5 Essential Tools for Etsy Accounting
Etsy is a fantastic platform to sell your unique creations worldwide to interested buyers. In today’s technologically-focused world, being able to share things or products you’ve created with an international audience is an incredible privilege. Still, it also comes with a lot of work and confusion when setting up a storefront and handling finances.
If you use a platform like Etsy to sell your merchandise, it can be difficult to manage your Etsy accounting. There are so many different aspects that you need to consider, like potentially differing tax laws, sales taxes, VAT, and everything in between. As an Etsy seller, accounting for every single penny that enters or leaves your business is a must, but the thought of it can be overwhelming.
It doesn’t have to be, though. By following some simple rules and using some specially designed tools, you’ll be saving yourself time and money in no time.
Accounting Software is a Must
When you’re first getting started with a new business, whether a brick-and-mortar business or an online platform like Etsy, accounting software can save you hours of time and effort. Finding a thorough accounting software makes it easy to automate some of the features you might need for your Etsy accounting, like data entry, tracking sales, tracking expenses, and other money transactions.
Using accounting software will make your documentation go much more smoothly. Because some of the features are automated, you won’t have to enter each expense line by line or track each sale by hand. Of course, you will always need to double-check all of your entries, but the fact that you won’t have to input everything manually is a significant time saver. It’s like having an assistant to help you with your Etsy seller accounting without the added cost.
Etsy and Accounting Software Integration
One of the best parts about using accounting software is that many software companies today allow you to integrate their software with other platforms. For example, Link My Books is accounting integration software that allows you to integrate your accounting software with the Etsy selling platform itself. With Link My Books, your Etsy accounting can automatically populate into the software, meaning that you don't have to enter any sales data manually. This unique integration reduces the chance of making any kind of entry errors that may affect your Etsy accounting.
This simple step is an incredible way to streamline your accounting in a way you may have never been able to do before, saving you hours of time staring at your computer.
While you should always review everything before submitting any accounting for tax purposes or documentation purposes, reviewing a pre-filled document takes much less time than entering all of the data for one yourself. Etsy platform integration and Etsy QuickBooks integration can help you achieve this.
Real-Time Financial Reports
There’s much to be said about staying on top of financial reports for your business. With quick reporting, you’ll be able to tell what products are selling the best on your platform, which ones are close to selling out, how many units you can anticipate selling, and more. If you’re close to hitting a financial goal or a significant milestone, efficient financial reporting can help you know when you hit that goal almost immediately. However, this all depends on you being able to sit down and run those reports amid everything else you need to do for your business, which isn’t always feasible.
With real-time financial reporting software, you won’t need to worry about running reports constantly when you’re busy. This software will track sales, transactions, what products are selling, how many, or anything else you need to prioritise. Real-time financial reporting can be a game changer when you’re trying to expand your business or are concerned about your profitability. When you’re able to see those numbers roll in as they come, it can be an encouraging way to watch your business grow in real time.
Using a Mobile App
Imagine that you’re heading to a meeting with your accounting professional, but you realise that you’ve forgotten your laptop with all your information. Your accountant will want to see all the numbers to help you make a better-informed decision about your business, but without your laptop, you aren’t sure how you will be able to share the information. With a mobile app, you don’t need to worry.
If you use Xero or QuickBooks, their app can give you all the information you need right at your fingertips. The mobile app gives you quick and easy access to your Etsy seller accounting information, no matter where you may be. Knowing that you can check your financial information with the tap of a screen can give you peace of mind, which is vital to a small business owner. You’ll never be caught without the information you need at hand.
Tax Preparation Help
Tax preparation is stressful for everyone. No matter how much time and effort you put into getting everything ready for tax season, you’re likely to feel overwhelmed or as though you’ve forgotten something. It happens to everyone. If you’re running a small business from Etsy, then you’re likely feeling more pressure than the average person.
With Link My Books, you won’t need to stress so much. With our integrated software, you’ll streamline your accounting process in a way that gives you a cohesive overview of your business. Our software can help you categorise your expenses and generate reports that will save you hours of time when it comes time for tax preparation. Doing your bookkeeping has never been easier.
Link My Books
With these tools at hand, your Etsy accounting will go more smoothly than it ever has before. With our fully integrated system for Etsy, Amazon, eBay, and Shopify, online retailers have an easier time than ever before with their business accounting.
After only a 15-minute setup, you’ll be able to save hours of work by not worrying about data entry, calculating taxes, and all of the other numbers that come up when you own a business. We want you to be able to focus more time on creating exceptional products for your customers and less time worrying about the stress that accounting brings.
If you’re interested in checking out Link My Books’ software, you can get started for free with us today.