Simplify Your Finances with Etsy Invoices for Accounting

Etsy invoices for Accounting

hi everyone i just finished doing my monthly etsy bookkeeping and it's not fun it's a nightmare and etsy puts things in so many weird places the tracking down the information can be very difficult now mine is a little more complicated on top of that because i have a website and i have income coming in from like ads on youtube and classes that i have on teachable and things like that so there's multiple streams of income that i have to keep track of but for this video i just want to show you where to find things on etsy because if you use an accountant or you're trying to figure this out yourself this is going to be confusing and i have heard from many people that their accountants are very confused by that so let's go into an actual an article that i wrote that will take you through every single thing and you should probably bookmark the article because you're going to need it but let's go ahead and look at that and i'll show you what i'm talking about this is my artisan shopper blog it's artisanshopper.com it's a bonus for the people who are in my eshop success program and they're all listed in this directory of different handmade artisan shops but there's also a lot of etsy and home-based business articles on there so you should go and check it out if you haven't seen it but what we're going to do is look at the article about etsy bookkeeping now if you go to this blog and just search for bookkeeping this will come up it's called etsy bookkeeping and where to find the tax info you need and i put this together once because i need to keep track of this information too and i used to use godaddy bookkeeping but they got rid of the program and the only thing i could do was to try to find a different program that would incorporate everything that i needed i couldn't find anything so i just put spreadsheets for myself together i have spreadsheets for myself and i think that i have them actually linked here somewhere yeah uh well maybe not yeah it's this free etsy bookkeeping spreadsheet if you go here and you download it there is a list at the top it tells you exactly where everything is so you need to go to the etsy sold orders you know spreadsheet and use column d put that in here this is a different spreadsheet take that information in column z and put it in here if you use that spreadsheet in conjunction with this article you'll probably be able to figure it out but i'm going to go to the top of this and just show you real quick we're going to go through where all this stuff is so the first thing you'll need to do bookkeeping and i do this twice a month just to keep up with it because i do use my own spreadsheets i just get all the information put it in and then at the end of the year i know that it's right because i've put it in myself i've double checked everything and i don't have to worry about making sure that a program has imported everything correctly so it might seem like it takes a little bit more time to do it yourself but it really doesn't at the end of the year you don't have anything to double check all right so in your shop dashboard this is the first place you need to go to get this process started in your shop dashboard we're going to go to i'm going to open this up we're going to go to settings and this is a video that's in the article you can go watch this go to options and download data now here there is an option to download everything in your shop if you want to back your shop up but you can also go down to the spreadsheets etsy has four different spreadsheets that it provides there really are two that you need for the basic information about the orders that you got and the discounts and all that kind of stuff and again the article goes over all this but what you want to get is the orders spreadsheet and the etsy payment sales spreadsheet and those two basically will give you all the information you need now you can get this by year or by month if you want to do it month by month the way that i do or just leave the month blank and click on the year to get the whole year there are four spreadsheets those you could get all of them but really like i said the order form is the one that you want and the etsy payment sales form those are the two that have most of the information that you'll need for just your basic expenses and income all right so on the orders form i'm going to leave this off the order item form is orders but it has every single thing on it so someone ordered 10 things it's going to have a separate line for each that's a lot of information to go through so um now this it says this form also has a list of the vat taxes received so you might need to use that if you have anything to do with that i don't know how etsy handles that in the us they don't use sales tax as a income and that's something that bookkeepers like accountants don't seem to understand etsy will say we collected this much sales tax but it never shows up anywhere on the spreadsheets for us because it's not income for us they pay it themselves so you don't need to worry about that and accountants will ask you about that because they're looking for the debit as opposed to just the credit for it and there is no credit or debit because we never see that money it's a strange system but it's a marketplace system so you just tell them it's a marketplace law for the marketplaces have to you know collect and remit that's really the one thing that's going to throw them well not only the one thing all right so let's go into the orders form the orders form has like one line per order so it'll have the customer's name the data was placed the total value and all that kind of stuff and the things that you need to pay attention to in this are column q v and w and then maybe the name of the customer and the date if you want to keep track of that kind of stuff but this this is stuff that again it's all in the spreadsheet that i have in this article i'll put the link to the article in the description um but this this order form gives you basically all of the income and it'll tell you the if you if a coupon was used you have to keep track of that on this forum i'm trying to remember because i just went through this myself i the things i keep out of this form are the date of the order the name of the person i keep their first name just so i can cross-reference it if i need to the total value any discounts that were given um i think that might be it any postage i think the the amount of the postage if the customer paid for postage that counts as income so you have to use that as part of your income and that's on this form all right in the ex the expenses are the discounts and then the payment processing fee but that is now included in the finances page so you don't really have to keep track of the payment processing fee here because it's added in to the finances i'll show you that in a minute but those are the things that you would need to keep track of from that on the orders form all right the etsy direct checkout payments form is the other one that you're going to need and for that really you only need to look at column z and the the amount of any refunds like if you got if you sent a customer a partial refund or something or whatever reason you canceled the order it's going to be in column z all the other stuff is not really necessary because you've already taken care of all this with the orders form okay but column z will be the one thing that you need to look at because that doesn't show up on the orders form it's it it's weird the way they do it the etsy deposits form just shows the deposits as they went into your bank and so if you want to reconcile make sure they sent you all your money that's where you would look at that now the other expenses that are not on the csv forms are going to show up in the finance section of your shop and i will look at that right now let me go and find that for you okay if you go to finances and monthly statements and if you go to your payment account you can scroll down to the bottom to see a little button that says look at your monthly statements but this monthly statements will let you choose whatever month you want for the year you can find you know all of the basically the sales that you made in the fees and what i do is i look at the spreadsheets i find the things based on the columns that i have on the spreadsheets it tells me exactly which spreadsheet and which column to go to to get those numbers i fill them in and then i come over here to find out what etsy says my fees were how much my sales were and that kind of thing so the fees well this is for september so this is an ongoing month so so far like at the end of the month it'll tell you how much you you had in fees right so i would take this now the fees include transaction fees and the credit card processing fees which is good because that's basically all the fees that you have as far as the 6.5 percent goes so listing fees transaction fees processing fees it's all included in this you can just take this figure and stick it into your spreadsheet where it says how many fees did you know how much did i pay in fees for this month all right then for the shipping if you use etsy shipping labels it'll tell you exactly how much you spent there that's an expense that you have to put that in just like if a customer pays you for the label that's a that's income so you have to put that in and then you take out the expenses when you pay for the label that's an expense all right marketing includes offsite ads and etsy ads luckily they haven't caught me for any ads this month and that's going to be right here and this is the sales that you've made so far this month and i just do this once a month i'll go in at the end of the month i pull all of my reports because i have three etsy shops so i have to pull all the files all the spreadsheets and i have to get all this information if you put that into one spreadsheet it's pretty much there and it's ready to go at the end of the year when you have to reconcile everything i can't think of anything else specifically but just download that spreadsheet if you go to the article you'll get the spreadsheet it will tell you exactly what column and which spreadsheet to look at to find this information i promise you it's going to make your life a lot easier but don't forget that this is just etsy you still have to take into account all of your expenses like the cost of your goods you have to take in any you know software that you paid for did you have a subscription to marmalade do you have an adobe subscription it whatever you use to spend money for your business that's an expense and you need to keep track of that so that's separate from this this is just the etsy portion of it and if you have money coming in from a website that's a separate issue so you know this is a piece of the bookkeeping but the etsy piece can be very confusing so if you download that spreadsheet and look in those places that i showed you you should be able to find all the information that you need to take care of the etsy part of reconciling it for your bookkeeping leave me any questions and i will talk to you later