How to do Etsy Bookkeeping for your Shop
It’s tax time again, if you run an Etsy Shop, you may be struggling with how to do your bookkeeping. Here are instructions on how to download the file with all your sales data from Etsy and also a brief look at how to do your shop bookkeeping.
To find out your GROSS SALES for the year, you will need to download a CSV or spreadsheet type file to import into Google Sheets or Microsoft Excel or Accounting Software. Here is how you do that.
Shop Settings > Options > Download Data >
CSV Type = Orders
Month – do not select anything you want to pull the entire year
Year – 2015 (select the year from the drop box that you would like to pull information for)
Download the file and open it in a spreadsheet application.
The ORDER Value and SHIPPING columns should be totaled, this will give you your gross income or total money collected minus any coupons. Sales tax columns shows any sales tax collected from orders.
INCOME
Order Value
Shipping Collected
= Order Total
EXPENSES
From each month’s Etsy billing page, you will need to record:
Etsy Listing Fee
Etsy Transaction Fee
Etsy Renew Fees
Etsy Ads (Promoted Listings)
Shipping Cost
Etsy Payment Processing Fee (Credit Cards) – From the exported data Orders spreadsheet total the column Card Processing Fee to know how much Etsy deducted for credit card processing.
OTHER EXPENSES
Cost of Goods Sold (COGS) This is all materials purchased to make products. Anything that went into the creation of your item.
Supplies – Things not related to making products, like printer ink, shipping supplies, packaging materials.
Equipment – Large purchases like machinery or computers that you used for your business.
Office Expense – Things that do not fit into other categories.
Entertainment – Meals with clients.
Other – Telephone, Internet Access Fees, Cell Phone
Once you get your expenses together, deduct those from sales & shipping collected to find your net profit for the year. You will then pay taxes based on this NET profit. You should always seek the advice and skills of a certified public accountant or tax specialist when calculating business income and expense to verify that your calculations are accurate.
