If you run a Shopify store and use Xero (or QuickBooks), you already know the pain: Shopify payouts don’t neatly match daily sales, fees can show up in multiple places, refunds happen days later, and payment gateways add another layer of complexity. This could cause a messy accounting file and hours of manual reconciliation.

This is where A2X comes in. In this A2X review, we’ll walk through what A2X does, who it’s best for and why we recommend it to our ecommerce accounting and tax clients at JD Scott + Co. We’ll also share how we recommend setting it up, because yes, the setup matters if you want to make your life easier. Finally, we will share some common traps when integrating.

What is A2X?

A2X is an accounting automation tool designed to translate ecommerce sales data into clean accounting entries. It connects to platforms like Shopify, Amazon, eBay, and payment processors, then creates accurate summaries that match real-world payouts.
Instead of dumping dozens (or thousands) of transactions into Xero, A2X creates balanced invoices or journal entries that reflect:

  • Sales (including tax)
  • Discounts
  • Shipping income
  • Refunds
  • Gateway fees (Shopify Payments, PayPal, etc.)
  • Chargebacks (where applicable)
  • Gift cards (if configured)
  • And most importantly: the net payout that hits the bank

In summary, A2X is built to solve the classic ecommerce accounting problem: your bank deposit doesn’t equal your sales, and reconciling it manually is annoying and time consuming.

Blog What Is A2x

Why We Recommend A2X for Shopify + Xero for our Clients

A2X plays a huge role in getting cost of goods sold (COGS) right for ecommerce brands — especially when Shopify is your primary sales channel. Without a proper connector, Shopify data tends to create messy accounting outcomes that make COGS unreliable and month-end far more painful than it needs to be.

When Shopify is left “as is,” most businesses end up doing one of the following:

  • Posting Shopify payouts as a single sales number (inaccurate)

  • Pushing individual orders into Xero (way too many transactions)

  • Manually creating summaries in spreadsheets (error-prone)

  • Ignoring proper reconciliation until BAS time (stressful)

None of these approaches give you clean inputs for COGS or inventory reporting — which is why so many ecommerce brands struggle to understand true profitability. This is where A2X changes the game, particularly when paired with a solid understanding of inventory accounting for ecommerce (we break this down in detail in our article).

A2X creates a far cleaner workflow:

  • Every Shopify payout matches to a tidy, accurate summary in Xero

  • Fees are recorded correctly and consistently

  • Refunds and taxes don’t get missed

  • Reconciliation becomes fast — often minutes instead of hours

At JD Scott + Co, we recommend A2X for our ecommerce clients because it saves time and improves the accuracy of your bookkeeping. When your sales data is clean and reconciled properly, your COGS and inventory figures finally start telling the truth.

If you’re running weekly or monthly bookkeeping for ecommerce brands, A2X is one of those tools that quickly becomes non-negotiable once you’ve used it properly.

A2X Key Features

1. Automatic Payout Matching

A2X breaks Shopify activity into settlements (payouts) and ensures the accounting entry ties out to the exact deposit in your bank feed. This is critical because reconciliation is where ecommerce bookkeeping can be smooth and automatic, or a nightmare.

2. Accurate Fee Capture

Shopify fees, payment processing fees, and gateway charges can be configured to land in the right accounts. This gives you better gross margin reporting, profit tracking, tax reporting, and financial clarity. Without this, you might be overstating revenue and understating expenses.

3. Multi-Currency Support

If your store sells internationally, A2X helps manage foreign currency settlements (especially important if your payout currency differs from your store currency). This isn’t always straightforward inside Xero alone, so it’s a major plus.

4. Tax Mapping and Control

A2X lets you map Shopify tax settings to your Xero tax rates and ensure tax lines appear correctly in your reports. This is especially helpful when your store has mixed tax regions, tax-inclusive pricing, different shipping tax rules, or product exemptions. For example, products shipped outside Australia are not subject to GST, whereas internally, they are and need to be included in your BAS.

5. Clearing Accounts for Clean Reconciliation

A2X typically works using a Shopify clearing account, which allows you to see what Shopify “owes you” at any time and reconcile payout deposits cleanly.

Pros and Cons (Honest A2X Review)

Pros

  • Huge time saver for bookkeeping and monthly-end accounting
  • Reconciliation becomes straightforward
  • Great audit trail and reporting
  • Handles fees, refunds, and taxes properly
  • Scales easily as transaction volume increases, you focus on growing revenue
  • Works well with Shopify + Xero specifically

Cons

  • Setup can be confusing if you don’t understand clearing accounts
  • Tax mapping requires care (especially multi-region stores)
  • If Shopify settings are messy, A2X will reflect that mess
  • Monthly cost may feel high for very small stores
  • Some special cases (gift cards, partial refunds) need correct mapping or accountant support
A2X FAQ's
  • A2X is ideal if you are:

    • Doing monthly bookkeeping for a Shopify brand
    • Processing more than a handful of orders per day
    • Using Xero and want clean reconciliation
    • Managing multiple gateways (Shopify Payments + PayPal)
    • Needing accurate tax and fee reporting
    • Working with an accountant/bookkeeper who values proper controls

    If you only have a few sales a month, you could do it manually. But once volume increases, A2X quickly becomes worth it.

Most stores can connect A2X to Shopify and Xero in under an hour. Setup involves linking accounts, choosing payout and clearing accounts, and reviewing tax mappings. Once configured, reconciliation runs automatically in the background.

For most ecommerce businesses, yes. A2X replaces hours of manual data entry each month, reduces reconciliation errors, and improves financial accuracy. The time savings alone often outweigh the subscription cost, especially as order volume grows.

A2X automatically separates refunds, payment gateway fees, and chargebacks into the correct accounts in Xero. This ensures payouts reconcile cleanly and financial reports accurately reflect net revenue.