Here are a few indications it might be time for you to hire an accountant. Although an Etsy shop owner is not legally bound to keep an accountant if doing it yourself looks like too much on your plate, you can always consider hiring one to help you out. NetSuite offers a subscription model with an annual license fee for the core platform, optional modules, users, and a one-time setup trial balance fee.

Want better bookkeeping?

Between Etsy fees, material costs, and shipping expenses, it can feel like money is constantly moving in and out of your account. If you’re an avid Etsy seller, you’ve probably already heard of Xero, Quickbooks and Freshbooks – they are three of the most popular accounting software programs used by the Etsy community. This spreadsheet is ideal for newer Etsy sellers or those who have less than 50 vendor purchases for their shop each month.

Accounting Services

By keeping your records organized, you can easily monitor your sales, expenses, and profits. Using accounting software ensures that all these factors are included in your financial reports, so you know your real profitability. This is especially important when deciding on pricing strategies or running promotional campaigns to ensure that you’re not selling at a loss. Tools like Link My Books automatically sync Etsy sales, fees, and taxes with accounting platforms like Xero and QuickBooks, reducing manual bookkeeping tasks and minimizing errors. At least once a month, compare your business transactions with your bank statements to ensure accuracy.

How To Transition To Sync With Etsy For Bookkeeping

Etsy charges a $0.20 listing fee, a 5% transaction fee on the sale price, and a payment processing fee if Etsy Payments is used. These costs are crucial to consider in your pricing strategy to ensure profitability. Awareness of these fees helps in financial planning and understanding the net income from your sales.

Accurate Ecommerce Accounting

• QuickBooks – It is one of the most favorable accounting software for small businesses and will be most suited for Etsy Businesses.
• Both are essential, but bookkeeping is the foundation that keeps an Etsy business running smoothly.
• Maintain accurate records to catch and handle errors like duplicates and overstated expenses early on.
• While Xero is an excellent tool for larger shops, its plans start cheap and can become costly with additional features.
• As an Etsy seller, you must understand that bookkeeping and accounting work hand in hand.
• So, if you sold a shirt that will take 5 days to reach the buyer, but the buyer chooses to pay in advance, you can record it under cash-based accounting.

Therefore, you are advised to consider the legal requirements when accounting for your Etsy shop. Tax Deductions—Necessary business expenses such as vehicles, shipping, cell phones, internet, and advertising are allowed as deductions for business owners. You might want to claim these deductions to save tax as an eCommerce business owner. Accounting for these expenses can help you claim the available deductions and make significant tax savings. While you might think you can manage the accounting for Etsy sellers just like a general business, it needs to be validated.

Easy data in, easy data out

Many Etsy sellers start by manually entering their sales into QuickBooks, thinking it will be a simple process. However, as sales volume grows, manual bookkeeping becomes time-consuming, error-prone, and difficult to manage. Here’s why manually recording Etsy sales Coffee Shop Accounting in QuickBooks is not the best approach. Link My Books integrates directly with QuickBooks, syncing your Etsy sales, refunds, and fees.

The magic happens when our intuitive software and real, human support come together. Additionally, with automation tools like Link My Books, you can generate real-time reports, enabling more informed planning and adjustments. This connection enables Webgility to pull order details, customer information, and inventory data directly from your Etsy shop. To get started, sign up for a Webgility account and bookkeeping for etsy sellers select Etsy as your sales channel. Once you’ve logged in, authorize Webgility to access your Etsy store data.