Running an Etsy shop is a meaningful business venture for many creatives. You get to share your creations with others and get paid. But for most Etsy shop owners, the most dreaded part of the job is bookkeeping. It's even scarier than marketing and social media. That's why I put together this Ultimate Guide to Etsy Bookkeeping.
As an accountant, my strength is teaching others how to DIY their bookkeeping so they have a solid understanding of their financial situation. These videos will show you what you need to do to get your bookkeeping up and running quickly so that you can get back to your favorite parts of being an Etsy seller. (This page contains affiliate links. Please see my disclosures for more information. These videos are for informational purposes only and do not constitute accounting or tax advice.)
If you're avoiding your bookkeeping because you don't know where to start, consider this your opportunity to change that. If you click the video below, you'll be taken to a playlist that will guide you through how to set up and use the system I recommend for Etsy shop owners.
I recommend QuickBooks Online Simple Start because it has all the features you need to do your small business bookkeeping, at an affordable price. QuickBooks Online Simple Start is easy to use, yet it is powerful! (I do not recommend using QuickBooks Self-Employed. It’s missing a few important features and saves you very little in monthly fees.)
Etsy Bookkeeping with QuickBooks Online
This playlist will give you the confidence you need to set up your Etsy records in QuickBooks Online.
Here are the videos included in my Ultimate Guide to Etsy Bookkeeping playlist:
- Bookkeeping for Your Etsy Shop (Part 1)
- Introduction to Bookkeeping for Etsy
- Select the Ideal Start Date for Your Bookkeeping (Part 2.1)
- When you set up your bookkeeping, you need to have a firm start date. This video will walk you through how to determine the best option for you.
- How to Connect Your Financial Accounts in QuickBooks Online (Part 2.2)
- This video will walk you through the steps of connecting your financial accounts so you can save time by not having to manually enter every transaction.
- Etsy Sellers Customize Your Chart of Accounts in QuickBooks (Part 3.1)
- The default chart of accounts in QuickBooks has very few accounts you would actually use as an Etsy shop owner! Learn how to upload a custom chart of accounts into QuickBooks Online and get a FREE csv file for your business.
- QuickBooks Online Bank Feed Basic Walkthrough (Part 3.2)
- This video shows how to navigate the QuickBooks Online bank feed.
- How to Categorize Expenses in QuickBooks Etsy Bookkeeping (Part 4)
- Learn how to categorize your Etsy shop expenses in QuickBooks.
- Best Way to Record Your Etsy Sales and Fees in QuickBooks (Part 5.1)
- This video walks you through what reports and numbers you need from your Etsy shop manager and how to use these numbers to accurately report Etsy sales and fees in Quickbooks.
- Adding Vendors to Transactions in QuickBooks (Part 6.1)
- It's really easy to add vendors in QuickBooks, but many people leave this field blank. If you don't fill in a vendor, you will not have access to this reporting capability.
- How to Add Checks and Match Checks in QuickBooks Online (Part 6.2)
- Entering checks when you write them will more accurately reflect your current cash position. This video will show you how to do this quickly and easily.
- How to Record Owner Payments & Owner Deposits in QuickBooks (Part 6.3)
- As a small business owner, when you transfer money from your business checking account to your personal account, this type of transaction is called an Owner's Draw.
- How to Record Sales Tax Payable and Estimated Taxes in QuickBooks (Part 6.4)
- There are specific ways to record collection and payment of sales tax, as well as payment of estimated taxes to the state and IRS. As this video demonstrates, your Balance Sheet will show you how much tax you have collected and therefore how much you owe.
- How to Record Transfers Between Accounts in QuickBooks (Part 6.5)
- Transfers between your financial accounts in QuickBooks Online will occur frequently. Learn how to record these transfers properly.
- How to Handle Duplicate Transactions in QuickBooks (Part 6.6)
- Occasionally a QuickBooks glitch will result in duplicate transactions. Learn a quick and easy fix to solve this problem and prevent a bookkeeping mess!
- How to Record PayPay Transactions in QuickBooks (Part 6.7)
- PayPal transactions can be tricky in QuickBooks Online! Learn how to record several different types of transactions correctly so that your PayPal account and your Checking account balance at the end of the month. This video covers purchases through PayPal that are processed through your credit card or checking account, purchases processed with your PayPal balance, and deposit transactions.
- How to Record the Purchase of Raw Materials or Inventory (Part 6.8)
- Learn my recommended bookkeeping best practices for raw materials.
- Exclude Transactions Prior to QB Start Date (Part 7.1)
- This video teaches you how to exclude transactions you might have uploaded into QuickBooks that are prior to the bookkeeping start date you selected in Part 2 Video 1.
- Start with the Right Opening Balance Equity in QuickBooks (Part 7.2)
- This video in particular teaches you how to make sure each financial account has the right opening balance equity amount. If your Opening Balance or starting balance number is off, everything else is going to be wrong too!
- How to Upload Transactions into QuickBooks Beyond 90 Days (Part 7.3)
- If you find yourself needing to bulk import lots of old transactions, it's actually pretty easy. This video will show you what to do so you don't miss any of those old transactions.
- Record Transactions Paid for with Non Biz-Money-Journal Entry (Part 8.1)
- If you accidentally use your personal credit card or debit card to make a business purchase, you need to track these items in your business bookkeeping, otherwise you might forget about them come tax time! A journal entry is one method of recording these types of transactions.
- Record Transactions Paid for with Personal Money (Part 8.2)
- If you used your personal credit card or debit card to make business purchases before you opened a dedicated business account, you need to account for these purchases in QuickBooks. Uploading this transactions into QuickBooks is one method you can use to accomplish this.
- How to do Your Bank Reconciliation in QuickBooks (Part 9.1)
- It's very important to reconcile all of your financial accounts at the end of each month including your bank accounts, credit cards, and PayPal accounts. This video will show you how to reconcile quickly and easily.
- Common Bank Reconciliation Issues and How to Solve Them 9 (Part 9.2)
- Most of the time your bank reconciliations in QuickBooks Online go smoothly. Every once in awhile, something is wrong. This video will highlight common bank reconciliation issues you might encounter and how to solve them.
- Creating and Analyzing Reports in QuickBooks Online (Part 10)
- Once you have categorized all of your transactions in QuickBooks, you are ready to generate some reports. Learn how to quickly and easily run profit & loss or balance sheet.
If you have a question about material presented in one of the videos, be sure to ask it in the comments section on YouTube. I'll respond as quickly as I can.
For some people, once they learn the basics of how to DIY their Etsy bookkeeping, they really enjoy the process. For others, DIY bookkeeping turns out not to be a great fit. If you find yourself in the latter category, then you might want to consider my monthly bookkeeping services. I help large and small business owners alike!
Either way, don't put off your bookkeeping any longer!