It’s also important to keep backup copies of all your records in case something goes wrong with the original files. Bench works with hundreds of ecommerce sellers, and we know ecommerce bookkeeping and accounting inside and out. There’s always the option of doing it completely on your own, but if you’ve never excelled at Excel spreadsheets (pun intended!), that can feel like even more of a risk. Depending on your income, product, and sales platform, you may be expected to pay sales tax quarterly or even monthly.
The success of your Etsy shop is significantly influenced by your bookkeeping. Regular account reconciliation leads you to find mistakes, identify odd transactions, and ensure that money is handled appropriately. Regularly doing this will enable you to quickly identify any inconsistencies or problems, allowing you to solve them before they worsen. Articles on this website are for informational purposes only and do not constitute accounting, tax, or legal advice. Please consult your accountant, lawyer, or tax professional for guidance directly related to your unique situation. While Sync with Etsy is a great option for many shop owners, there are a few limitations.
QuickBooks
This could be as simple as a spreadsheet, or you could use accounting software. Make sure to record both incomes and expenses, noting the date and a description of each transaction. Identify the category of each transaction; for instance, supplies, expenses, income, taxes, and fees.
This is a further breakdown of your order report and gives the the details of individual products within each order. This is essential for VAT reporting but can also bookkeeping for etsy be helpful if you want to see more detail on your shops performance at a product level. The main report to use for your bookkeeping is your Etsy Payment Account.
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Although “bookkeeping” and “accounting” are frequently used interchangeably, they actually refer to two different functions. Bookkeeping is the recording of a company’s financial transactions, while accounting analyzes and interprets those transactions. Since keeping track of all your transactions manually takes time and effort, there are DIY accounting software programs that can automate many of these tasks.