I'm a creative who literally wanted to cry when I was faced with trying to navigate Etsy and balance my books for the first time. THIS VIDEO SAVED ME. For the first time ever I was able to balance/reconcile my account with your help. THANK YOU SO MUCH SARAH!!!
It always frustrated the bejesus out of me why the Etsy reports failed to be 100% accurate or included all the info we need. For a site with millions (?) of sellers, why?? Thank you, Sarah, for the huge lightbulb!
In 2022 Etsy made changes to the Finances Summary. This is the new way to calculate your monthly journal entry: ruclips.net/video/qg4V3KJB6_w/видео.html Do this instead!
Thank you so much for this... I'm new to QBO, and have been trying to do bookkeeping for both my Etsy and eBay stores. Your video is the best that I've found on this!
Wow, thank you for making this video and series! My bookkeeping was not balancing out and I didn't know why. This is a lifesaver! I'm starting the playlist from video one starting tomorrow and hoping to get all of my bookkeeping for 2020 resolved by the end of the week! Thank you thank you!
@@SmallBusinessSarah I just sent you the one time yearly fee option. This series really helped me more than I can begin to explain. Dealing with my bookkeeping and taxes has been a constant struggle with my business, a past I wont even begin to get into right now, and now that I've taken over my bookkeeping personally, I feel like I'm getting a hold on it with your help!
two words - Rock. Star! I was dreading having to put the Etsy numbers in, and you've saved me hours (and hair that I would have been pulling out trying to figure this stuff out!!!) Thank you so much!!
Wow. Thank you SO much. This was incredibly helpful. I wasn't sure if I should use an Etsy app integration or go manual and your video not only helped me decide which route to take but also helped me get it done! I was nervous but your step-by-step instructions where on point! Can't thank you enough!
Sarah, thank you so much for these videos. I used your affiliate link to buy QB. There is no way a non-accounting person would ever be able to figure this all out! I am going to recommend your website on Reddit when people complain about their Etsy taxes. Hope that helps you out.
Thanks so much! I really appreciate it. The accounting degree certainly helps to problem solve bookkeeping issues like this! Glad I can pass along a somewhat easy solution to shop owners without an accounting degree!
Thank you for the app!! I’ve been using your journal entry method since Etsy started lumping everything together, but I always dread and put it off. Now all I need to do is upload the csvs. Amazing, and well worth the suggested monthly fee!
Sarah, firstly, thank you times a million. Secondly, I can't believe Etsy is pushing it's sellers to sign up for Quickbooks Self- Employed when it isn't even set up to meet our needs. They could SO easily fix the reporting and create breakdowns like your app does. My only conclusion is that they are getting major kickbacks from trying to sell Quickbooks SE to their sellers. So very disappointing!
If your client is an Etsy seller, there have actually been several changes since this video was created. I would take a look at the following video which outlines the best options for Etsy bookkeeping in 2022: ruclips.net/video/eG_3p5yP4EQ/видео.html
brilliant! I was about to close my Etsy shop till I saw the app at the end. My Etsy sales don't make all this book keeping worth it. Will hang out till the holidays then reassess.
Just wanted to let you know that when you do start needing more involved bookkeeping with QuickBooks Online, earlier this year QB came out with an integration called Sync with Etsy, and it's free! I still use my old method for clients with more than one shop, but check out Sync with Etsy when the time comes: ruclips.net/video/dDQUS3b9bMo/видео.html
Just found this updated video. I can't believe how much i've learned so far. My question is: should I create different Etsy Banks in QB if I have more than one Etsy store? So Etsy Bank for Store 1 and Etsy Bank for Store 2 or just manually combine and enter those numbers into one Etsy Bank on QB?
I responded on the other video too, but I'll respond here also for the benefit of others! You can choose either option. Generally, it's easier to just have one Etsy Bank, that way when you are categorizing your transactions, all the deposits just go to Etsy Bank, and QB remembers that. Regardless of if you choose to use one Etsy Bank or two, I always separate my revenue and expenses by shop. For Example Etsy Shop ABC Revenue and underneath it all the income accounts for that shop and then Etsy Shop XYZ Revenue and underneath it, all the income accounts for that shop. Same for expenses. That way you'll know how each shop is performing.
Thanks so much @Sarah! This is a life saviour! Have been waiting for this vid since your comment in your prev. video! And really appreciate you sharing your BRILLIANT app! It's super handy and saves so much time! Will try it out and support! Thanks again you're the best. What if we're not in US (in AU) - Which sales tax state do we select? I don't see an option for None?
First of all your channel is great! I have recommended it to a few friends! I live in the UK and things are slightly different over here, is there any advice you can offer? Would your current video work with my book keeping? thanks in advanced :)
Hi Sam, the advice I give international sellers is to select a state in which they had no sales that month. Usually Alabama is a safe choice. Then U.S. sales tax won't affect your entry. Other than that, I haven't had a chance to test international CSV files. I'd be happy to take a look if you would like. Shoot me an email at Sarah@SmallBusinessSarah.com
Thank so much for making this video - so helpful! One question - we sell several different types of products on Etsy and need to track what sells, what doesn't, etc. When you setup your journal entry, can you break the sales out by different products? If so, is that sub-sales accounts?
Yes, you can create sub-accounts of Etsy sales. I would just caution you that the more granular you make your bookkeeping, the harder it is to keep up with. Sometimes it's better to track things like that separately, not in your bookkeeping records.
Thank you for these great videos, they have been so helpful in my Etsy bookkeeping. Question: How would I record a month where I only have marketing fees and no income? Thank you!
Have you seen my updated video? ruclips.net/video/qg4V3KJB6_w/видео.html The entry is pretty much the same expect you would have a debit for marketing expenses and your etsy bank amount would be a credit instead of a debit.
@@SmallBusinessSarah Thank you! I figured it out shortly after posting the comment. I am done with Etsy and now moving onto Shopify. Thank you so much for the videos and chart of account csv!!!
@@maddogfabrics2021 you certainly can formally reconcile it each month. At a minimum just make sure you compare the ending balance per Etsy to the ending balance in the Etsy bank register in QB.
Thank you so much for providing this information, it helped streamline the entering into the Journal. I do however have a question. I had a credit card charge tacked onto the very last day of the March 2022 statement because I shipped a package that weighed more than I originally had down so I had to pay the fee. Working on the journal for April 2022, I was not sure how to report that charge - Etsy shipping expense or under something else? Can you provide a little insight with credit card charges made and how to report it in the journal? I would greatly appreciate it, thank you!
Hi Lisa, from what you are describing, I assume your Etsy payment account went negative and then Etsy charged your credit card to bring you back up to zero? In that instances, the charge to your credit card from Etsy should also be categorized to Etsy Bank. You will automatically capture the full amount of the shipping charge in your monthly journal entries. Hope that helps! Sorry your question got buried in my list of open questions!
I checked the calculator in your website which is really cool. It makes the life easier it gives an exact entry to create a journal. But it seems it is not working for the year 2021. It works only for the year 2020. Can you please check and correct it. Also if you can do a similar series with Etsy bookkeeping with Wave Accounting . That would be really cool and helpful to many.
Etsy changed their wording on the csv file for shipping, that's why it's no longer being picked up. I am in the process of hiring a developer to fix this. In the meantime check out my new video on the Sync with Etsy integration.
Thank you so much for your videos and instructions! They have been so helpful! Now I am wondering how to tie in inventory with those etsy sales. How can I track what is actually being sold on etsy and have those items come out of my inventory in quickbooks? Do you have any other videos that address this?
Hi Rebecca, most product sellers don't need to track inventory throughout the year in their bookkeeping records. It's far too time-consuming for most handmade sellers, and QB is not really set-up to accommodate inventory tracking for Etsy sellers. In addition, most small business owners are on the cash basis of accounting, and the cash basis of accounting does not record inventory. Instead, all raw material purchases can be categorized as Cost of Goods Sold. For tax purposes, at the end of the year, you will do an end of year inventory count for the calculation on page 2 of the Schedule C. That's it. Recording everything to COGS keeps the bookkeeping simple, straightforward, and easy.
All raw materials purchased for your products can be categorized straight to Cost of Goods Sold, this is the easiest and fastest method. Most accounting programs are not really designed to track the COGS per item sold for handmade products.
Sarah Korhnak I agree. Thats what I have done in past years but now that I produce larger batches, unsold inventory carries over into the next year. Would adding a line for COGS in the journal entry on a monthly basis make a mess of the reconciliation? With Amazon sales, I have successfully integrated Webgility into QuickBooks but I have heard horror stories with Webgility/Etsy integration. Thanks again for your great content!
@@HuckVenture Adding COGS to the journal entry would mess it up. For tax purposes I am sure you are doing an end of year inventory count. You could also adjust your bookkeeping at year end to account for inventory on hand.
Hi Sarah, thank you so much for these series of videos! They are amazing, as well as your app! Quick question. I have 3 Etsy Shops. I have already balanced my first shop. Would I just download the chart of accounts 2 more times, and label them " Etsy Bank 2" " Etsy Bank 3" and follow the same process?
Yes. I set-up separate income and expense accounts for each Etsy shop, but I categorize all deposits to the same Etsy Bank. That is the best way I have found. Did you see the video on the new Sync with Etsy? It would only work for one shop, but it is a great integration, and free! ruclips.net/video/dDQUS3b9bMo/видео.html
Thank you so much for this information! SO incredibly helpful on my journey to learning e-commerce for bookkeeping clients. Couple of quick questions. 1 - would you do the same kind of process for Ebay and for Amazon, if a client did not want to use a third party app integration. (Which I'm not ready for myself!) 2 - I'm a bookkeeper in Canada, so to better understand marketplace facilitator taxes for the US, and how you calculated your Etsy Journal.. My question is this...you showed that you were calculating a certain amount of tax for your home state PA, but nothing for other states. Is that because, if your an online business in the US in a particular state, you have to be registered and remitting taxes no mater what the thresholds are for your home state sales. ANd were there $0 taxes in other states on your journal because thresholds are not met yet, or because thats the way the report is presented to you in Etsy for states with marketplace facilitator laws?
Hi Patti. EBay I handle slightly differently because it is much more straightforward. Deposits go to PayPal and these can be categorized as eBay income. Fees are charged monthly, and can be directly categorized to EBay fees. Here is my Amazon video: ruclips.net/video/nx5mjPY3uCI/видео.html . I haven't worked with a Canadian seller, but if on my app you select a state where they had no sales, Alabama lets say, the app should correctly spit out zero for the sales tax amount. What I don't know is if you need to add a tax amount to Canadian sales. You are right that I only have to register in my state of PA for sales tax unless I meet certain high thresholds in other states. But, those same states are now requiring marketplace facilitators (Etsy) to collect and remit sales tax for every sale. This is true of most states now. When Etsy collects and remits these taxes, it should report 0 in the sales tax column. However, I have noticed in the past that Etsy will sometimes put a tax amount in that column in error. It's getting better, but that's why I only worry about amounts in the sales tax column for PA.
Your tutorials are extemely helpful! I have a question about what to do with the Shipping Discount. There are periods of time where I did not charge shipping and Etsy has this broken out on the Sold Orders report as "Shipping Discount". Do I need to record this in my JE somewhere?
Sarah, you're an answer to prayer. In one year I went from Quicken to QB MAC desktop to QB Simple Start and your videos are like a light bulb in my head lighting up! I'm watching all of them and reading the comments too. Thank you! I'm doing this manually because I'm using Shopify. Do I manually deduct my Shopify, AmazonPay and PayPal fees? Or does the PayPal Bank App take care of the PayPal fees?
Additionally, how did you calculate your Shipping Income and Shipping Debits? My Shopify Fin report simply includes shipping, so should I assume that my shipping income is included in my gross sales number? I also had a customer use a discount, so should I use my net sales instead of my gross sales when I calculate it all out? I think I'm getting it....think is the key word! Thanks Sarah
Hi Elicia, for Shopify your entry will be very similar to Etsy. From your comment below it sounds like you found your Financial Summary report in Shopify. That's the one I use. Assuming all deposits went to "Shopify Bank" or "Shopify Receivable" then I Credit Gross Sales, Debit Discounts, Debit Refunds, Credit Shipping Income, and Credit Sales Tax collected. Your PayPal fees will be automatically deducted by PayPal. But you will need to Debit your Shopify transaction fee which can be found on your Payouts page. I can't remember off the top of my head how the AmazonPay fee is handled. If each deposit is net the fee, or if the fee comes out of your checking account on a monthly basis. If it's the former, then find that fee and add it as a Debit in your entry. The balancing number is to Shopify Bank. I do plan to make a video about this soon, I'm just swamped this time of year! Good luck!
Your video is really helpful! What do you put your orders under, or do you just do the journal entry for those? For example, I use Sales Receipts and have those imported over from Webgility into Undeposited Funds but I am have a hard time tying everything together...
I recently worked with a client using Webgility to bring over her orders as sales receipts. In her case, Webgility was incorrectly recording them as negative undeposited funds. We could not find an easy way to work with Webgility and get accurate results quickly. We scrapped Webgility, saved her $50 a month, and she is doing things exactly as I outline in the video. No individual orders to worry about on the QB side.
Hi Sarah, I love your "Bank" or "clearing account" method which allows us to see the month end balance that (Shopify/Etsy/Amazon) still owes us and I love that the monthly Journal entries to breakout the different sales components so our P&L will match to Shopify sales summary. However, do you think there is a need to do it on monthly basis, is not it easier to do it once at year end and pass one journal entry? it may take more time than one month work but I think it will be far less effort than doing it 12 times a year, what is your view on yearly recording? As for Canadian sellers like me, do you recommend using the month end exchange rate to translate USD sales into CAD when we post the monthly journal entry to QBO? or is there is monthly average rate that can be used instead? Appreciate your advice and view! Thank you !
I have posted year end entries when I need to do a big clean-up for a whole year. However, I would recommend monthly entries just so you have a good idea of your monthly financial progress each month. The point of bookkeeping is to allow your financial reports to inform your business decisions. When I have worked with U.S./Canadian exchange rates in the past, I've used the Payouts section of the Amazon reports and compared it to the Payouts in the bank statement, to come up with the exchange rate for that month. Then applied that rate to the revenues & expenses.
So incredibly helpful thank you! I am not an accountant so please bear with me. How do you take into account the cost of the products sold during the month, shouldn't they be incorporated into the profit in loss statement so you can keep track of inventory sold?
Hello Sarah! Thank you so much for your hard work! I have a quick question that I can't figure out. I've looked everywhere and I am hoping you can help. You noted that your shipping postage is $50.03. However you put $82.09 in shipping income. How did you get this number? I know the shipping postage is $50.03 is what Etsy charges us.... but the additional income for shipping.... where do I get that number? Thank you in advance. I love your videos!!! :)
Hi! Shipping Income comes from the Etsy Orders CSV file. There is a column for shipping on that spreadsheet, which is the amount of money that you charged customers for shipping.
Thank you so much, this is the first time that I have even come close to understanding my Etsy accounts (and Quickbooks, for that matter)!! I would love to try out your Etsy Entry App, but I'm in the UK - is there any way of entering 'none' in the Sales Tax State field?
Hi Liz, if you select a state that you rarely make a sale to, for example, Alabama, then the sales tax payable amount will always show as zero, and won't mess up the rest of the calculations. I'm not familiar with how sales tax works in the UK, so you may need to manually break out any sales tax you collected in the UK. If you need to break that out, credit sales tax payable and reduce sales by the same amount. I hope that helps!
Thank you for the step by step. I've been generating my own Excel and it works really well. It was nice to have a "yard stick" by which to measure my calculations. Quick question: What is the Shipping Cost Credit in your app and how is it calculated?
Hi Sarah , thank you so much for all the videos. I’m taking over my books from Jan and have viewed your videos numerous times. My question is... I have a couple Etsy stores and a Shopify. For Etsy I’m only using one Etsy bank but have broken down each store in my chart of accounts. Is that wrong or just fine? Also, doing a journal entry, do I do one for each store or just each selling platform.. for instance should I add up my numbers for each Etsy store and do one journal entry for Etsy? One journal entry for Shopify or is it ok to do journal entries for each store?
Hi Jode, when I do bookeeping for a company with multiple Etsy shops I only use one Etsy Bank account, but then use separate revenue and expense accounts for each shop, just like you are doing. For my journal entries, I tend to do one journal entry for all my Etsy shops. For example, I'll list the accounts and amounts for shop A, then move on to the accounts and amounts for shop B, all in the same entry. However, you could do a separate entry for each shop if you wanted. It won't matter either way, as long as you capture all the information somehow, you'll be fine. I do tend to do a separate journal entry for Shopify, and not mix it with my Etsy entry. I handle Shopify in a very similar way as Etsy. I did recently post a Shopify video if you haven't seen that yet: ruclips.net/video/DPFV6WVrfnA/видео.html
Hey Sarah! This looks amazing and I totally appreciate your videos. However, I have a question that I haven't heard mentioned in your videos. What is the actual function of the Etsy Bank? Is it simply for categorization or does the money need to be "transfered" from your receiving bank account to this new Etsy Bank category? [ Please Note: I've taken over my accounting from a previous accountant who never connected the bank account so I still input all of my transactions manually monthly according to my bank statements. I have one bank account for my business and all Etsy deposits go in there. I also have a Business Enterprise Quickbooks Account, so I'm trying to use your same concepts inside of this other software version.] I've added all your Categories including Etsy Bank. When I add in Etsy deposit entries to my actual Bank Account register I put the category as Etsy Bank. Then when I do my General Journal entry for all the info from the Etsy Entry App, the Etsy Bank category then shows a listing for the General Journal total (so that's the same number shown twice in this account), and also still shows the original deposit from Etsy in my actual Bank Account. So when I look at the Chart of Accounts the Etsy Bank total is showing double the amount that I received and my actual Bank Account still accounts for the original deposit. I guess my question is - is Quickbooks actually registering this as double or triple the income or is it just categorizing the information differently in that bucket and still only seeing the original funds (since this is actually not a bank account and there is no actual money flowing through there)? I'm wondering if I misunderstand how the Etsy Bank was supposed to function, or if this some glitch that I happened because I'm entering it manually and your connected accounts already recognize the funds as the same funds. Sorry I realize there are a zillion variables here, but I think just a general conceptual understanding of how that Etsy Bank functions in relation to the deposits from the actual Bank Account would help me get my mind around it. Any help would be great! Thanks so much!
Hi Monique, the Etsy Bank account is just a Holding Account or a Clearing Account. We are simply categorizing all the deposits to one place, so we can parse them out to their respective revenue and expense accounts at month end. From your comment, I'm not sure what you meant by this, " the Etsy Bank category then shows a listing for the General Journal total". But it does sound like something is going wrong if the Etsy Bank balance is showing as double. Also I would recommend connecting your accounts! You will save yourself so much time in manual entry.
@@SmallBusinessSarah Thanks so much for the clarity! I definitely thought it was a holding account but when I saw a total for it in my Chart of Accounts view I was suddenly worried that it would be seen as more revenue for tax time. I do think that me not having the accounts connected was causing a recording issue in my QB version. I look forward to correcting that. I really appreciate your videos! Thank you!
Hi Sarah! This video is very informative! I was trying to get the chart of accounts, and fillup the link with my info., but still haven't gotten it yet. May I please have a copy of your chart of accounts? Thank you!
Amazing video - Thank you! Do you ever experience Etsy statements rolling into the next month Eg. My February 2019 statement starts with 8 line-items from 31st January - How do you deal with this scenario? Also, for UK sellers, in the CSV Statement, Etsy includes US state tax in the Sale Amounts, doesn't include the tax deduction in Fees & Taxes column, but does accommodate the tax the Net column. Have you experienced this and how should I deal with this in my accounts?
Hi David, yes sometimes the statements have unusual cut-offs. I think it's related to time zones, at least that's my best guess! Don't worry about those timing differences. Just use the full CSV file statement that Etsy spits out, that way you'll be able to tie to the ending Etsy balance. I haven't worked much with UK CSV files, if you want to email me some example statements I would be happy to take a look. Sarah@SmallBusinessSarah.com
@@SmallBusinessSarah Hi there, I have a question, how do I get the card payment fee number I got on the Etsy entry app. I was only able to calculate where I got the number for the listing fee and transaction fee but not the payment processing fee. Could you please help me? Thanks, Sarah! Best regards, Virginia
Can I just say that tool on your website is amazing?? Thank you so much! I have a couple of dumb questions - apparently when Etsy verified my bank account, they deposited 1 cent but I don't seem to have a record of them taking it back. So my register is off by 1 cent. What do I do with this transaction? Also, for one month my balance doesn't actually match on the last day of the month because my bank recorded the deposit coming in on the first of the next month but etsy recorded it on the last day of the previous month. Does this matter?
Hi Megan, I've been seeing that Etsy no longer takes out the 1 cent, I bet that starts to add up! I usually just throw that in transaction fees or something. It doesn't matter where, but you are right, it can't go to Etsy Bank. Second question, what you describe is called a deposit in transit. Completely normal. So as long as your Etsy Bank balance agrees after the deposit, you're good to go!
Thank you so much for your awesome videos, Sarah! I'm wondering how to record Etsy print-on-demand shipping costs (from the supplier to the customer), do I need to split them or can I just enter the total sum including the product price and shipping?
I would just record the entire charge from your POD supplier to Cost of Goods Sold. Most likely they just charge you one lump sum, so just categorize that whole charge to COGS.
I tend to use one Etsy Bank, that way I don't have to determine which shop the deposit came from, and then I do use separate income and expense accounts for each shop. Be sure to watch my updated video about the Etsy Bank/Journal Entry Method. Etsy just drastically changed the finance page which makes the process easier. ruclips.net/video/qg4V3KJB6_w/видео.html
Thank you Sarah! You are amazing! Question - does your Etsy Entry App work for Australian sellers? I did my Chart of Accounts and Opening Balance, uploaded my CSVs to your app, got the calculation and did the journal entry, but I can't get a balance with Etsy and QBO. Brain is melting..!
I haven't worked with Australian CSV files yet, but I'm guessing the tax situation might be different? You may need to adjust somehow for any Australian tax collected. Also, the way the app is set-up the description of the line items on the CSV file have to match exactly to be summed together and spit out in the entry. It's possible that Etsy has slightly different names for line items in other countries. What results do you get if you calculate the figures manually?
Hello Sara, thank you so much for the time and effort you put to help others. I have a question, I'm working with a very old version of quick books and trying to register my etsy deposits manually through journal entries, for instance if etsy deposited me $100, I'm typing Etsy Bank $100 debit and then I don't know what other account should I use to balance it. Hope this makes sense. TIA
Your entry would actually be a Debit to Checking (the account where you received the deposit) and a Credit to "Etsy Bank" in the same amount. I think the terminology of "Bank" is confusing to people, I probably should have called it something different, like "Etsy Holding" or "Etsy Receivable". The Etsy Bank account is going to be negative until the end of the month when you make your journal entry.
Thank you for this! Hoping you could help. If I'm putting all of my deposits to this new Etsy Bank, how is it possible to reconcile your business checking account? Is there some type of entry to link the transactions between the two banks? For example, if I put the Etsy net deposit to Etsy Bank and create a JE, the Etsy Bank may be correct, but now my business checking (where my net deposit goes) is off. How do you handle that?
This method does not mess up your checking account. The deposit still shows there. Just like me if you categorize straight to a revenue account, checking still shows the money coming in. Try one transaction and see. Categorize one Etsy deposit to Etsy Bank, then pull up your checking register. Checking has still increased by the amount of the deposit! As it should.
Since Etsy collects sales tax and remits it on our behalf, how do you create accounts in QB to properly account for them coming in and out? I am using a cool program called GreenBack and it automates and sales and expenses and itemizes all fees to sync into QB which eliminates the manual process.
OK, the tool is brilliant. I live in Alberta. We have no provincial sales tax. Is it possible some day to be able to select 'none' for both tax fields? I just select 'Alaska' for now because I know I have no sales there. This deserves a donation! And... the tool isn't picking up the shipping expense for the Postage Labels I purchase through Etsy. Comparing the orders csv on this video with the files I've downloaded it seems the 'Shipping' columns are now named 'Delivery'. I only opened my shop in Sept. 20 so I don't know when the change was made. On the statement, the entry type is 'Postage Label'.
Hi Marc, I was just working with a programmer this past week to make some changes, but we didn't catch the "Delivery" change. Any chance you could email me and send me some sample CSV files? SmallBusinessSarah@gmail.com
Thank you for this video! Super helpful! I have a question though, I have one month where I didn't make any sales and was charged a listing fee of $0.20. I used the app on your website, but it gives me an unbalanced entry that I can't post saying to debit both Listing Fees and my Etsy Bank by $0.20 each with no credits. The charge posted to my personal debit card on the 2nd of the next month. How should I report this?
Hi Sarah, We've used your journal method to input etsy sales. Unfortunately, Quickbooks Online is not picking up the data when I run reports to pay my taxes. Do you know why my tax reports are not picking up on the sales and taxes reported on the journal entries?
With this method you by-pass using the QB sales tax center. I actually do not like using the sales tax center. To find the amount of sales tax you owe at any given time, run a Balance sheet report. Payments of sales tax, when they enter your bank feed, can be categorized directly to sales tax payable.
Hi Sarah! Great video! I have a question though. Has there ever been a time when Etsy charged a sale tax and that charge appears in the order info on Etsy's website but not in the order spreadsheet? I just saw that that happened to me.
Etsy has done a lot of things with sales tax through the years! Keep it in the back of your mind, then do you monthly entry as usual. If your entry is off at the end of the month, and you can't determine why, then that sales tax issue may be the place to look!
@@SmallBusinessSarah Also, in the Orders CSV there are amounts for free shipping and discounts on products. Should we record the amounts that we paid for free shipping and the amount we did not receive due to the product discounts in Quickbooks?
This was extremely helpful! THANK YOU. The app saved me so much time. However, what would I do in the case that there were no sales in a month? I added the Etsy Bank total to the credits side so that they equal, but I'm not sure if that's the right way to go. My ending balance doesn't match on Etsy.
HI Ashley, adding Etsy Bank to the credit side is correct. Chances are you had a negative balance at some point during the month, and Etsy most likely charged your bank account or credit card for the negative amount. I would just double check in your bank feed that those transactions, charges to bring your Etsy account back up to zero, are also categorized to Etsy Bank. You will also see these charges in your Etsy statement CSV file if you sort it.
Hi! Thanks so much for the useful video. I have a question: I registered for QB Self-employed and linked my Etsy shop to it. Do you think it makes more sense to not link your Etsy shop and just mark all weekly Etsy deposits as “income” or is there a benefit to having all the transaction fees, etc. on QB?
Hi Gokce, before you get too involved with QB self-employed, you might want to read my article on it: www.smallbusinesssarah.com/quickbooks-for-etsy/ . I actually don't recommend self-employed for Etsy sellers. QuickBooks Simple Start is a better option.
Hello Sarah - First off THANK YOU for all of this!! You probably already know what a godsend this information and resources are for Etsy sellers. I have a question though. I am trying out your etsy entry app tool and in both of my stores there is no shipping income calculated. We do participate in the free shipping over $35.00 for both stores, but not every order is free shipping, therefore we should be reflecting shipping fees on those orders correct? I am in Arizona, if that helps you out any. Thank you
Hi Christopher. If you open up the statement CSV file, and sort it by Type, is shipping income appearing? If there is shipping income on the statement, but it's not calculating on my app, then I might need to update the app. I have found through working with many Etsy sellers, that Etsy will label certain fees or incomes on the statement CSV file, differently between shops, so multiple names for the thing have to be added to the app calculation! Let me know what you find out!
@@SmallBusinessSarah Hello Sarah, thank you for your reply Yes when I sort there is a type labeled "Shipping Label". I also ran the month manually per your video instructions. Everything that was returned from your Entry App was accurate. It is strange, as if it did not even recognize/calculate the "shipping income, shipping cost, or tax payable", at all for either store. Even when manually calculating there is a discrepancy I am trying to figure out. My beginning balance in Etsy Bank was off but by marginal change. The difference I am after is by hundreds of dollars. Could be something else going on there, but I don't know what it could be because I have already double checked the math manually and in the etsy app you offer, as well as deposits from etsy have been verified. There is a fifth deposit for this month which I think is from the previous month and I am not sure how that will come into play with all of this, but even that debited or credited will only swing the balance about $150.00 in either direction which is still not enough to come close.
....correction - the 5th deposit I mention above hit my OPERATING CKG at my credit union in the same month. It did not affect my "Etsy Bank", balance for that month. So it was a deposit from the previous month but remained there as it should for the "Etsy Bank", purposes, which is good in one regard, but still leaves me questioning where this weird outage is located. According to the statement CSV I do not see any Type labeled payment as if Etsy charged us for anything, and again it would have had to be substantial if it did...hmm...
@@christopheralmaraz8919 I would love to take a look at your data if you don't mind to try and figure out what is going on. Hopefully it will help you and others! Would you mind emailing me at Sarah@SmallBusinessSarah.com? Thanks!
@@SmallBusinessSarah I am sending a message over now. To calm the drama a bit...I think I got it figured out. I did have to manual enter that second half of data (credits) for some reason to get my figures though.
Hi Sarah, thank you so much for the video tutorials. I subscribed as soon as I watched your first video. I am trying to figure out the expenses for my wife’s Etsy shop all the way back to 2017, since we got a 1099 for that year. I am trying to follow along, but I am stuck right at the beginning, trying to get the beginning balance, by going to the last day of the previous month. However, the entire valance column is showing as “--", no number is displayed. Do you know what should the beginning balance be in this case, when no number is displayed? Thank you in advance
Hi Juan, back in 2017 Etsy wasn't using the Payment Account it is currently using, or at least not the same way, so that's why some of the statement information is incomplete. The switch to the current system happened in late 2018. In 2017 the listing, transaction, marketing, and shipping fees were charged in a monthly Etsy bill. The deposits were only net any refunds and the order processing fee. The Etsy Orders CSV file will show you the order processing fee. So as long as you have the Etsy bill recorded in your bookkeeping, you have already captured most of the Etsy fee expenses. If it were me I would probably just post one 12/31/17 journal entry to pull out the order processing fees, refunds, and sales tax from the deposits. I hope that helps!
Love your very detailed videos. I tried the Etsy Tool but it dosent balance with my Etsy statement balance....not sure what I'm doing wrong. Please help!
I would double check the beginning or ending balance and make sure there is not a deposit in transit. (A deposit that Etsy says went to your bank, but didn't arrive in your bank account until the next month.) I would also check for charges Etsy might have made to your checking account for negative Etsy balances. I would also try the manual method to see what numbers you come up with that way.
Thank you SO much for this! I just completed the process for my January 2019 fees and I am noticing that my ending balance in my Etsy Bank register is off by exactly the amount of my starting balance. All of my charges and deposits seem to be there, so I'm not sure what I did wrong. Any advice?
Hi Jess, sometimes there is a deposit in transit that can affect the beginning balance. For example, if the Etsy payment account says that your ending balance is zero, and they sent $100 to your bank on 12/31, but the $100 didn't arrive in your bank account until January, then you have a deposit in transit. $100 was your true Etsy balance as of 12/31, not $0. If that doesn't solve your problem, let me know!
@@SmallBusinessSarah Thank you for the super quick reply! I took a break for a few hours and came back, and suddenly my ending balance in Quickbooks matched my ending balance in Etsy, so I think I was just looking at the wrong number somehow when I wrote my comment. Whoops!
I absolutely love your app. thank you! my question is. my total money coming in (sales+shipping income) does not match my 1099 for that particular month. I was the same for January but all the other months are off. Can you tell me what I am missing? Aren't they supposed to match?
It should only be slight differences, that should be up a little one month, then maybe down a little the next month, so in total, super close. What I have found is that the 1099 figures are drawn from the Payment Sales report, found in the same place as the Orders CSV file. This report will often have a timing difference between what sales are included there and what sales are included on the Statement CSV file we use from the shop payment account. For example, the Shop Payment Account Statement may show a sale on 8/31 at 11:55 pm, but the Payment Sales report will show that same sale on 9/1. I'm not sure why the two reports can't agree, I think it's a time zone issue! For my app to work, I have to use the statement CSV file in order to get the fees and in order to be able to tie to the ending Etsy Bank Balance. If I used the other report, I would not tie to the ending Etsy Bank balance, and that's our check that everything has been done properly. Long story short, you are accurately capturing your shop fees and sales, but the 1099 numbers are pulled from a different report that has a slight timing difference. Hope that helps!
@@SmallBusinessSarah Hi Sarah! Several of us are sharing the love on Reddit. I am also off by $50 for the year with my 1099. I assume that is not great enough to be a problem. However, my P&L shows my refunds as a negative in Income in QB. To match the Etsy 1099, shouldn't that be a positive under Income and then again as a negative under expenses? Otherwise, I am now $543 off from the 1099. I assume that is a problem?
Thank you so much for this helpful video. Just a couple questions, nothing showed up in the sales tax column in my file, including my home state. Also, there were a few charges on our credit card by Etsy, not sure what it's for and where I should put that. Using the Etsy app, the debit etsy bank number did not equal what was actually deposited. Can you please help me?
If your state is a marketplace facilitator tax state (most are now) then a zero will most likely appear in the sales tax column even for sales made in your state. Charges to your card from Etsy can either be purchases you made from another Etsy shop, or they could be Etsy crediting your account when your Etsy balance goes negative. If it's the former, then categorize the expense as usual. If it's the latter, then categorize the Etsy charge to Etsy bank. I believe that is covered in the video. The Debit to Etsy Bank may not agree to the deposits.
I love this method but I am using an older version of QuickBooks Pro so I don't have bank feeds. And with QuickBooks Pro you can't add the Etsy deposits like the video shows. Any tips on how to enter these deposits in QuickBooks Pro so that they are in the right accounts before I do the general journal entry?
Hi Christine, QuickBooks Pro is a desktop version, and I am really only familiar with QuickBooks Online versions. However, I do know of some people on desktop able to use this method. Maybe they have to set-up Etsy Bank as a receivable, not a bank account? Can't remember. So sorry!
This is really helpful! How do you reconcile your bank account each month when you have your income flowing into a "bank" that isn't generating a monthly statement and isn't your actual checking account? Would it make more sense to utilize Undeposited Funds and do the entry first, then match the transactions - which would then move the funds to the operating checking account?
Hi Adelyn, this is a common question. But when we categorize our Etsy deposits to Etsy Bank, it does not affect the checking balance. The checking account balance still increases as a result of the deposit. Take a look at your checking register to see that first hand. Maybe it help to label Etsy Bank as Etsy Holding, or Etsy Receivable. I promise you this all works together, checking account is fine, no need for transfers to checking or anything!
Thanks so much for this helpful video! I couldn’t figure out if i did something wrong because i just did my last two months and somehow around $7 off for each months. i think i checked everything. Any advice? Thank you
I would double check your beginning balance. Then I would make sure that Etsy did not charge your account for a negative balance. These charges also should be categorized to Etsy Bank. The third option would be to calculate the numbers yourself with the CSV file and see if that reveals a difference somewhere. Other than that I would probably just plug the $7 since it is so small, in order to balance.
After I complete the Journal entry, do I need to enter every single individual transaction from the Etsy CSV into Quickbooks? Or is One Journal Entry a month good enough?
I have 3 questions: If I use this method, will I not have sales receipts for the individual sales? So I cannot find what etsy sales were made by looking at the sales receipts? Also, is your app able to work on Macs? and 3rd, If I have no orders during one month and there is no data in the order csv, how do I proceed in your new app?
Hi Martha, my method does not use sales receipts because once your shop starts really selling, that will be impossible to keep up with! Yes, the app works for Macs. The app will still calculate the fees and the entry as normal, even without sales.
The "app" is all done through a web browser, so it's more of a web tool than an app IMO :) You don't need to download any application, which adds to its convenience!
@@SmallBusinessSarah Back again! Yes your app is helpful for getting the info, however, my client wants to easily access sales by venue and if the etsy sales are entered via general journal instead of sales receipts, that info is not as easily accessed. In fact I find it nearly impossible to ferret out what the etsy sales have been.
@@marthareed6699 earlier this year QB came out with an integration called Sync with Etsy that brings in individual transactions. I have a video about it. It may solve your problem, or it may not. What your clue wants may not be possible without a lot of manual and time consuming work.
I'm confused on the shipping expenses. I imported your COA. It breaks down shipping expense as (shipping, freight and delivery) and the shipping supplies as (supplies) but on your JE example you have (shipping fees) which is not on the COA. Please bear with me as I am VERY new at this and apologize if this is a stupid question. Should I create another COA for shipping fees?
No need, you can use the Shipping, Freight and delivery account. Same thing! I just must have created this video with an account where I didn't pre-load my usual chart of accounts, and made them up on the fly!
Thank you so much for this! I'm working on understanding it all, but running across this issue -When I added the bank deposits from Etsy into my Etsy bank they show up as payments and not deposits. I can't figure out how to change this and of course it is messing up my numbers! Anyone know what I did wrong?
Nothing is wrong! In the Etsy bank register, the deposits are going to show up in the payments column, I know, it's confusing! So the balance will appear negative, until you post your entry at the end of the month! Just see the process through!
Thank you for this! Etsy makes things pretty difficult. Question about Etsy Tax, they keep and remit sales tax, so why do you include the Etsy sales tax in your entry if you are not remitting it? Wouldn't that technically be an expense since Etsy collects it and then minuses it from the total they pay out in deposits?
I made this video a long time ago before most states had the marketplace facilitator tax law. Unless you are in MO, your Sales Tax Payable amount from Etsy sales should always be zero.
There are three states that haven't adopted a marketplace facilitator tax law, so Etsy does not collect for them, but as long as you are not a resident, that has no effect on you. You are right that Etsy does collect for California.
Hi Sarah, I am doing a journal entry and the Debit Etsy Bank is a '-338' for me and as you know a negative debit is a positive credit, what do I do in such a case?
It sounds like you should put the 338 in the credit column. You can test if you did everything right when you go to compare the Etsy balance at the end.
Sarah - quick question as I start to go through the process of recording Etsy Sales and Fees. I have 3 Etsy shops. Do I need to set up 3 Etsy Banks in Quickbooks? I'm guessing that's the only way to do it, but wanted to confirm.
Hi Jane, here's how I usually do it. I usually use 1 Etsy Bank account, that way I don't have to worry to which shop each deposit belongs. But then, I set up revenue and expense accounts for each shop. That way I get a clear picture in my Profit & Loss of how each shop is doing. When I'm comparing Etsy Bank in QB to Etsy, I just need to add together the ending Etsy balances of all the shops. Shoot me an email if you have more questions or if you would like me to send you a screenshot of an example.
Sarah Korhnak Thanks that is helpful. Could you send a screen shot or two? But let me see if I understand, I feed the three csv files from Etsy into a single Etsy Bank. And the beginning balance is the sum of the three shops? I don’t think I still quite get it.
Thank you so much for this video and all its 'segments' - so helpful! Quick question: When ETSY charges a refund to my Credit card, where does that get calculated to in the JE? The credit card? Uugh. My brain hurts.
Hi Sarah, two quick questions on the The Etsy Entry App results. I have an Etsy subscription fee of $10 in my monthly statement but it was not picked up in the results shown on your app, has line item debit subscription fee, however it shows zero; Also, am wondering where the Debit Order Processing Fee amount on the app results comes from? it is no where in the monthly statement or monthly orders CSVs downloaded from Etsy. Thanks!!
That's interesting that the subscription fee is not picking up for you, I haven't encountered a similar problem before. I'll need to look into that. In regard to the Order Processing fee, I think the video will show you how the app calculates that. In the statements CSV file, the sales are less fees (the middle column). The fees in the statement are the Order Processing fees, and then the app also adjusts for for any refunds.
@@SmallBusinessSarah Thanks Sarah. I like your bookkeeping teaching and the fact that you yourself are an e-commerce business owner. I booked a call with you to discuss your monthly bookkeeping service :). Looking forward to it!
The app tool has worked well for me on a few months but on one month in particular I can't get QB to reconcile the month. I seem to be off by the amount that equals the NET refund amount for a single refund. My journal entry matches the exported numbers but something isn't adding up for me...
Did Etsy charge your bank account for the amount of the refund (no balance to pull from). If so, that charge from Etsy should also be categorized to Etsy Bank. The next thing to do would be to manually sort the CSV file like in the video, and see if that reveals an error. Sometimes if Etsy changes their wording of a charge, the app won't pick it up, and has to be updated. Let me know if that's the case!
Hi Sarah! For some reason it doesn't let me edit the beginning balance (like you did at 6:41). It just shows "Balance -XX.XX" but theres no place to add it or date to put. Do you know why?
I'm back again, lol! I'm wondering if you would be able to do something like this for eBay too.. the information that Etsy provides is great and all in 2 easy to find files.. but eBay? not so much. I am having a hard time figuring out what my actual numbers are. :(
Hi Dawn! I've added your idea to my to do list, but it will probably take me a bit to get to it. This is such a busy time of year for me! But I'm so glad you suggested it, and will do my best to get to it soon!
@@SmallBusinessSarah thanks! I'm mostly using Excel now, I was using QuickBooks but I don't have the training to use it correctly and my bus is so small that the cost doesn't make sense for me just yet. But I use the methods you shared for calculating "sales for entry" for Etsy and that is very helpful.
I'm in Mexico and I can't use EtsyPay, have to use Paypal. Any refund I have to do it through PP so unless I cancel the order afterwards, my Etsy account would not reflect that. To be honest the bookkeepiing almost causes more stress than the benefit of selling on Etsy. About your app, maybe it would be possible to add an option for people outside the US? I have no idea what to do with these sales taxes.
At some point I may be able to update the app for international sellers. I recently learned that sales tax for many states shows up in international seller's reports. International sellers should ignore those sales tax amounts. To make the app ignore the sales tax, select a state in which you did not have any sales that month. Most sellers make few sales to states like Alaska, Hawaii, Alabama, or Rhode Island. So I would try that.
@@SmallBusinessSarah Thank you so much, but I also discovered the csv files are quite useless to me because payments are made through Paypal. Thus Etsy does not record the sales amounts . The only thing recorded in the csv files are the listing/adversing fees.
@@SmallBusinessSarah Actually I talked to An accountant and she told me the basis for taxes in Mexico is ones bank account. So I probably an get away with just adding up all deposits from PayPal and enter my product cost and be done with it.
I don't recommend Etsy sellers try to track inventory in QB (or any software). It can be very difficult to do (unless you sell supplies) and time consuming. And it's not necessary. When you purchase raw materials, categorize those purchases to Cost of Goods Sold. This is in accordance with the cash basis of accounting (what most small businesses are). You will have to do an end of year inventory count for tax purposes, like all businesses.
Hi, this is helpful but I have one (complicated) question: We sell at retail through Etsy, but we also have non-Etsy wholesale customers. We make greeting cards, and have over 100 products. For every sale, we create a sales receipt or invoice in quickbooks, so we can track what cards are our best sellers, and the EOY costs of goods sold and EOY inventory. QUESTION: To use your method, should we NOT create sales receipts in quickbooks for each of our Etsy sales??? Just input gross Etsy sales figures into quieckbooks? Or do we need to create duplicate "products" for each item, to show which are Etsy sales of product income, and which are Wholesale sales of product income? I searched for and watched your videos because this business of Etsy collected sales tax for us in so many states has gotten so complicated, or so it seems. But you're basically saying that since Etsy tax collected and paid is pass through, we don't need to really track it in any way!
I'll answer the easy part first! If Etsy is the one collecting and remitting the sales tax, then no, you don't need to worry about it. As to the rest, as your business grows, creating sales receipts for each product will become far too time-consuming. So that's one thing I love about my method, its' fast and accurate. Generally, for handmade sellers I don't recommend tracking inventory or COGS per each item in their accounting program. That also tends to create a lot of extra effort. In general, I recommend that all purchases of raw materials be categorized to COGS, and then at the end of the year doing an inventory count of items on hand. These are just my recommendations, if you like your system, stick with it!
@@SmallBusinessSarah Thank you! Is the theory that if any particular state comes after us to prove we paid sales tax on an Etsy purchase, we just produce our Etsy sales order, showing that Etsy paid the tax? I know, we are really small fry here on Etsy, but I like to think about the worst case scenario.
@@donnahaggarty-robbins5555 If your state has passed a Marketplace Facilitator Tax Law (most have) then it becomes Etsy's responsibility to collect and remit tax, not yours. So I don't think a sales tax examiner could have any issue at all related to sales you made on Etsy. You may need to check if your state still wants you to submit a zero return. If you made sales outside of Etsy, then that sales tax would be on you!
Is this applicable to QBDT? and is it possible to share these monthly reports from Etsy by emailing them to the bookkeeper? Are they printable or share-able?
Hi Martha, this method will work with QBDT. And yes, you can give them to your bookkeeper. Just download the CSV files each month and email them to your bookkeeper.
How do we account for the sales tax that etsy collects on our behalf? I'm sure that is in our gross sales (1099-k) correct? I have followed your instructions but on the sold orders sales tax column its zeros. I'm $517 short from what my 1099-k shows on my tax info on etsy. Would you assume that its the sales tax? Everything else is accounted for and correct.
Hi Jennifer, I just recorded a video that will walk you through agreeing your Profit & Loss to the 1099. Hopefully it answers all of your questions! ruclips.net/video/hMc7W_rHsro/видео.html
Hi. I've been using for the past year. It's been so helpful. However, I've tried this month three different browsers to get the page on your website to load to use the tool but have been unsuccessful. Error 404 after I upload for it to calculate. And now I can't get the page to load at all. Has anything changed? Thanks
Yes, the files have to be in CSV file format in order for the app to work. If you just hit download from Etsy, the files will automatically go in your download folder, in the correct format. No need to open them or change anything.
does this app work across the US only? I'm trying but this app showing only 0 amount and sample of JE only. I'm following same way as you explained in video. Can you plz help?
I'm a creative who literally wanted to cry when I was faced with trying to navigate Etsy and balance my books for the first time. THIS VIDEO SAVED ME. For the first time ever I was able to balance/reconcile my account with your help. THANK YOU SO MUCH SARAH!!!
So glad it helped!
It always frustrated the bejesus out of me why the Etsy reports failed to be 100% accurate or included all the info we need. For a site with millions (?) of sellers, why?? Thank you, Sarah, for the huge lightbulb!
"on no, hopefully this will work". My favorite line of the lesson. I am absorbing ever minute! Thank you for the excellent content.
Glad you like my a bit off the cuff not very professional approach! : )
I just used your app and entered the whole year's worth of Etsy statements! Thank you so much for this!
You are so welcome!
I am worried why you dont have an ad on your video because this is the world class video on RUclips!!
In 2022 Etsy made changes to the Finances Summary. This is the new way to calculate your monthly journal entry: ruclips.net/video/qg4V3KJB6_w/видео.html Do this instead!
Thank you so much for this... I'm new to QBO, and have been trying to do bookkeeping for both my Etsy and eBay stores. Your video is the best that I've found on this!
Wow, thank you for making this video and series! My bookkeeping was not balancing out and I didn't know why. This is a lifesaver! I'm starting the playlist from video one starting tomorrow and hoping to get all of my bookkeeping for 2020 resolved by the end of the week! Thank you thank you!
You're so welcome!
@@SmallBusinessSarah I just sent you the one time yearly fee option. This series really helped me more than I can begin to explain. Dealing with my bookkeeping and taxes has been a constant struggle with my business, a past I wont even begin to get into right now, and now that I've taken over my bookkeeping personally, I feel like I'm getting a hold on it with your help!
two words - Rock. Star! I was dreading having to put the Etsy numbers in, and you've saved me hours (and hair that I would have been pulling out trying to figure this stuff out!!!) Thank you so much!!
Glad I could help!
Thank you Sarah! I was looking everywhere and finally came across your videos! Perfect timing! ;-)
Wow. Thank you SO much. This was incredibly helpful. I wasn't sure if I should use an Etsy app integration or go manual and your video not only helped me decide which route to take but also helped me get it done! I was nervous but your step-by-step instructions where on point! Can't thank you enough!
iTS ALMOST HARD TO BELIEVE HOW INCREDIBLE AN AWESOME THIS ETSY APP IS! uNREAL HOW MUCH TIME THIS SAVED. SARAH YOU ARE INCREDIBLE!!! LOVE LOVE LOVE!!!
Sarah, thank you so much for these videos. I used your affiliate link to buy QB. There is no way a non-accounting person would ever be able to figure this all out! I am going to recommend your website on Reddit when people complain about their Etsy taxes. Hope that helps you out.
Thanks so much! I really appreciate it. The accounting degree certainly helps to problem solve bookkeeping issues like this! Glad I can pass along a somewhat easy solution to shop owners without an accounting degree!
Thank you for the app!! I’ve been using your journal entry method since Etsy started lumping everything together, but I always dread and put it off. Now all I need to do is upload the csvs. Amazing, and well worth the suggested monthly fee!
Hi Rita. I'm so glad you are finding the App and my Etsy method helpful! I appreciate you taking the time to leave a comment.
Sarah, firstly, thank you times a million. Secondly, I can't believe Etsy is pushing it's sellers to sign up for Quickbooks Self- Employed when it isn't even set up to meet our needs. They could SO easily fix the reporting and create breakdowns like your app does. My only conclusion is that they are getting major kickbacks from trying to sell Quickbooks SE to their sellers. So very disappointing!
Self-employed is very disappointing! Maybe someday a better solution will be out there.
Thank you SOOO much! I have my first e-commerce client and this is perfect! You made it so easy to follow!
If your client is an Etsy seller, there have actually been several changes since this video was created. I would take a look at the following video which outlines the best options for Etsy bookkeeping in 2022: ruclips.net/video/eG_3p5yP4EQ/видео.html
Thank you this is awesome! I don't use quick books but it still makes sense of how clearly you explain it. Thank you.
Glad it was helpful!
brilliant! I was about to close my Etsy shop till I saw the app at the end. My Etsy sales don't make all this book keeping worth it. Will hang out till the holidays then reassess.
Just wanted to let you know that when you do start needing more involved bookkeeping with QuickBooks Online, earlier this year QB came out with an integration called Sync with Etsy, and it's free! I still use my old method for clients with more than one shop, but check out Sync with Etsy when the time comes: ruclips.net/video/dDQUS3b9bMo/видео.html
Hello Sarah. I used the Etsy Entry App for the first time today. It is indeed a time saver. Thanks!!
Hi Anne, so glad you like it!
Gold!! Thanks for making what seems overwhelming accounting to clear and easy to use steps. liked & subscribed!
Thanks! Glad it was helpful!
@@SmallBusinessSarah Hi there, Once I add my Etsy as a bank. You no longer have to add your other bank to show income?
@@SmallBusinessSarah Hi there, Once I add my Etsy as a bank. You no longer have to add your other bank where i got the deposit from etsy balance?
@@Kj73908 No. You still need your business bank account synched in QB. That's where your deposits come in that we categorize to Etsy Bank.
Thank you! this has been so very helpful.
OMG!!! You are soooo awesome 👏🏽! I was able to follow step by step. Thank you!!!
Wonderful!
Just found this updated video. I can't believe how much i've learned so far. My question is: should I create different Etsy Banks in QB if I have more than one Etsy store? So Etsy Bank for Store 1 and Etsy Bank for Store 2 or just manually combine and enter those numbers into one Etsy Bank on QB?
I responded on the other video too, but I'll respond here also for the benefit of others! You can choose either option. Generally, it's easier to just have one Etsy Bank, that way when you are categorizing your transactions, all the deposits just go to Etsy Bank, and QB remembers that. Regardless of if you choose to use one Etsy Bank or two, I always separate my revenue and expenses by shop. For Example Etsy Shop ABC Revenue and underneath it all the income accounts for that shop and then Etsy Shop XYZ Revenue and underneath it, all the income accounts for that shop. Same for expenses. That way you'll know how each shop is performing.
This is SO incredibly helpful!!! Thank you so much Sarah.
Thank you so much Sarah, this was fantastic! It made my life so much simpler!
So glad!
Sarah this was a fantastic video - thanks so much!!
This video has been so helpful. Am attempting to do this now but am wondering if you can start your Etsy bank with a negative amount? Thank you!
If your beginning balance in Etsy was negative, then yes you should start with a negative amount.
Thanks so much @Sarah! This is a life saviour! Have been waiting for this vid since your comment in your prev. video! And really appreciate you sharing your BRILLIANT app! It's super handy and saves so much time! Will try it out and support! Thanks again you're the best.
What if we're not in US (in AU) - Which sales tax state do we select? I don't see an option for None?
First of all your channel is great! I have recommended it to a few friends! I live in the UK and things are slightly different over here, is there any advice you can offer? Would your current video work with my book keeping? thanks in advanced :)
Hi Sam, the advice I give international sellers is to select a state in which they had no sales that month. Usually Alabama is a safe choice. Then U.S. sales tax won't affect your entry. Other than that, I haven't had a chance to test international CSV files. I'd be happy to take a look if you would like. Shoot me an email at Sarah@SmallBusinessSarah.com
Thank so much for making this video - so helpful! One question - we sell several different types of products on Etsy and need to track what sells, what doesn't, etc. When you setup your journal entry, can you break the sales out by different products? If so, is that sub-sales accounts?
Yes, you can create sub-accounts of Etsy sales. I would just caution you that the more granular you make your bookkeeping, the harder it is to keep up with. Sometimes it's better to track things like that separately, not in your bookkeeping records.
You are awesome! I am in love with your voice, it's so young!!
Haha! My voice has always sounded young! I'm almost 40!
Thank you for these great videos, they have been so helpful in my Etsy bookkeeping.
Question: How would I record a month where I only have marketing fees and no income?
Thank you!
Have you seen my updated video? ruclips.net/video/qg4V3KJB6_w/видео.html The entry is pretty much the same expect you would have a debit for marketing expenses and your etsy bank amount would be a credit instead of a debit.
@@SmallBusinessSarah Thank you! I figured it out shortly after posting the comment. I am done with Etsy and now moving onto Shopify. Thank you so much for the videos and chart of account csv!!!
Loved the video and the app. Was just wondering if the Tab for taxes will include Canadian provinces with the update. Thanks again for a great video!!
Hey Tina, I would love to if I can. Would you mind emailing me? smallbusinesssarah@gmail.com
@@SmallBusinessSarah Are we supposed to reconcile the Etsy Bank every month the same as our checking account?
@@maddogfabrics2021 you certainly can formally reconcile it each month. At a minimum just make sure you compare the ending balance per Etsy to the ending balance in the Etsy bank register in QB.
Thank you so much for providing this information, it helped streamline the entering into the Journal. I do however have a question. I had a credit card charge tacked onto the very last day of the March 2022 statement because I shipped a package that weighed more than I originally had down so I had to pay the fee. Working on the journal for April 2022, I was not sure how to report that charge - Etsy shipping expense or under something else? Can you provide a little insight with credit card charges made and how to report it in the journal? I would greatly appreciate it, thank you!
Hi Lisa, from what you are describing, I assume your Etsy payment account went negative and then Etsy charged your credit card to bring you back up to zero? In that instances, the charge to your credit card from Etsy should also be categorized to Etsy Bank. You will automatically capture the full amount of the shipping charge in your monthly journal entries. Hope that helps! Sorry your question got buried in my list of open questions!
I checked the calculator in your website which is really cool. It makes the life easier it gives an exact entry to create a journal. But it seems it is not working for the year 2021. It works only for the year 2020. Can you please check and correct it. Also if you can do a similar series with Etsy bookkeeping with Wave Accounting . That would be really cool and helpful to many.
Etsy changed their wording on the csv file for shipping, that's why it's no longer being picked up. I am in the process of hiring a developer to fix this. In the meantime check out my new video on the Sync with Etsy integration.
Thank you so much for your videos and instructions! They have been so helpful! Now I am wondering how to tie in inventory with those etsy sales. How can I track what is actually being sold on etsy and have those items come out of my inventory in quickbooks? Do you have any other videos that address this?
Hi Rebecca, most product sellers don't need to track inventory throughout the year in their bookkeeping records. It's far too time-consuming for most handmade sellers, and QB is not really set-up to accommodate inventory tracking for Etsy sellers. In addition, most small business owners are on the cash basis of accounting, and the cash basis of accounting does not record inventory. Instead, all raw material purchases can be categorized as Cost of Goods Sold. For tax purposes, at the end of the year, you will do an end of year inventory count for the calculation on page 2 of the Schedule C. That's it. Recording everything to COGS keeps the bookkeeping simple, straightforward, and easy.
Great Video. Thank you for taking the time to post. One question I still have... How do I correctly enter the Cost of Goods sold for Etsy Sales?
All raw materials purchased for your products can be categorized straight to Cost of Goods Sold, this is the easiest and fastest method. Most accounting programs are not really designed to track the COGS per item sold for handmade products.
Sarah Korhnak I agree. Thats what I have done in past years but now that I produce larger batches, unsold inventory carries over into the next year. Would adding a line for COGS in the journal entry on a monthly basis make a mess of the reconciliation? With Amazon sales, I have successfully integrated Webgility into QuickBooks but I have heard horror stories with Webgility/Etsy integration. Thanks again for your great content!
@@HuckVenture Adding COGS to the journal entry would mess it up. For tax purposes I am sure you are doing an end of year inventory count. You could also adjust your bookkeeping at year end to account for inventory on hand.
Hi Sarah! on 14:30, you mentioned about the 'Charge for Refund'. How would I record that to Quickbooks? Looking forward to your response. Thanks!
If they charge your account, in QB that is also categorized to Etsy Bank.
Hi Sarah, thank you so much for these series of videos! They are amazing, as well as your app!
Quick question. I have 3 Etsy Shops. I have already balanced my first shop. Would I just download the chart of accounts 2 more times, and label them " Etsy Bank 2" " Etsy Bank 3" and follow the same process?
Yes. I set-up separate income and expense accounts for each Etsy shop, but I categorize all deposits to the same Etsy Bank. That is the best way I have found. Did you see the video on the new Sync with Etsy? It would only work for one shop, but it is a great integration, and free! ruclips.net/video/dDQUS3b9bMo/видео.html
Thank you so much for this information! SO incredibly helpful on my journey to learning e-commerce for bookkeeping clients. Couple of quick questions. 1 - would you do the same kind of process for Ebay and for Amazon, if a client did not want to use a third party app integration. (Which I'm not ready for myself!) 2 - I'm a bookkeeper in Canada, so to better understand marketplace facilitator taxes for the US, and how you calculated your Etsy Journal.. My question is this...you showed that you were calculating a certain amount of tax for your home state PA, but nothing for other states. Is that because, if your an online business in the US in a particular state, you have to be registered and remitting taxes no mater what the thresholds are for your home state sales. ANd were there $0 taxes in other states on your journal because thresholds are not met yet, or because thats the way the report is presented to you in Etsy for states with marketplace facilitator laws?
Hi Patti. EBay I handle slightly differently because it is much more straightforward. Deposits go to PayPal and these can be categorized as eBay income. Fees are charged monthly, and can be directly categorized to EBay fees. Here is my Amazon video: ruclips.net/video/nx5mjPY3uCI/видео.html . I haven't worked with a Canadian seller, but if on my app you select a state where they had no sales, Alabama lets say, the app should correctly spit out zero for the sales tax amount. What I don't know is if you need to add a tax amount to Canadian sales. You are right that I only have to register in my state of PA for sales tax unless I meet certain high thresholds in other states. But, those same states are now requiring marketplace facilitators (Etsy) to collect and remit sales tax for every sale. This is true of most states now. When Etsy collects and remits these taxes, it should report 0 in the sales tax column. However, I have noticed in the past that Etsy will sometimes put a tax amount in that column in error. It's getting better, but that's why I only worry about amounts in the sales tax column for PA.
Your tutorials are extemely helpful! I have a question about what to do with the Shipping Discount. There are periods of time where I did not charge shipping and Etsy has this broken out on the Sold Orders report as "Shipping Discount". Do I need to record this in my JE somewhere?
No, you can ignore that column. It gets tricky to factor that into the entry, and everything works out lovely without it.
Sarah, you're an answer to prayer. In one year I went from Quicken to QB MAC desktop to QB Simple Start and your videos are like a light bulb in my head lighting up! I'm watching all of them and reading the comments too. Thank you! I'm doing this manually because I'm using Shopify. Do I manually deduct my Shopify, AmazonPay and PayPal fees? Or does the PayPal Bank App take care of the PayPal fees?
Additionally, how did you calculate your Shipping Income and Shipping Debits? My Shopify Fin report simply includes shipping, so should I assume that my shipping income is included in my gross sales number? I also had a customer use a discount, so should I use my net sales instead of my gross sales when I calculate it all out? I think I'm getting it....think is the key word! Thanks Sarah
Hi Elicia, for Shopify your entry will be very similar to Etsy. From your comment below it sounds like you found your Financial Summary report in Shopify. That's the one I use. Assuming all deposits went to "Shopify Bank" or "Shopify Receivable" then I Credit Gross Sales, Debit Discounts, Debit Refunds, Credit Shipping Income, and Credit Sales Tax collected. Your PayPal fees will be automatically deducted by PayPal. But you will need to Debit your Shopify transaction fee which can be found on your Payouts page. I can't remember off the top of my head how the AmazonPay fee is handled. If each deposit is net the fee, or if the fee comes out of your checking account on a monthly basis. If it's the former, then find that fee and add it as a Debit in your entry. The balancing number is to Shopify Bank. I do plan to make a video about this soon, I'm just swamped this time of year! Good luck!
Your video is really helpful! What do you put your orders under, or do you just do the journal entry for those? For example, I use Sales Receipts and have those imported over from Webgility into Undeposited Funds but I am have a hard time tying everything together...
I recently worked with a client using Webgility to bring over her orders as sales receipts. In her case, Webgility was incorrectly recording them as negative undeposited funds. We could not find an easy way to work with Webgility and get accurate results quickly. We scrapped Webgility, saved her $50 a month, and she is doing things exactly as I outline in the video. No individual orders to worry about on the QB side.
Awesome video again! Thankyou! Just to clarify... so you don't link your etsy account into your QBO bank feed at all? Correct?
Yep! You don't link Etsy to QBO.
Hi Sarah, I love your "Bank" or "clearing account" method which allows us to see the month end balance that (Shopify/Etsy/Amazon) still owes us and I love that the monthly Journal entries to breakout the different sales components so our P&L will match to Shopify sales summary.
However, do you think there is a need to do it on monthly basis, is not it easier to do it once at year end and pass one journal entry? it may take more time than one month work but I think it will be far less effort than doing it 12 times a year, what is your view on yearly recording?
As for Canadian sellers like me, do you recommend using the month end exchange rate to translate USD sales into CAD when we post the monthly journal entry to QBO? or is there is monthly average rate that can be used instead?
Appreciate your advice and view!
Thank you !
I have posted year end entries when I need to do a big clean-up for a whole year. However, I would recommend monthly entries just so you have a good idea of your monthly financial progress each month. The point of bookkeeping is to allow your financial reports to inform your business decisions.
When I have worked with U.S./Canadian exchange rates in the past, I've used the Payouts section of the Amazon reports and compared it to the Payouts in the bank statement, to come up with the exchange rate for that month. Then applied that rate to the revenues & expenses.
So incredibly helpful thank you! I am not an accountant so please bear with me. How do you take into account the cost of the products sold during the month, shouldn't they be incorporated into the profit in loss statement so you can keep track of inventory sold?
All raw materials purchased will come through your bank feed, and can be categorized to Cost of Goods Sold.
Thank you so very much for the wonderful video!
Glad it was helpful!
Hello Sarah! Thank you so much for your hard work! I have a quick question that I can't figure out. I've looked everywhere and I am hoping you can help. You noted that your shipping postage is $50.03. However you put $82.09 in shipping income. How did you get this number? I know the shipping postage is $50.03 is what Etsy charges us.... but the additional income for shipping.... where do I get that number? Thank you in advance. I love your videos!!! :)
Hi! Shipping Income comes from the Etsy Orders CSV file. There is a column for shipping on that spreadsheet, which is the amount of money that you charged customers for shipping.
@@SmallBusinessSarah Are you accepting applications for Etsy qb ? LOL THANK YOU!!!!
Thank you so much, this is the first time that I have even come close to understanding my Etsy accounts (and Quickbooks, for that matter)!! I would love to try out your Etsy Entry App, but I'm in the UK - is there any way of entering 'none' in the Sales Tax State field?
Hi Liz, if you select a state that you rarely make a sale to, for example, Alabama, then the sales tax payable amount will always show as zero, and won't mess up the rest of the calculations. I'm not familiar with how sales tax works in the UK, so you may need to manually break out any sales tax you collected in the UK. If you need to break that out, credit sales tax payable and reduce sales by the same amount. I hope that helps!
Thank you for the step by step. I've been generating my own Excel and it works really well. It was nice to have a "yard stick" by which to measure my calculations. Quick question: What is the Shipping Cost Credit in your app and how is it calculated?
I'm not exactly sure how Etsy generates the Shipping Cost Credit number. But since it's there, we've got to account for it!
@@SmallBusinessSarah I meant, which file do you gather that information from? I don't see an entry for it in either the statement or SoldOrders file.
@@aaronbarkel4005 If you ever have it, it will appear on the statement csv
Hi Sarah , thank you so much for all the videos. I’m taking over my books from Jan and have viewed your videos numerous times. My question is... I have a couple Etsy stores and a Shopify. For Etsy I’m only using one Etsy bank but have broken down each store in my chart of accounts. Is that wrong or just fine? Also, doing a journal entry, do I do one for each store or just each selling platform.. for instance should I add up my numbers for each Etsy store and do one journal entry for Etsy? One journal entry for Shopify or is it ok to do journal entries for each store?
Hi Jode, when I do bookeeping for a company with multiple Etsy shops I only use one Etsy Bank account, but then use separate revenue and expense accounts for each shop, just like you are doing. For my journal entries, I tend to do one journal entry for all my Etsy shops. For example, I'll list the accounts and amounts for shop A, then move on to the accounts and amounts for shop B, all in the same entry. However, you could do a separate entry for each shop if you wanted. It won't matter either way, as long as you capture all the information somehow, you'll be fine. I do tend to do a separate journal entry for Shopify, and not mix it with my Etsy entry. I handle Shopify in a very similar way as Etsy. I did recently post a Shopify video if you haven't seen that yet: ruclips.net/video/DPFV6WVrfnA/видео.html
Sarah Korhnak thanks Sarah, I did watch the Shopify video too. Thanks for that.
Hey Sarah! This looks amazing and I totally appreciate your videos. However, I have a question that I haven't heard mentioned in your videos. What is the actual function of the Etsy Bank? Is it simply for categorization or does the money need to be "transfered" from your receiving bank account to this new Etsy Bank category? [ Please Note: I've taken over my accounting from a previous accountant who never connected the bank account so I still input all of my transactions manually monthly according to my bank statements. I have one bank account for my business and all Etsy deposits go in there. I also have a Business Enterprise Quickbooks Account, so I'm trying to use your same concepts inside of this other software version.] I've added all your Categories including Etsy Bank. When I add in Etsy deposit entries to my actual Bank Account register I put the category as Etsy Bank. Then when I do my General Journal entry for all the info from the Etsy Entry App, the Etsy Bank category then shows a listing for the General Journal total (so that's the same number shown twice in this account), and also still shows the original deposit from Etsy in my actual Bank Account. So when I look at the Chart of Accounts the Etsy Bank total is showing double the amount that I received and my actual Bank Account still accounts for the original deposit. I guess my question is - is Quickbooks actually registering this as double or triple the income or is it just categorizing the information differently in that bucket and still only seeing the original funds (since this is actually not a bank account and there is no actual money flowing through there)? I'm wondering if I misunderstand how the Etsy Bank was supposed to function, or if this some glitch that I happened because I'm entering it manually and your connected accounts already recognize the funds as the same funds. Sorry I realize there are a zillion variables here, but I think just a general conceptual understanding of how that Etsy Bank functions in relation to the deposits from the actual Bank Account would help me get my mind around it. Any help would be great! Thanks so much!
Hi Monique, the Etsy Bank account is just a Holding Account or a Clearing Account. We are simply categorizing all the deposits to one place, so we can parse them out to their respective revenue and expense accounts at month end. From your comment, I'm not sure what you meant by this, " the Etsy Bank category then shows a listing for the General Journal total". But it does sound like something is going wrong if the Etsy Bank balance is showing as double. Also I would recommend connecting your accounts! You will save yourself so much time in manual entry.
@@SmallBusinessSarah Thanks so much for the clarity! I definitely thought it was a holding account but when I saw a total for it in my Chart of Accounts view I was suddenly worried that it would be seen as more revenue for tax time. I do think that me not having the accounts connected was causing a recording issue in my QB version. I look forward to correcting that. I really appreciate your videos! Thank you!
Hi Sarah! This video is very informative! I was trying to get the chart of accounts, and fillup the link with my info., but still haven't gotten it yet. May I please have a copy of your chart of accounts? Thank you!
Just emailed a copy to you!
Amazing video - Thank you! Do you ever experience Etsy statements rolling into the next month Eg. My February 2019 statement starts with 8 line-items from 31st January - How do you deal with this scenario?
Also, for UK sellers, in the CSV Statement, Etsy includes US state tax in the Sale Amounts, doesn't include the tax deduction in Fees & Taxes column, but does accommodate the tax the Net column. Have you experienced this and how should I deal with this in my accounts?
Hi David, yes sometimes the statements have unusual cut-offs. I think it's related to time zones, at least that's my best guess! Don't worry about those timing differences. Just use the full CSV file statement that Etsy spits out, that way you'll be able to tie to the ending Etsy balance. I haven't worked much with UK CSV files, if you want to email me some example statements I would be happy to take a look. Sarah@SmallBusinessSarah.com
Hi David, Please can I ask how you sorted Etsy including the US sales tax in the sale amounts? Do you have a method for it? Cheers!
@@SmallBusinessSarah Hi there, I have a question, how do I get the card payment fee number I got on the Etsy entry app. I was only able to calculate where I got the number for the listing fee and transaction fee but not the payment processing fee. Could you please help me? Thanks, Sarah!
Best regards,
Virginia
Can I just say that tool on your website is amazing?? Thank you so much! I have a couple of dumb questions - apparently when Etsy verified my bank account, they deposited 1 cent but I don't seem to have a record of them taking it back. So my register is off by 1 cent. What do I do with this transaction? Also, for one month my balance doesn't actually match on the last day of the month because my bank recorded the deposit coming in on the first of the next month but etsy recorded it on the last day of the previous month. Does this matter?
Hi Megan, I've been seeing that Etsy no longer takes out the 1 cent, I bet that starts to add up! I usually just throw that in transaction fees or something. It doesn't matter where, but you are right, it can't go to Etsy Bank. Second question, what you describe is called a deposit in transit. Completely normal. So as long as your Etsy Bank balance agrees after the deposit, you're good to go!
Thank you so much for your awesome videos, Sarah! I'm wondering how to record Etsy print-on-demand shipping costs (from the supplier to the customer), do I need to split them or can I just enter the total sum including the product price and shipping?
I would just record the entire charge from your POD supplier to Cost of Goods Sold. Most likely they just charge you one lump sum, so just categorize that whole charge to COGS.
Hi Sarah I have 2 Etsy shops. Would you recommend if I create 2 Etsy Banks in the same QB account and have separate chart of accounts for each shop?
I tend to use one Etsy Bank, that way I don't have to determine which shop the deposit came from, and then I do use separate income and expense accounts for each shop. Be sure to watch my updated video about the Etsy Bank/Journal Entry Method. Etsy just drastically changed the finance page which makes the process easier. ruclips.net/video/qg4V3KJB6_w/видео.html
Thank you Sarah! You are amazing! Question - does your Etsy Entry App work for Australian sellers? I did my Chart of Accounts and Opening Balance, uploaded my CSVs to your app, got the calculation and did the journal entry, but I can't get a balance with Etsy and QBO. Brain is melting..!
I haven't worked with Australian CSV files yet, but I'm guessing the tax situation might be different? You may need to adjust somehow for any Australian tax collected. Also, the way the app is set-up the description of the line items on the CSV file have to match exactly to be summed together and spit out in the entry. It's possible that Etsy has slightly different names for line items in other countries. What results do you get if you calculate the figures manually?
Hello Sara, thank you so much for the time and effort you put to help others. I have a question, I'm working with a very old version of quick books and trying to register my etsy deposits manually through journal entries, for instance if etsy deposited me $100, I'm typing Etsy Bank $100 debit and then I don't know what other account should I use to balance it. Hope this makes sense. TIA
Your entry would actually be a Debit to Checking (the account where you received the deposit) and a Credit to "Etsy Bank" in the same amount. I think the terminology of "Bank" is confusing to people, I probably should have called it something different, like "Etsy Holding" or "Etsy Receivable". The Etsy Bank account is going to be negative until the end of the month when you make your journal entry.
@@SmallBusinessSarah oh my, thank you so much. Accounting terms are confusing to me, but your videos are so so helpful. I can't thank you enough!
Thank you for this! Hoping you could help. If I'm putting all of my deposits to this new Etsy Bank, how is it possible to reconcile your business checking account? Is there some type of entry to link the transactions between the two banks? For example, if I put the Etsy net deposit to Etsy Bank and create a JE, the Etsy Bank may be correct, but now my business checking (where my net deposit goes) is off. How do you handle that?
This method does not mess up your checking account. The deposit still shows there. Just like me if you categorize straight to a revenue account, checking still shows the money coming in. Try one transaction and see. Categorize one Etsy deposit to Etsy Bank, then pull up your checking register. Checking has still increased by the amount of the deposit! As it should.
Since Etsy collects sales tax and remits it on our behalf, how do you create accounts in QB to properly account for them coming in and out? I am using a cool program called GreenBack and it automates and sales and expenses and itemizes all fees to sync into QB which eliminates the manual process.
OK, the tool is brilliant. I live in Alberta. We have no provincial sales tax. Is it possible some day to be able to select 'none' for both tax fields? I just select 'Alaska' for now because I know I have no sales there. This deserves a donation!
And... the tool isn't picking up the shipping expense for the Postage Labels I purchase through Etsy. Comparing the orders csv on this video with the files I've downloaded it seems the 'Shipping' columns are now named 'Delivery'. I only opened my shop in Sept. 20 so I don't know when the change was made. On the statement, the entry type is 'Postage Label'.
Hi Marc, I was just working with a programmer this past week to make some changes, but we didn't catch the "Delivery" change. Any chance you could email me and send me some sample CSV files? SmallBusinessSarah@gmail.com
Thank you for this video! Super helpful!
I have a question though, I have one month where I didn't make any sales and was charged a listing fee of $0.20. I used the app on your website, but it gives me an unbalanced entry that I can't post saying to debit both Listing Fees and my Etsy Bank by $0.20 each with no credits. The charge posted to my personal debit card on the 2nd of the next month. How should I report this?
I just answered your same question from a week ago, sorry for the delay!
Hi Sarah,
We've used your journal method to input etsy sales. Unfortunately, Quickbooks Online is not picking up the data when I run reports to pay my taxes. Do you know why my tax reports are not picking up on the sales and taxes reported on the journal entries?
With this method you by-pass using the QB sales tax center. I actually do not like using the sales tax center. To find the amount of sales tax you owe at any given time, run a Balance sheet report. Payments of sales tax, when they enter your bank feed, can be categorized directly to sales tax payable.
So helpful! Thank you so much
Glad it was helpful!
Hi Sarah! For Amazon sellers... Should we add our beginning amazon bank balance? The same way that you did here?
Yes! If you have a beginning Amazon balance, you should add it to QB.
Hi Sarah! Great video! I have a question though. Has there ever been a time when Etsy charged a sale tax and that charge appears in the order info on Etsy's website but not in the order spreadsheet? I just saw that that happened to me.
Etsy has done a lot of things with sales tax through the years! Keep it in the back of your mind, then do you monthly entry as usual. If your entry is off at the end of the month, and you can't determine why, then that sales tax issue may be the place to look!
@@SmallBusinessSarah Also, in the Orders CSV there are amounts for free shipping and discounts on products. Should we record the amounts that we paid for free shipping and the amount we did not receive due to the product discounts in Quickbooks?
This was extremely helpful! THANK YOU. The app saved me so much time. However, what would I do in the case that there were no sales in a month? I added the Etsy Bank total to the credits side so that they equal, but I'm not sure if that's the right way to go. My ending balance doesn't match on Etsy.
HI Ashley, adding Etsy Bank to the credit side is correct. Chances are you had a negative balance at some point during the month, and Etsy most likely charged your bank account or credit card for the negative amount. I would just double check in your bank feed that those transactions, charges to bring your Etsy account back up to zero, are also categorized to Etsy Bank. You will also see these charges in your Etsy statement CSV file if you sort it.
Hi! Thanks so much for the useful video. I have a question: I registered for QB Self-employed and linked my Etsy shop to it. Do you think it makes more sense to not link your Etsy shop and just mark all weekly Etsy deposits as “income” or is there a benefit to having all the transaction fees, etc. on QB?
Hi Gokce, before you get too involved with QB self-employed, you might want to read my article on it: www.smallbusinesssarah.com/quickbooks-for-etsy/ . I actually don't recommend self-employed for Etsy sellers. QuickBooks Simple Start is a better option.
Hello Sarah - First off THANK YOU for all of this!! You probably already know what a godsend this information and resources are for Etsy sellers. I have a question though. I am trying out your etsy entry app tool and in both of my stores there is no shipping income calculated. We do participate in the free shipping over $35.00 for both stores, but not every order is free shipping, therefore we should be reflecting shipping fees on those orders correct? I am in Arizona, if that helps you out any. Thank you
Hi Christopher. If you open up the statement CSV file, and sort it by Type, is shipping income appearing? If there is shipping income on the statement, but it's not calculating on my app, then I might need to update the app. I have found through working with many Etsy sellers, that Etsy will label certain fees or incomes on the statement CSV file, differently between shops, so multiple names for the thing have to be added to the app calculation! Let me know what you find out!
@@SmallBusinessSarah Hello Sarah, thank you for your reply Yes when I sort there is a type labeled "Shipping Label". I also ran the month manually per your video instructions. Everything that was returned from your Entry App was accurate. It is strange, as if it did not even recognize/calculate the "shipping income, shipping cost, or tax payable", at all for either store. Even when manually calculating there is a discrepancy I am trying to figure out. My beginning balance in Etsy Bank was off but by marginal change. The difference I am after is by hundreds of dollars. Could be something else going on there, but I don't know what it could be because I have already double checked the math manually and in the etsy app you offer, as well as deposits from etsy have been verified. There is a fifth deposit for this month which I think is from the previous month and I am not sure how that will come into play with all of this, but even that debited or credited will only swing the balance about $150.00 in either direction which is still not enough to come close.
....correction - the 5th deposit I mention above hit my OPERATING CKG at my credit union in the same month. It did not affect my "Etsy Bank", balance for that month. So it was a deposit from the previous month but remained there as it should for the "Etsy Bank", purposes, which is good in one regard, but still leaves me questioning where this weird outage is located. According to the statement CSV I do not see any Type labeled payment as if Etsy charged us for anything, and again it would have had to be substantial if it did...hmm...
@@christopheralmaraz8919 I would love to take a look at your data if you don't mind to try and figure out what is going on. Hopefully it will help you and others! Would you mind emailing me at Sarah@SmallBusinessSarah.com? Thanks!
@@SmallBusinessSarah I am sending a message over now. To calm the drama a bit...I think I got it figured out. I did have to manual enter that second half of data (credits) for some reason to get my figures though.
Hi Sarah, thank you so much for the video tutorials. I subscribed as soon as I watched your first video. I am trying to figure out the expenses for my wife’s Etsy shop all the way back to 2017, since we got a 1099 for that year. I am trying to follow along, but I am stuck right at the beginning, trying to get the beginning balance, by going to the last day of the previous month. However, the entire valance column is showing as “--", no number is displayed. Do you know what should the beginning balance be in this case, when no number is displayed?
Thank you in advance
Hi Juan, back in 2017 Etsy wasn't using the Payment Account it is currently using, or at least not the same way, so that's why some of the statement information is incomplete. The switch to the current system happened in late 2018. In 2017 the listing, transaction, marketing, and shipping fees were charged in a monthly Etsy bill. The deposits were only net any refunds and the order processing fee. The Etsy Orders CSV file will show you the order processing fee. So as long as you have the Etsy bill recorded in your bookkeeping, you have already captured most of the Etsy fee expenses. If it were me I would probably just post one 12/31/17 journal entry to pull out the order processing fees, refunds, and sales tax from the deposits. I hope that helps!
Sarah Korhnak thank you 🙏 so much. You are the best .
Love your very detailed videos. I tried the Etsy Tool but it dosent balance with my Etsy statement balance....not sure what I'm doing wrong. Please help!
I would double check the beginning or ending balance and make sure there is not a deposit in transit. (A deposit that Etsy says went to your bank, but didn't arrive in your bank account until the next month.) I would also check for charges Etsy might have made to your checking account for negative Etsy balances. I would also try the manual method to see what numbers you come up with that way.
You are amazing. Thank you
Happy to help!
Thank you SO much for this! I just completed the process for my January 2019 fees and I am noticing that my ending balance in my Etsy Bank register is off by exactly the amount of my starting balance. All of my charges and deposits seem to be there, so I'm not sure what I did wrong. Any advice?
Hi Jess, sometimes there is a deposit in transit that can affect the beginning balance. For example, if the Etsy payment account says that your ending balance is zero, and they sent $100 to your bank on 12/31, but the $100 didn't arrive in your bank account until January, then you have a deposit in transit. $100 was your true Etsy balance as of 12/31, not $0. If that doesn't solve your problem, let me know!
@@SmallBusinessSarah Thank you for the super quick reply! I took a break for a few hours and came back, and suddenly my ending balance in Quickbooks matched my ending balance in Etsy, so I think I was just looking at the wrong number somehow when I wrote my comment. Whoops!
@@kyokyo87 Glad it worked out!
I absolutely love your app. thank you! my question is. my total money coming in (sales+shipping income) does not match my 1099 for that particular month. I was the same for January but all the other months are off. Can you tell me what I am missing? Aren't they supposed to match?
It should only be slight differences, that should be up a little one month, then maybe down a little the next month, so in total, super close. What I have found is that the 1099 figures are drawn from the Payment Sales report, found in the same place as the Orders CSV file. This report will often have a timing difference between what sales are included there and what sales are included on the Statement CSV file we use from the shop payment account. For example, the Shop Payment Account Statement may show a sale on 8/31 at 11:55 pm, but the Payment Sales report will show that same sale on 9/1. I'm not sure why the two reports can't agree, I think it's a time zone issue! For my app to work, I have to use the statement CSV file in order to get the fees and in order to be able to tie to the ending Etsy Bank Balance. If I used the other report, I would not tie to the ending Etsy Bank balance, and that's our check that everything has been done properly. Long story short, you are accurately capturing your shop fees and sales, but the 1099 numbers are pulled from a different report that has a slight timing difference. Hope that helps!
@@SmallBusinessSarah Hi Sarah! Several of us are sharing the love on Reddit. I am also off by $50 for the year with my 1099. I assume that is not great enough to be a problem. However, my P&L shows my refunds as a negative in Income in QB. To match the Etsy 1099, shouldn't that be a positive under Income and then again as a negative under expenses? Otherwise, I am now $543 off from the 1099. I assume that is a problem?
Thank you so much for this helpful video. Just a couple questions, nothing showed up in the sales tax column in my file, including my home state. Also, there were a few charges on our credit card by Etsy, not sure what it's for and where I should put that. Using the Etsy app, the debit etsy bank number did not equal what was actually deposited. Can you please help me?
If your state is a marketplace facilitator tax state (most are now) then a zero will most likely appear in the sales tax column even for sales made in your state. Charges to your card from Etsy can either be purchases you made from another Etsy shop, or they could be Etsy crediting your account when your Etsy balance goes negative. If it's the former, then categorize the expense as usual. If it's the latter, then categorize the Etsy charge to Etsy bank. I believe that is covered in the video. The Debit to Etsy Bank may not agree to the deposits.
@@SmallBusinessSarah got it. I think I got it figured out now. Thank you so much!
I love this method but I am using an older version of QuickBooks Pro so I don't have bank feeds. And with QuickBooks Pro you can't add the Etsy deposits like the video shows. Any tips on how to enter these deposits in QuickBooks Pro so that they are in the right accounts before I do the general journal entry?
Hi Christine, QuickBooks Pro is a desktop version, and I am really only familiar with QuickBooks Online versions. However, I do know of some people on desktop able to use this method. Maybe they have to set-up Etsy Bank as a receivable, not a bank account? Can't remember. So sorry!
This is really helpful! How do you reconcile your bank account each month when you have your income flowing into a "bank" that isn't generating a monthly statement and isn't your actual checking account? Would it make more sense to utilize Undeposited Funds and do the entry first, then match the transactions - which would then move the funds to the operating checking account?
Hi Adelyn, this is a common question. But when we categorize our Etsy deposits to Etsy Bank, it does not affect the checking balance. The checking account balance still increases as a result of the deposit. Take a look at your checking register to see that first hand. Maybe it help to label Etsy Bank as Etsy Holding, or Etsy Receivable. I promise you this all works together, checking account is fine, no need for transfers to checking or anything!
@@SmallBusinessSarah Ah, I see! Thank-you!
Thanks so much for this helpful video! I couldn’t figure out if i did something wrong because i just did my last two months and somehow around $7 off for each months. i think i checked everything. Any advice? Thank you
I would double check your beginning balance. Then I would make sure that Etsy did not charge your account for a negative balance. These charges also should be categorized to Etsy Bank. The third option would be to calculate the numbers yourself with the CSV file and see if that reveals a difference somewhere. Other than that I would probably just plug the $7 since it is so small, in order to balance.
After I complete the Journal entry, do I need to enter every single individual transaction from the Etsy CSV into Quickbooks? Or is One Journal Entry a month good enough?
No need to enter in every transaction. The journal entry takes care of everything! So much faster!
I have 3 questions: If I use this method, will I not have sales receipts for the individual sales? So I cannot find what etsy sales were made by looking at the sales receipts? Also, is your app able to work on Macs? and 3rd, If I have no orders during one month and there is no data in the order csv, how do I proceed in your new app?
I have a mac and her app worked perfect.
Hi Martha, my method does not use sales receipts because once your shop starts really selling, that will be impossible to keep up with! Yes, the app works for Macs. The app will still calculate the fees and the entry as normal, even without sales.
The "app" is all done through a web browser, so it's more of a web tool than an app IMO :) You don't need to download any application, which adds to its convenience!
@@SmallBusinessSarah Back again! Yes your app is helpful for getting the info, however, my client wants to easily access sales by venue and if the etsy sales are entered via general journal instead of sales receipts, that info is not as easily accessed. In fact I find it nearly impossible to ferret out what the etsy sales have been.
@@marthareed6699 earlier this year QB came out with an integration called Sync with Etsy that brings in individual transactions. I have a video about it. It may solve your problem, or it may not. What your clue wants may not be possible without a lot of manual and time consuming work.
I'm confused on the shipping expenses. I imported your COA. It breaks down shipping expense as (shipping, freight and delivery) and the shipping supplies as (supplies) but on your JE example you have (shipping fees) which is not on the COA. Please bear with me as I am VERY new at this and apologize if this is a stupid question. Should I create another COA for shipping fees?
No need, you can use the Shipping, Freight and delivery account. Same thing! I just must have created this video with an account where I didn't pre-load my usual chart of accounts, and made them up on the fly!
Thank you so much for this! I'm working on understanding it all, but running across this issue -When I added the bank deposits from Etsy into my Etsy bank they show up as payments and not deposits. I can't figure out how to change this and of course it is messing up my numbers! Anyone know what I did wrong?
Nothing is wrong! In the Etsy bank register, the deposits are going to show up in the payments column, I know, it's confusing! So the balance will appear negative, until you post your entry at the end of the month! Just see the process through!
Thank you for this! Etsy makes things pretty difficult. Question about Etsy Tax, they keep and remit sales tax, so why do you include the Etsy sales tax in your entry if you are not remitting it? Wouldn't that technically be an expense since Etsy collects it and then minuses it from the total they pay out in deposits?
I made this video a long time ago before most states had the marketplace facilitator tax law. Unless you are in MO, your Sales Tax Payable amount from Etsy sales should always be zero.
Hi Sarah - Doesn't Etsy collect and pay ALL of the sales taxes from every state - even my own? California.
There are three states that haven't adopted a marketplace facilitator tax law, so Etsy does not collect for them, but as long as you are not a resident, that has no effect on you. You are right that Etsy does collect for California.
Hi Sarah, I am doing a journal entry and the Debit Etsy Bank is a '-338' for me and as you know a negative debit is a positive credit, what do I do in such a case?
It sounds like you should put the 338 in the credit column. You can test if you did everything right when you go to compare the Etsy balance at the end.
Sarah - quick question as I start to go through the process of recording Etsy Sales and Fees. I have 3 Etsy shops. Do I need to set up 3 Etsy Banks in Quickbooks? I'm guessing that's the only way to do it, but wanted to confirm.
Hi Jane, here's how I usually do it. I usually use 1 Etsy Bank account, that way I don't have to worry to which shop each deposit belongs. But then, I set up revenue and expense accounts for each shop. That way I get a clear picture in my Profit & Loss of how each shop is doing. When I'm comparing Etsy Bank in QB to Etsy, I just need to add together the ending Etsy balances of all the shops. Shoot me an email if you have more questions or if you would like me to send you a screenshot of an example.
Sarah Korhnak Thanks that is helpful. Could you send a screen shot or two? But let me see if I understand, I feed the three csv files from Etsy into a single Etsy Bank. And the beginning balance is the sum of the three shops? I don’t think I still quite get it.
Thank you so much for this video and all its 'segments' - so helpful! Quick question: When ETSY charges a refund to my Credit card, where does that get calculated to in the JE? The credit card? Uugh. My brain hurts.
If Etsy charges your credit card that charge, when it hits your bank feed, should also be categorized to Etsy Bank.
Hi Sarah, two quick questions on the The Etsy Entry App results. I have an Etsy subscription fee of $10 in my monthly statement but it was not picked up in the results shown on your app, has line item debit subscription fee, however it shows zero; Also, am wondering where the Debit Order Processing Fee amount on the app results comes from? it is no where in the monthly statement or monthly orders CSVs downloaded from Etsy. Thanks!!
That's interesting that the subscription fee is not picking up for you, I haven't encountered a similar problem before. I'll need to look into that. In regard to the Order Processing fee, I think the video will show you how the app calculates that. In the statements CSV file, the sales are less fees (the middle column). The fees in the statement are the Order Processing fees, and then the app also adjusts for for any refunds.
@@SmallBusinessSarah Thanks Sarah. I like your bookkeeping teaching and the fact that you yourself are an e-commerce business owner. I booked a call with you to discuss your monthly bookkeeping service :). Looking forward to it!
The app tool has worked well for me on a few months but on one month in particular I can't get QB to reconcile the month. I seem to be off by the amount that equals the NET refund amount for a single refund. My journal entry matches the exported numbers but something isn't adding up for me...
Did Etsy charge your bank account for the amount of the refund (no balance to pull from). If so, that charge from Etsy should also be categorized to Etsy Bank. The next thing to do would be to manually sort the CSV file like in the video, and see if that reveals an error. Sometimes if Etsy changes their wording of a charge, the app won't pick it up, and has to be updated. Let me know if that's the case!
Hi Sarah! For some reason it doesn't let me edit the beginning balance (like you did at 6:41). It just shows "Balance -XX.XX" but theres no place to add it or date to put. Do you know why?
Actually it might be because i added stuff into the Etsy Bank before i put a beginning balance huh? Is there an easy way to fix this?
I tend to fix things that I can't fix through regular QB channels with journal entries.
I'm back again, lol! I'm wondering if you would be able to do something like this for eBay too.. the information that Etsy provides is great and all in 2 easy to find files.. but eBay? not so much. I am having a hard time figuring out what my actual numbers are. :(
Hi Dawn! I've added your idea to my to do list, but it will probably take me a bit to get to it. This is such a busy time of year for me! But I'm so glad you suggested it, and will do my best to get to it soon!
@@SmallBusinessSarah thanks! I'm mostly using Excel now, I was using QuickBooks but I don't have the training to use it correctly and my bus is so small that the cost doesn't make sense for me just yet. But I use the methods you shared for calculating "sales for entry" for Etsy and that is very helpful.
I'm in Mexico and I can't use EtsyPay, have to use Paypal. Any refund I have to do it through PP so unless I cancel the order afterwards, my Etsy account would not reflect that. To be honest the bookkeepiing almost causes more stress than the benefit of selling on Etsy. About your app, maybe it would be possible to add an option for people outside the US? I have no idea what to do with these sales taxes.
At some point I may be able to update the app for international sellers. I recently learned that sales tax for many states shows up in international seller's reports. International sellers should ignore those sales tax amounts. To make the app ignore the sales tax, select a state in which you did not have any sales that month. Most sellers make few sales to states like Alaska, Hawaii, Alabama, or Rhode Island. So I would try that.
@@SmallBusinessSarah Thank you so much, but I also discovered the csv files are quite useless to me because payments are made through Paypal. Thus Etsy does not record the sales amounts . The only thing recorded in the csv files are the listing/adversing fees.
@@deafdogdesign I'm sorry but I don't have any tutorials on how to accurately record Etsy sales and fees for someone in your situation.
@@SmallBusinessSarah Actually I talked to An accountant and she told me the basis for taxes in Mexico is ones bank account. So I probably an get away with just adding up all deposits from PayPal and enter my product cost and be done with it.
How do you track COGS or inventory? Is it a separate entry later or can you integrate within this bulk entry?
I don't recommend Etsy sellers try to track inventory in QB (or any software). It can be very difficult to do (unless you sell supplies) and time consuming. And it's not necessary. When you purchase raw materials, categorize those purchases to Cost of Goods Sold. This is in accordance with the cash basis of accounting (what most small businesses are). You will have to do an end of year inventory count for tax purposes, like all businesses.
@@SmallBusinessSarah Thank you, Sarah. That clears up my confusion.
Hi, this is helpful but I have one (complicated) question: We sell at retail through Etsy, but we also have non-Etsy wholesale customers. We make greeting cards, and have over 100 products. For every sale, we create a sales receipt or invoice in quickbooks, so we can track what cards are our best sellers, and the EOY costs of goods sold and EOY inventory.
QUESTION: To use your method, should we NOT create sales receipts in quickbooks for each of our Etsy sales??? Just input gross Etsy sales figures into quieckbooks? Or do we need to create duplicate "products" for each item, to show which are Etsy sales of product income, and which are Wholesale sales of product income?
I searched for and watched your videos because this business of Etsy collected sales tax for us in so many states has gotten so complicated, or so it seems. But you're basically saying that since Etsy tax collected and paid is pass through, we don't need to really track it in any way!
I'll answer the easy part first! If Etsy is the one collecting and remitting the sales tax, then no, you don't need to worry about it. As to the rest, as your business grows, creating sales receipts for each product will become far too time-consuming. So that's one thing I love about my method, its' fast and accurate. Generally, for handmade sellers I don't recommend tracking inventory or COGS per each item in their accounting program. That also tends to create a lot of extra effort. In general, I recommend that all purchases of raw materials be categorized to COGS, and then at the end of the year doing an inventory count of items on hand. These are just my recommendations, if you like your system, stick with it!
@@SmallBusinessSarah Thank you! Is the theory that if any particular state comes after us to prove we paid sales tax on an Etsy purchase, we just produce our Etsy sales order, showing that Etsy paid the tax? I know, we are really small fry here on Etsy, but I like to think about the worst case scenario.
@@donnahaggarty-robbins5555 If your state has passed a Marketplace Facilitator Tax Law (most have) then it becomes Etsy's responsibility to collect and remit tax, not yours. So I don't think a sales tax examiner could have any issue at all related to sales you made on Etsy. You may need to check if your state still wants you to submit a zero return. If you made sales outside of Etsy, then that sales tax would be on you!
@@SmallBusinessSarah Thank you!!!!
Is this applicable to QBDT? and is it possible to share these monthly reports from Etsy by emailing them to the bookkeeper? Are they printable or share-able?
Hi Martha, this method will work with QBDT. And yes, you can give them to your bookkeeper. Just download the CSV files each month and email them to your bookkeeper.
How do we account for the sales tax that etsy collects on our behalf? I'm sure that is in our gross sales (1099-k) correct? I have followed your instructions but on the sold orders sales tax column its zeros. I'm $517 short from what my 1099-k shows on my tax info on etsy. Would you assume that its the sales tax? Everything else is accounted for and correct.
Hi Jennifer, I just recorded a video that will walk you through agreeing your Profit & Loss to the 1099. Hopefully it answers all of your questions! ruclips.net/video/hMc7W_rHsro/видео.html
Sarah Korhnak thank you so much for taking the time to make a video. I watched it and it all made so much sense. I appreciate it so much!!
Hi. I've been using for the past year. It's been so helpful. However, I've tried this month three different browsers to get the page on your website to load to use the tool but have been unsuccessful. Error 404 after I upload for it to calculate. And now I can't get the page to load at all. Has anything changed? Thanks
Yes, Etsy changed their shop finances section, so now it's even easier to come up with the monthly journal entry. Here's the video on how to do that.
Sarah - quick question- so I save my files as .cvs files to make app work? am assuming so
Yes, the files have to be in CSV file format in order for the app to work. If you just hit download from Etsy, the files will automatically go in your download folder, in the correct format. No need to open them or change anything.
@@SmallBusinessSarah thanks
does this app work across the US only? I'm trying but this app showing only 0 amount and sample of JE only. I'm following same way as you explained in video. Can you plz help?
Unfortunately yes, it is mostly for U.S. sellers. You should be able to manually calculate your amounts with the method I outline. Sorry!