Top Three Essential Accounting Tools for Savvy Etsy Sellers

If you’re one of the 1,800,000 sellers on Etsy, you probably think a lot about how to stand out, what new products to offer, and different ways to market your items. But one aspect that often gets overlooked is the bookkeeping side of running a business. Luckily, several accounting tools are designed specifically for Etsy sellers, making managing your finances much easier.

Wave is a free accounting software that offers a lot of features, solid customer support, and direct Etsy integration. All your Etsy sales will be automatically added to the software. Wave also connects with PayPal and can detect duplicate transactions. Besides managing sales, you can send invoices, save contact information, and separate personal and business expenses (a must if you use one bank account for both purposes to avoid an IRS audit). You can also run reports for sales tax and accounts payable to see who hasn’t paid their invoices yet. The software is user-friendly, provides full accounting capabilities like bank reconciliation, and it’s free. Wave can also grow with your business by adding employees and payroll in the future.

QuickBooks Self-Employed isn’t a full accounting solution but is excellent for expense tracking, light bookkeeping, and lots of tax support. It’s particularly useful for single users running a small business. With a recent Etsy integration, it’s an excellent choice for managing finances and simplifying tax season. It can even help you accept credit card payments if you sell outside of Etsy. The software imports your Etsy sales directly, categorizes expenses automatically, and lets you set bank rules for organizing transactions. You can also separate personal and business expenses and track various deductions like mileage and home office. Though the reports are limited, you can still see your overall profit and loss. The standout feature of QuickBooks Self-Employed is its tax support, including Schedule C, estimated quarterly taxes, and integration with TurboTax for filing. The software costs $10 a month or $17 a month with TurboTax integration.

GoDaddy Online Bookkeeping offers basic bookkeeping, robust tax support, and a full Etsy integration. Like Wave and QuickBooks Self-Employed, it will automatically import all of your Etsy sales. Of all the accounting options for Etsy users, GoDaddy provides the best reporting. You can run reports to see your profit and loss, sales tax, top customers, top items sold, and invoice statuses. You can also categorize personal and business expenses and access tax support, including Schedule C, 1040, and estimated quarterly taxes. GoDaddy offers two plans compatible with Etsy: $9.99 a month or $14.99 a month.