Best accounting software for Etsy Sellers

Being an Etsy seller is a rewarding and fulfilling profession that lets you showcase your creativity to a wide audience. However, managing the financial aspect of your Etsy shop can be quite challenging, especially if you don’t have a background in accounting. Fortunately, technology has made it easier for Etsy sellers to keep track of their finances. There’s a wide selection of accounting software that can help you save time, effort, and money. With that said, in this blog post, we will be discussing the best accounting software for Etsy sellers.

Without further ado, here are our top 5 alternatives to GoDaddy Bookkeeping you should consider as an Etsy seller:

1. QuickBooks

QuickBooks is the obvious default option for bookkeeping, so we should start here with our ultimate Etsy accounting software list. Made by Intuit, it has been the industry standard for many years and now has many different plans and features.

For example, QuickBooks can track inventory levels (albeit in their pricier premium plans only), generate invoices, and help with tax preparation. In addition, QuickBooks integrates with some popular payment processors, making it easy to accept payments and deposit funds into your bank account.

QuickBooks Self-Employed is the version that integrates directly with Etsy, although a big caveat is that this version only supports connecting a single shop and has no inventory or asset tracking capabilities, making it a poor fit for growing Etsy sellers.

To connect multiple Etsy shops requires Quickbooks Online Plus or above, which can make the monthly costs stack up pretty quickly.

2. Xero

Etsy sellers have a lot on their plate. Not only do they have to design and create beautiful products, but they also need to keep track of their inventory, orders, and finances. A good bookkeeping solution can help take some of the burden off of Etsy sellers by providing an easy way to track sales and expenses. Xero is a cloud-based bookkeeping solution that offers several features that are perfect for Etsy sellers.

Although Xero does not directly integrate with Etsy, there are several plugins and solutions available to make the two platforms play nicely together. Additionally, Xero offers detailed reports that can help Etsy sellers track their business performance.

Overall, Xero is an excellent bookkeeping alternative to both GoDaddy and Quickbooks for Etsy sellers who are looking for an easy way to stay organized and keep on top of their finances.

3. Craftybase

Craftybase is designed specifically for Etsy sellers - because of the unique requirements of handmade sellers, it bundles both powerful raw material and product tracking inventory together with accounting features into an unbeatable “all in one” package.

This results in software that contains everything a handmade seller needs - with none of the cruft of bigger accounting packages. It has a range of cost effective pay-by-the-month plans to cater for most levels of handmade businesses.

It’s easy to use and provides all the features a handmade seller needs to manage their finances and inventory, including profit and loss statements, Schedule C creation, invoicing, pricing and profit guidance, inventory tracking, lot and location tracking, and more.

Best of all, Craftybase is a featured integration with Etsy, among many other popular sales channels so you can manage your material and product levels, revenue and expenses and profits from one single place.

If you’re looking for a cost effective package designed for Etsy sellers that will save you time and help you run your business more efficiently, Craftybase is the perfect choice. Try Craftybase for 14 days for free now.

4. Paper & Spark Spreadsheets

For those that have smaller order volumes and thus don’t necessarily need all the bells and whistles of an automated inventory package, it’s worth considering moving to a spreadsheet solution instead.

Janet from Paper & Spark has created a wonderful range of downloadable spreadsheets for sellers, with basic profit & expense tracking and inventory management. There is also the ability to manually import data from PayPal, Etsy and Shopify which can be handy if you sell via these channels.

A big drawcard on this particular option is that there is only one payment required to purchase this solution (rather than an ongoing subscription), although as we have discussed in other articles on this blog, spreadsheet solutions don’t typically scale well for handmade businesses that are aiming to grow, so keep this in mind if considering this route.

5. Wave Accounting

Wave is another Etsy accounting solution to consider that makes it easy to track your sales, expenses, and profits.

Wave is also completely free. That’s right, free. There are no monthly fees or hidden costs. And because Wave is web-based, there’s no software to install or update.

Wave also has powerful features, considering it is a free option. Wave offers all the features you need to manage your finances, including invoicing, tracking inventory, and generating reports. And if you need more than what Wave offers out-of-the-box, there are dozens of add-ons available to extend the functionality of the software.

Unfortunately, Wave has depreciated it’s direct support for Etsy recently. In order to import data from this source you’ll need to connect via a (paid) service like Zapier in order to make this feed available automatically.

If, keeping these cons in mind, you are looking for a cost effective solution and are happy with basic bank feed tracking for your expenses and revenue, then Wave is certainly a good solid choice.

In conclusion, selecting the best accounting software for your Etsy shop will depend on various factors such as your business size, budget, and accounting skills. Each of the software we’ve discussed in this blog post offers unique functionalities that can help you streamline your financial tasks and manage your Etsy shop effectively.

Whether you choose to use a free solution like Wave or invest in a comprehensive software that also allows you to track your inventory (like Craftybase), you can rest assured that you’ll have an easier time managing your Etsy shop’s finances.