Create and Manage Etsy Invoices for Technical Support Effortlessly

Etsy invoices for Technical Support

when it comes to running a successful etsy shop the key is in the numbers whether this is your stats but also what we're going to talk about in this video is your monthly finances because this is one of the biggest differences between having a hobby and running a business it's all down to the intention behind it when you have a hobby you're doing it just for a bit of fun but when you are running a successful business it is all about the profit the money that you are making which obviously keeps you in business so in this video i want to run through what your etsy payment statement looks like what it will include how to understand that really muddled csv file everything you need to successfully understand your finances keep a track of your finances for bookkeeping and your account and generally make sure that you are making a profit from your etsy shop so let's jump right in within your etsy shop to find your monthly statement which is obviously your income and your expenses involved with your etsy platform specifically so you will have others outside of these such as material costs software that sort of thing but when it comes to your etsy income and expenses this is where you can find this and to find this you just go to finances monthly statements and this is where you will find it so in here you can obviously select the month whether it's the current month the current month will always be the default to what is shown and but you can obviously go back to any of the months and any of the years that you so wish um and what you'll want to do is obviously you can this is the default when you log in this is kind of your big numbers like the overview numbers but it's good to know exactly what's going on what those numbers are made up of to expand the categories so that you can see exactly like those numbers broken down so what you can see here very nicely is your net profit this is the money that etsy will pay out into your bank account and then underneath that you will see the sales the actual income that came in so this top number is your total sales income that is how much you have made through the sales that you've made you'll notice underneath though this total sales which obviously tells you how many sales you had within that month and it will then give you usually a slightly higher number this is because this number also includes the data from the sales tax or that that the customer paid directly through to etsy so this isn't your income etsy collect that on basically your customers behalf and so that's always why it's usually higher is because there is that sales tax or vat um on top and then underneath you will also see those detailed further you can see sales tax and in terms of my shop this is usually like american customers and and then that paid by buyer this is usually uk customers or eu customers so obviously when you look at those figures altogether that's how that minus these is how you get your income number so this is the actual kind of price that you have put on the product that is what you see and then obviously the extras are what is added on by etsy moving then on to fees this is usually the one that complicates a lot of people because they go oh my goodness how much did etsy take now in the grand scheme of things it's actually very minimal in terms of any online marketplace or even when you have your own website which is one of the reasons i recommend starting on etsy because the fees are so low all the costs are so low compared to anything else out there and but of course just as they will and because they have to run their software you know potentially you are tapping into their existing audience you do have fees to pay and depending on where you are in the world you may have more or less fees and if you want a specific video on what each fee is the amount and all that sort of thing i will link a video up above and also in the description which is all about like exactly how much the fees are and things and but very quickly listing fees obviously this is when you uh list an item and i haven't paid one of those uh this month i have a bunch of free listings which if you are interested in opening a shop in the future definitely again check out the link in the description and where you can get 40 free listings if you are opening your shop so i have a bunch of those and so i've been not paying for listing fees which is lovely um transaction fees this is obviously when you sell something you pay um you know a certain fee for the transaction processing fees that's all to do with the payment processing so you can see that's obviously a chunk as well regulatory operating fee this is quite a new one and super super tiny but again it's just another fee to be aware of um and then vat on seller fees so this isn't like my vat as a company this is as etsy is obviously fat registered this is the vat that i pay on the rest of the fees okay so um all this is detailed down in the csv file which we will go through in a minute and but this is kind of just the oh this is just the overall break down here so you can see this is how much my total fees were and and then obviously that divided by that is the profit um and then you will also see below and any other kind of potentially well basically expenses that you have within the etsy platform so if you're running ads whether that is on etsy ads or off etsy ads whether that is uh voluntarily or compulsory you will see all those ad costs down here you can see i'm not running any ads at the moment um and then delivery obviously if you buy any etsy labels if you have physical products and any postage labels that you buy will obviously be here and then any tax all that details will be here so the one thing you're going to want to do every month in terms of your bookkeeping is take a screenshot of these expanded for your files and because there is no kind of statement if you like like a a pdf of course you can print this as a pdf and but this is the type of thing that you're going to want to screenshot or print as a pdf and a copy for your account or bookkeeping because it has obviously your income and then it has the fees and that's what you need so obviously you're going to need to always uh you know track this in terms of in out and then what you're left over in terms of being a lot more documented with your accounts what you're also going to want to download every month is your fat statement so this is the details of your fees and obviously it then details the vat that you've paid and if you're that registered obviously you will need everything that you can to prove that you've already paid that potentially claim back your vat if you're in the uk and so that is a pdf that you're going to want to download and obviously um keep a receipt of for your bookkeeping and because that proves that's like your receipt for those um and then the other thing i recommend in terms of really knowing your numbers having a copy of them but also just kind of really getting to grips if you want to really dive deep into what each order how much you made per order you're going to want to generate the csv file which if you click usually even with quite a few transactions usually only takes a few seconds once that's done then you're going to want to obviously download the csv file to your computer and upload it within whatever spreadsheet software or tool that you use whether that is microsoft excel whether that is the mac equivalent or personally i like to use google sheets because it's free now of course you can also see all those transactions listed one by one down below but this is not an easy way to look at this data especially when you have a lot of sales you can see i've got over 14 odd pages of this and it's not really in any kind of order it's quite difficult to understand so i do recommend if you like look at these and really start to get overwhelmed the csv file is going to be your best friend so here i am in the csv file just as it comes it's good to have a copy of the original but really in order to understand this data and dive into this data and potentially check this data is correct in your monthly statement we're going to need to manipulate the data slightly edit the data slightly so that it looks better for our human eyes because this is in computer speech right now so i obviously depending on how you work with spreadsheets i'm not a spreadsheet guru okay there are definitely people out there who are much better on spreadsheets than me however i know enough to get around so um what i tend to do when i download the sheet is the first thing i do is obviously just um make this slightly easier to read on my eyes and then i freeze it so when i do that obviously that is always at the top step one i can now see very quickly what each column is no matter where i am in the spreadsheet the next thing i do is i come here to column b which obviously then goes through what the type of um transaction is in the etsy shop the next thing i do is i sort this from a to z and what that does is it groups all the same type of transactions together so you can see all the deposits are together this is what has been sent to my bank account then all the fees are then together and further down keep going then all the sales kind of income and fees are together and and then all that that i have obviously paid or the customer has paid is also listed there then to make this spreadsheet actually something that i can do calculations in the first thing i need to do then is get rid of all these pound signs because spreadsheets do not like pound signs so i go to where is it edit find and replace i type in the pound symbol and i replace it with just a space just a blank space i tell it to find them and replace all done and then what that does is it's got rid of all the pound signs and i can now obviously add in some calculations and to make this data say what i want it to say obviously say what the truth is in terms of what it has um and then just yeah again make sure that it's something you can understand so i then just nicely like to add some spaces because my brain works that way and so all i tend to do because there's a lot of information in these when you sell a lot of products is i just tend to um basically add rows here and then i calculate this so let me quickly do that right now so to do that i just type in the cell numbers this again there'll be people screaming at the computer now like there's an easier way to do that i'm not an excel guru okay this is how i know how to do it um so i just add in that and then that's a fee i'm i'm one of those people who is very color orientated so if it's a fee i do it in red if it's income i do it in green just the way my brain works and so i'm going to do this for the other types in this column and there we go so i have got the total here of all of that and the tax i've got here obviously all the sales any fees and those sorts of things there and then we've got the fees up here and so for most people that will be all you need you just need want to check and have a record that what etsy say has come in has come in and what etsy say have obviously gone out has gone out and you've got that in terms of this manipulated cv file now of course if you want to dive deeper into this and really look at the transactions or the fees individually you can obviously do some advanced sorting so you could add a second sort on this column which is title which obviously then you could um order it by again a to z and what it would do if you do it in the correct way and you would have all your type first sorted and then a second sort by a to z again the transaction so you have let's look at some of these let's go one by one through these so that you make they make sense start from the very beginning and so we've got fees we've got the regulatory operating fee that's one of them and the processing fee the transaction fee the listing fee and then we start again again if you want details on what each fee is i recommend checking out this video and of course it's linked down below which is all about the fees that's quite an extensive video so i'm not going to go into that again um but of course what you can see here then is you can see the info per order so let's say if i add this break here so that it's easier to look at if you wanted to look at this order and how much profit you made in terms of the product price what etsy took off it then plus your own expenses obviously you have the information to be able to do that then the next type we've obviously got all the payment information for specific orders so again you can correlate obviously the number here with the number uh in the fee data and when it comes to vat and tax again you've got all the information for a particular order which if you already know the number and you don't want to go through all the spreadsheet like looking at numbers obviously you can just go ctrl find and then type in the number up here and it will find it for you so when it comes to your monthly accounts you want those three things the screenshot or the print to pdf of your monthly overview statement as it is on the screen you then want your vat statement which is etsy's statement to you uh with the information of the vat that you have paid on the fees that they charge and then you're also going to want to download your csv file and use that in any way that it helps you to understand the data that you have now if you would like more help in terms of managing your small business finances then you are in luck we recently had a guest expert an actual accountant come into the confident creators club and share pretty much all the things and answer all the questions that small business owners have when it comes to accounting whether to be self-employed or a limited company obviously this was uk specific as i the accountant and most of my club members are in the uk but even if you are in another country there was some good practice in terms of documentation what bank accounts to kind of set up and how to manage your expenses and income and so much more so if you struggle with your small business bookkeeping finances or accounting then i definitely recommend joining the confident creators club to access that training plus all the others within the confident creators club to help you start and grow a successful small business online that's all for this week's video the video i mentioned which details about all the fees is right here and if you would like more help growing your sales check out this video next i'll see you over there bye