bookkeeping tax

Best Accounting Software for Etsy Sellers in 2024

We discuss the features you need to consider when selecting accounting software in 2024 as an Etsy seller.

Running an Etsy shop can be a fun adventure, but keeping track of your finances? Not so much. Luckily, there are some fantastic accounting software options out there in 2024 to make life easier.

Without further ado, let’s find out the best acccounting software options for your Etsy business in 2024!

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What is accounting software?

Accounting software is a type of computer program that helps individuals and businesses manage their financial transactions and records. It typically includes features such as bookkeeping, invoicing, budgeting, tax preparation, and financial reporting.

With the rise of e-commerce and online marketplaces like Etsy, there has been an increase in demand for accounting software tailored specifically for small businesses and self-employed individuals.

Why Etsy Sellers Should Adopt Accounting Software

As an Etsy seller, you may be thinking, “Do I really need accounting software?” The short answer is yes. Here’s why:

1. Simplify Your Bookkeeping

One of the main benefits of accounting software is that it simplifies bookkeeping, which can be a tedious and time-consuming task for Etsy sellers. With most accounting software, you can automatically import your Etsy sales data, track expenses, and categorize transactions, making it easy to keep an accurate record of your financials.

2. Save Time and Increase Efficiency

Having all your financial information in one place not only makes bookkeeping easier but also saves you time. Instead of manually entering data into spreadsheets or trying to decipher handwritten records, accounting software automates the process and reduces the risk of errors. This allows you to focus on other aspects of your business, such as creating products or marketing.

3. Better Financial Management

Accounting software can also provide valuable insights into your financial health. With features like budget tracking and financial reporting, you can easily see how much money is coming in and going out of your Etsy shop, identify areas where you can cut costs, and make informed decisions for the future of your business.

4. Tax Preparation Made Easier

Nobody enjoys tax season, but accounting software can help ease the burden. With accurate and organized financial records, you can easily generate reports to calculate your taxes and file them on time. Some accounting software even integrates with popular tax preparation programs, making the process even smoother.

Choosing the Right Accounting Software for Your Etsy Shop

With so many accounting software options available, it can be overwhelming to choose the right one for your Etsy shop. Here are a few things to consider:

Price

Many accounting software programs offer different pricing plans based on features and usage. Consider your budget and needs when comparing prices.

Features

Different accounting software programs offer varying features and capabilities. Make sure to choose one that meets your specific needs, such as integration with Etsy, tax preparation, or budget tracking.

Ease of Use

Some accounting software can be complex and difficult to navigate. Look for user-friendly options that require minimal training or technical knowledge.

Quality of Support

If you encounter any issues or have questions about the software, it’s essential to have reliable customer support. Look for accounting software with good reviews and responsive customer service.

Top Etsy Accounting Picks for 2024

In this section, we will introduce some of the best accounting software options for Etsy sellers in 2024, catering to a variety of needs and budgets. Whether you’re just starting out or looking to upgrade your current system, these top contenders offer robust features to support your financial health and growth.

Craftybase

Craftybase is designed with makers in mind, and it’s perfect for Etsy sellers.

Key Features: Inventory Management: Easily track materials and finished products. Cost Tracking: Helps with pricing by automatically maintaining on-hand inventory calculations. Etsy Integration: Connects seamlessly to import sales, product, and fee data. Tax Reports: Simplifies filing with easy-to-generate tax reports. Pricing: Starts at $19/month, offering solid value for its features.

QuickBooks Online

QuickBooks Online is a versatile tool that works well for a variety of small businesses, including Etsy shops.

Key Features: Invoicing: Customizable invoice templates with automated reminders. Expense Tracking: Automatically categorizes expenses and reconciles bank accounts. Integration: Some (limited) plans integrate with Etsy and other e-commerce platforms. Mobile App: Manage your business on-the-go with the mobile app. Pricing: Plans start at $25/month, with discounts for new users.

Xero

Xero is known for its friendly user interface and mighty accounting features, just right for Etsy sellers.

Key Features: Invoicing and Payments: Simple invoicing and payment tracking. Bank Reconciliation: Imports and reconciles bank feeds automatically. Integration: Supports loads of third-party apps, some of which can handle Etsy data. Reporting: Great tools for comprehensive financial reporting. Pricing: Plans start at $12/month, making it a budget-friendly option for small businesses.

Wave

Wave offers free accounting software that’s a hit with small business owners.

Key Features: Free Accounting: Core accounting features are free to use. Invoicing: Professional invoice creation and management. Expense Tracking: Simplifies tracking expenses and scanning receipts. Integration: No direct Etsy integration, so third-party tools are a must. Pricing: Free for accounting and invoicing; pay-as-you-go for payroll and payment processing.

FreshBooks

FreshBooks is an easy-to-use option with a focus on invoicing and time-tracking—ideal for service-based Etsy sellers.

Key Features: Invoicing: Customize and automate your invoices. Time Tracking: Perfect for tracking billable hours. Expense Management: Automatically categorizes and tracks expenses. Integration: Needs plug-ins for Etsy integration. Pricing: Starts at $15/month, with more features at higher tiers.

Etsy Accounting Software: A Quick Implementation Guide

Getting set up with accounting software for your Etsy shop is easy if you follow these steps.

Step 1: Choose the Right Software

Pick the software that best fits your needs and budget. Craftybase is a great go-to for many Etsy sellers thanks to its focus on small makers and competitive pricing.

Step 2: Set Up Your Account

Sign up and follow the setup wizard to enter basic details like your business name, contact info, and currency settings.

Step 3: Integrate with Etsy

If your software supports Etsy integration, connect your shop to automatically import sales data. This will save you time and ensure accuracy.

Step 4: Import Data

Bring in your existing financial data, like past sales, expenses, and inventory. Many software options offer tools or services to help with this.

Step 5: Customize Settings

Adjust settings to fit your business needs, such as setting tax rates, payment terms, and invoice templates.

Step 6: Start Using the Software

Begin tracking sales, managing expenses, and generating financial reports. Use any available training resources or customer support to get the most from your chosen tool.

Accounting Best Practices: Regular Updates: Keep the software updated with the latest transactions for accurate records. Reconcile Accounts: Regularly reconcile bank accounts to catch any discrepancies early. Leverage Reports: Use financial reports to gain insights and make informed decisions. Stay Compliant: Use tax features to stay compliant with local tax regulations.

Conclusion

With 2024 in full swing, it’s a great time to gear up your Etsy shop’s finances. The right accounting software can take a load off your shoulders by automating tasks and providing valuable insights. Whether you go with Craftybase, QuickBooks Online, Xero, Wave, or FreshBooks, investing in accounting software will bring you closer to greater efficiency and profitability. Ready to take your Etsy shop’s finances to the next level? Explore these options and let us know which tools work for you in the comments below!

Nicole Pascoe Nicole Pascoe - Profile

Written by Nicole Pascoe

Nicole is the co-founder of Craftybase, inventory and manufacturing software designed for small manufacturers. She has been working with, and writing articles for, small manufacturing businesses for the last 12 years. Her passion is to help makers to become more successful with their online endeavors by empowering them with the knowledge they need to take their business to the next level.