Each transaction should be listed with the date, who made the purchase or sale, and the amount involved. The first step in bookkeeping is figuring out what information you need to track. You need to know what bills are due, how much money you have in cash, and what loans you have outstanding.

Even though Etsy bookkeeping and accounting are different from each other, they are heavily co-dependent. With Synder Accounting software and Etsy integration your deposits and expenses will be categorized automatically. Smart Rules feature is an easy to use if-then blockchain system with no coding at all, that allows you to adjust the solution to the specific needs of your business. It makes storing and categorizing your sales effortless and gives you the possibility to better understand your Etsy accounting reports.

Understand financial statements

A lot of these fees and taxes come as separate transactions, but Synder records them flawlessly. With real-time tracking of your cash flow you’ll have a better understanding of your business’s financial health and Etsy accounting reports. Yes, accounting software is highly useful for Etsy sellers and online artisans. Accounting software can not only help keep track of revenue, costs and taxes, but it can also help with inventory management, invoicing and financial forecasting. By using accounting software, artisans can easily analyze the success of their business and make more informed decisions about how to grow their business. While 82% of the small businesses fail because they lack a proper understanding of the cash flow statements, 77% fail because they do not account for all the expenses while setting prices.

When you look at expenses, you’ll see your advertising, listing fees, merchant fees, transaction fees, subscriptions, and shipping labels (if you use them). On the Balance sheet, bookkeeping for etsy sellers you’ll see the amount that is sitting at Etsy and will eventually be transferred to your bank account. It’s a quick and easy way to get a glance at my current financial picture.

GoDaddy Online Bookkeeping

The first and most important step to good bookkeeping is having a system in place. Whether you use a software program or create your own Excel spreadsheet, make sure that you have a consistent way of recording and tracking your transactions. This will help you stay organized and reduce the amount of time needed to manage your finances.

Some of the Etsy deposits that happened prior to the integration need to be categorized to this new “bank” account and then added. You’ll also see deposits from Etsy that look a little bit different and give the option to match instead of choosing a category. These are the transactions coming through via the integration with Etsy, and QuickBooks is now recognizing them, which allows us to match. After this is completed, you’ll go to QuickBooks Online and click on your banking tab and then on the account where your deposits land. When you go to choose a category for the deposit, you’ll notice that Sync with Etsy has created a new category in QuickBooks called Etsy (name of shop). If you have already done previous months of bookkeeping with my old method of Etsy bookkeeping, I recommend connecting for the next month of bookkeeping you need to do.

Estate and Trust Planning and Tax Preparation

Save yourself hours of accounting admin so you can focus on growing your business. Also, be sure to regularly go through your inventory and compare your Cost of Sales to how much you earn from each product. This way, you can determine if you need to scrap or reinvent any of your items to earn a larger profit. Implement these processes into your routine to make bookkeeping easier.

In addition, our support is not limited just to the software part of it, but we can also provide accounting and payroll assistance. Accurate record-keeping is essential to a successful business yet can also be complicated and time consuming. Cerullo LLC can help you with the organization and day-to-day tasks of bookkeeping so that you can focus on your core business.