How does Finaloop work?

Finaloop Accounting, Finaloop's real-time bookkeeping and accounting service, connects to your sales channels, payment processors, banks and cards, categorizes and reconciles your transactions, and has a team of ecommerce accounting experts keep your books accurate. The result is a Profit & Loss statement (P&L), Balance Sheet and Cash Flow report you can use to run your business and file your taxes.

Looking for a quick overview of how Finaloop works? Here are the basics on who we are and what we do.

Here is what you need to know about the team working on your books:

Does anything else really matter?

We use a combination of technology and ecommerce experts (accountants, bookkeepers and tax experts) to reduce the undeniable pain of dealing with ecommerce bookkeeping.

If you have any questions at all, send us an email at [email protected] or chat with us. You get unlimited email support from one of the awesome and knowledgeable experts on our team (yes, a real human!).

We want you to have all the data you need to run your business in real time.

No matter how you have dealt with your books until now, whether it's using a bookkeeper in QuickBooks or Xero, using NetSuite, or even DIY in Excel, we're here to help you get your books up and running.

Our team of experts creates accurate, real-time financials based on ecommerce best practices. This gives you consistent financials all year, so you can compare your growth month over month, be ready for an easy tax filing at year-end, and have reliable data to make better decisions every day.

We support both cash basis and accrual basis books, so you have the flexibility you need for your business. To learn which one fits you, read Does Finaloop use accrual or cash basis accounting?

We connect to your sales channels and payment gateways, pull in your data in real time, and automatically map it to your P&L and Balance Sheet based on tax rules and best accounting practices.

We sync with Shopify, Amazon, TikTok Shop, Walmart, eBay, Etsy, Stripe, Shop Pay, PayPal and Afterpay, to name a few.

We have a 3-way reconciliation process: we sync your sales channel data to your payment gateway data, and then we sync those to the actual payout in your bank account. The result is very granular breakdowns and real-time data that's reconciled with your sources of truth. When a payout or transfer doesn't match, it shows up in the Anomaly Detector for review.

Here is what you will see in your financials for each sales channel (each broken down by channel):

In your Balance Sheet, you will also see undeposited funds (UDF), the balance left in your sales channel or payment gateway that hasn't been deposited into your bank account yet. This gives you a better idea of expected cash flow.

Just so you know, we have a read-only integration, so we will never make any changes to your accounts.

We connect to your banks, credit cards and digital wallets (like PayPal) and bring all of your transactions into your books in real time.

We use machine-learning technology to categorize your transactions automatically, and if we can't recognize something, we'll ask you for help. To see the transactions waiting for you, open Transactions and select the Waiting for your input checkbox.

If you want to recategorize a transaction, you can do it all from Transactions. Click the transaction's category to open the Categorize transaction window, then search for the correct category, or click Ask AI for a suggestion. In the same window you can turn on Mark as personal so the transaction doesn't impact your business results. To split a transaction into several categories, or spread it over a period of time, click More actions. Spreading is available on accrual basis books.

① Mark as personal, ② Category and Ask AI, ③ More actions.

For step-by-step help, read Categorizing & reviewing transactions.

When we need something only you can give us, like a missing app connection or loan details, we'll ask in My missions, or in Getting started during your free trial. Read Understanding my missions to learn what each request means.

Your first P&L and Cash Flow reports are ready about 2 days after you connect your banks and apps, and our accountants email you within 48 hours when they're ready. You'll find them in the Report center. Your P&L includes all of your business data, such as:

No matter what accounting system you used before Finaloop, and whether or not you already have a prepared balance sheet, we can help you get a handle on all of the assets, liabilities and equity of your company.

After you subscribe, we'll ask you for some further information to build an up-to-date and accurate Balance Sheet for your business. You'll see this as the Let's build my Balance Sheet mission in My missions. Once you've provided everything we ask for, the process takes 4 to 6 weeks.

Finaloop gives you real-time cash flow reports, so you can make sure you always have enough cash to run your business. Having this data at your fingertips makes planning and cash flow management much easier. Open the Cash Flow report anytime from the Report center.

Finaloop uses a lot of advanced technology to streamline and automate your finances and give you real-time numbers. But our real superpower is our amazing team of experts.

Get support from CPAs, tax specialists, even ex-investment bankers, all with vast expertise from PwC, EY, Goldman Sachs and other big financial powerhouses. Our experts work exclusively with ecommerce, DTC (direct-to-consumer) and multichannel brands, so we're super familiar with your business and your needs. If you need anything, just let us know. We are here to help!

Email us at [email protected] and our team will get back to you.