The first and most important step in accounting for your Etsy Shop (at least in my humble opinion) is to pick a system that you want to use to keep your financial records in one consistent place.
This system is important because it will hold all of your financial data for your business for years to come.
You can always transition into new accounting systems, but it can be a pain to do this.
Trust me, I have been there and it is NO fun!
In my experience, there are only going to be several choices for your Etsy accounting system, but what is the best bookkeeping software for Etsy?
Glad you are here because I have several of them for you to pick from…
To start your search for the best bookkeeping software for Etsy, you will need to identify the needs of your company.
If it is simple and straightforward and you are just starting out, Microsoft Excel might be enough for you.
If you don’t like the idea of having a hard backup copy or you possibly do not even have excel, then...
How Do I Reconcile My Etsy Deposits?
Recently I was working with an Etsy seller who claimed she was owed $20,000 by Etsy.
That is a lot of money.
She decided she needed some outside help to reconcile her Etsy deposits to her actual bank account because her “Etsy Deposits don’t match actual bank deposits”, she could not reconcile between the two, kind of a big deal I would say.
So, in this blog today I want to clear this up for you so that you can see how Etsy actually deposits the money into your bank account so you can do your Etsy taxes and Etsy bookkeeping a little easier.
Let’s first start with the actual process of how Etsy deposits the money and then we can work through this using a real easy example with visuals and everything…
Here is how it normally works…
You make a sale (yay!)
Let’s say the sale is for $10
Etsy takes it’s cut of 5% per sale or $.50 (not yay!)
That leaves you with $9.50 of money that SHOULD be deposited...
Here’s a quick way to save some money when you file your Etsy Taxes
Did you know that when you integrate Etsy and QuickBooks Self Employed that the orders that come over from Etsy include the sales tax that Etsy collected???
This is not good…
You know why?
Sales tax that you collect is NOT taxable income aka….you should NOT be paying income taxes on sales tax!
It’s a common problem that I see a lot of sellers asking about and even worse, a common problem that a lot of sellers are TOTALLY unaware of…
If you ever wondered about the QuickBooks Self-Employed and Etsy integration, especially regarding sales tax AND wanted to know how to fix it, then you are in the right place!
Now I am hoping at this point that you are aware that Etsy collects the sales tax for you!
But just because Etsy collects the sales tax for you, does NOT mean that you should be overpaying your INCOME tax when you link your Etsy and QuickBooks Self Employed.
So, today I am going to...
It finally happened.
You decided that it was time to start selling on Etsy or your own personal website!
Now, before we can get to celebrating, coming down the other side of the highway are all of the things you really wish you knew about sooner….
That’s right, I am talking about all of the not fun things about running a business, like paying taxes for your Etsy Shop, getting licenses and permits for an Etsy Shop, opening up bank accounts, and deciding if you need to be an LLC for your Etsy Store or not.
Or more simply, how to start an Etsy Shop.
The right way...the "business way"...the REAL way to start an Etsy shop.
In today’s article, I am going to go over some of the most important things that you should do when you open an Etsy Shop, including going over the major question I get…
Do I need to have an LLC to sell on Etsy?
Before we get into all of that though, let’s first go over whether or not you are in fact a business at all.
As an e-commerce business, making the first sale is only half of the battle. Figuring out if you should be an LLC, an S-Corp, or just stick to "Sole Prop" may make your head spin.
Honestly though, it is not as complicated as you think and can actually make or break you come tax time. So get ready for some knowledge.
First things first, let's go over where we are now.
As an e-com entrepreneur, your business structure is really only there to make sure you are legally "free" from your business and if set up the right way, reduce some of those nasty taxes you owe.
How does that happen?
Being legally free from you business. Let's say you just sell under "John Doe", as a single person. You never set up any LLC. And now let's say I get a faulty product and my head blows up. I know unlikely, but hey, things happen. So now I am steaming mad, literally, and I want to sue you for everything you have! Since you never set up an LLC I can take everything you have AS A...