in terms of customers and inventory.

You don’t have to worry about any errors, thanks to precise synchronization, the risks of non-reconciliation of your books with a checking account are at a minimum. Even if some of your transactions don’t match, there are many easy tools in Synder that will identify and correct any errors.

Preparation of P&L and Other Reports

Daily Summary Sync

One of the biggest disadvantages of a Daily Summary Sync is non-detailed payment data. Using Daily Summary Sync, your day-to-day sales are usually entered as a lump-sum that leads to an uninformative and less-detailed Profit & Loss report.

Without thorough reports, it is rather challenging to analyze your sales results and make your business grow. The absence of various details may result in difficulties with decision-making that will bring a negative impact on business development.

Daily Summary Sync only gives general sales and expense data to show the profitability of your business and help you track the monthly sales goals. By comparing the Summaries for different periods you can also monitor the volatility of sales.

Per Transaction Sync

With Per Transaction Sync, you will get a detailed report with multiple tracking categories, classes, and locations from all sales channels. This means you can prepare all financial reports that you need automatically, precisely, and accurately in your accounting platform.

There you will see the number of sales from each sales channel (Shopify, Amazon, eBay, Etsy), the most and least profitable products, full information about the fees of your payment processors, popular shipping locations, and much more. This data is necessary for tax filing and your general business growth.

Also, you can choose the best platforms that drive you more sales and don’t waste money on unprofitable channels that charge fees.

Filing Tax Returns

Daily Summary Sync

In the framework of tax filing, Daily Summary Sync is an equivalent to Excel.

You just get the total number of sales, so the entire tax filing process falls on your shoulders. You will have to count the taxes for your products manually or enlist the professional assistance of an accountant. For some businesses, the sales summary might be enough.

However, there are many cases where you will need full and precise information about each payment. For example, if you want to apply tax deductions to your business, you may need to provide more detailed information about each transaction.

By taking a closer look at every payment you might find out that some transactions may be tax-exempt. Without this data, you could overpay your taxes and never know that you could have cut your expenses on them.

Per Transaction Sync

In terms of tax filing, Per Transaction Sync has many advantages.

Firstly, you automatically get information about fees and taxes in your QuickBooks reports. Secondly, it collects information about shipping for each order, so that you can count taxes more accurately. Thirdly, in comparison with Daily Summary Sync, you can easily apply tax deductions because you have full transaction data.

Moreover, there is an additional benefit for UK-based companies! They can file their tax returns directly through QuickBooks. So, the whole tax filing process comes down to a quick review of the reports.

Summary

FactorsDaily Summary SyncPer Transaction Sync
Inventory Management+
Customer Tracking+
Reconciliation++
Financial statements+/-+
Tax filing+/-+

To sum up, accounting automation significantly optimizes the whole bookkeeping process. eCommerce business owners or bookkeepers no longer need to enter payment data manually.

Accounting software, such as Synder, allows automatic synchronizing of all payment details into your QuickBooks or Xero. When you use accounting software to manage bookkeeping, there is no need to use Daily Summary Sync and get fewer payment details. Some companies just don’t use the full potential of their QuickBooks, Xero, or other accounting software, which is why they overpay for extra applications and still have to manage some business processes manually. Get all the benefits from your accounting platform by using Per Transaction Sync.

Book a free demo with Synder to get more information on how Per Transaction Sync may help your business accounting!


Anastasiya Liakh

Anastasiya Liakh

Anastasiya is a specialist in Digital Marketing with extensive experience in Fashion and Law business industries. She has a higher degree in International Private Law, specializing in Corporation Law and Intellectual Property. In her spare time, Anastasiya writes exclusive columns for print media, runs her own online magazine, and practices stock trading. Her field of interests includes finance management, e-commerce, and business digitalization.

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