5 Best Etsy Accounting Softwares in 2024

Managing finances as an Etsy seller can quickly become overwhelming. The stakes are high and any oversight could lead to overpaying sales tax or VAT. 

Etsy does offer basic financial reports, but many sellers are still manually entering sales, returns, and fees into their accounting systems, which is both time-consuming and can lead to errors.

Specialized Etsy accounting software can simplify this process, and help you manage your accounting with ease.

We compared 5 best accounting software for Etsy sellers to see how these tools can help streamline your bookkeeping, and we’ve included a comparison table so you can see how they stack up at a glance.

Best Etsy Accounting Software

• Xero with Link My Books
• QuickBooks with Link My Books
• FreshBooks
• Sage
• Wave

Xero with Link My Books

Xero is an accounting software that excels when paired with Link My Books. This combination is good for Etsy sellers because it offers a seamless way to manage all your financial data.

Xero Features

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• Bank Reconciliation: You can automatically import and reconcile transactions from your bank account, ensuring accurate financial records without the hassle of manual entry.
• Expense Management: Helps you keep track of business expenses, including supplies, shipping, and marketing costs, which is crucial for understanding your profitability and managing budgets.
• Inventory Management: When you need to monitor stock levels, set up alerts for low inventory, and track inventory in real-time to avoid stockouts and manage product availability.
• Sales Tax Management: Automates the calculation and filing of VAT (or other sales taxes) to HMRC, so you can stay compliant with tax regulations, especially when selling to different regions.
• Financial Reporting: This helps you understand your business’s financial health, track profit margins, and make informed decisions.
• Integrations: Connecting Xero with Etsy (through apps like Link My Books) is the only way to automate the import of your sales data, fees, and taxes, and streamline your entire accounting process.

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Link My Books + Xero = Quick Etsy accounting

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For Etsy sellers, Xero alone may not be enough to handle your e-commerce accounting, accurately managing Etsy bookkeeping and fees like, sales tax, and multiple sales channels is difficult using only Xero.

This is where Link My Books comes in. Xero integrates seamlessly with Link My Books, streamlining the Etsy accounting process and making it easier to manage sales, returns, and Etsy fees. Here’s what to expect when you integrate:

• Automatic Sales and Payout Reconciliation: No more dealing with confusing transaction batches. Link My Books automatically summarizes your transactions, creating detailed, itemized invoices that clearly lay out your income and expenses, including sales tax and fees.
• Sync and Access Historical Transactions: You can easily import detailed historical financial data, including processing fees, discounts, shipping, and sales, all consolidated in just one click.
• Multi-Currency Support: With buyers from around the world, managing different currencies can be a headache. Xero+Link my Books integration handles accurate exchange rates for international sales automatically.
• Crystal Clear Reporting: You can get real-time insights into your store’s performance with accurate Profit and Loss reports, balance sheets, and data on your best-selling items.

Here’s how it works:

1. Connect Etsy and Xero to Link My Books: Start by linking your Etsy account and Xero to Link My Books. This integration ensures seamless data flow between the platforms.

2. Automatic Transaction Validation: Each time you receive a payout from Etsy, Link My Books validates every transaction within that payout. It checks the details of each sale, refund, and fee to ensure the correct tax treatment is applied.

3. Generate a Clean Summary in Xero: Link My Books then creates a clean summary in Xero, breaking down the payout into sales, refunds, and fees, and allocates them to the correct accounts. Importantly, it applies the correct tax rates to each transaction.

4. Effortless Reconciliation: The entry in Xero matches the Etsy payout deposit exactly, allowing you to reconcile the transactions with your bank account in just one click.

Xero Pricing

For UK Customers

While Xero’s Ignite plan is budget-friendly, it does come with some limitations, like only allowing 20 invoices and 10 bills per month. If your business is growing, you might want to upgrade to Grow, which offers more flexibility. And if you deal with multiple currencies, the Comprehensive plan has you covered.

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For US Customers

For AU Customers 

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Try Link My Books for free for 14 days, it’s free. You don’t need a credit card and it takes 15 min to set up. 

QuickBooks Online with Link My Books

QuickBooks Online is a good choice for Etsy accounting software, it is user-friendly and has useful features. It’s an accounting solution that can adapt to the diverse needs of your business, whether you sell exclusively on Etsy or across multiple marketplaces.

By integrating QuickBooks Online with Link My Books, you can take your accounting to the next level. This powerful combination automates your Etsy sales data import directly into QuickBooks, eliminating the need for manual entries and making your financial records accurate.

QuickBooks Features

• Expense Tracking: QuickBooks allows you to track business expenses, including materials, shipping, and marketing costs, by categorizing spending and linking receipts directly to expenses.
• Bank Reconciliation: This feature is essential for Etsy sellers as it automatically matches your Etsy payouts with your bank transactions. This ensures your financial records are accurate and helps you avoid errors when reconciling your accounts.
• Cash Flow Management: Understanding your cash flow is vital for making informed decisions about inventory purchases and other business investments. QuickBooks provides real-time insights into your cash flow, helping you forecast and manage your money effectively.
• Reporting: QuickBooks' reporting features, such as profit and loss statements and cash flow reports, are important for Etsy sellers to track their financial health, understand profitability, and make data-driven business decisions.
• Multi-Currency Support: If your Etsy shop serves international customers, multi-currency support is crucial. QuickBooks handles transactions in multiple currencies and automatically updates exchange rates, making it easier to manage international sales.
• Integrations: QuickBooks' ability to integrate with various third-party apps, including e-commerce platforms and payment processors, is vital for Etsy sellers who want to streamline operations and keep all their business data connected.

Link My Books + QuickBooks = Simple Etsy accounting

QuickBooks Online is a powerful tool for managing your business's finances, but when you integrate it with Link My Books, it becomes even more efficient. 

Link My Books automatically imports all your Etsy sales data, including sales, refunds, and fees, directly into QuickBooks, so you can have all the insight you need in one place. Here’s what to expect from the QuickBooks+Link My Books integration for Etsy.

• Accurate Tax Management: Managing taxes can be challenging, especially when selling across different states or countries. Link My Books simplifies this process by automatically calculating and applying the correct sales tax or VAT to each transaction based on its location. 
• Customizable Class Tracking: QuickBooks lets you categorize and track your income and expenses. When you integrate it with Link My Books it automatically assigns sales, fees, and other transactions to the appropriate class, ensuring that your Profit & Loss statements are accurate. 
• Streamlined Reconciliation: Link My Books generates a clean summary of your Etsy payouts, breaking them down into sales, fees, refunds, and other relevant categories. This summary is automatically posted in QuickBooks, making reconciliation a one-click process.
• Enhanced Reporting and Analytics: Link My Books provides detailed breakdowns of your Etsy transactions. Whether you're looking at sales trends, profitability, or tax liabilities, this integration provides the data you need to make informed business decisions.

QuickBooks Pricing

For UK Customers

*The image reflects a current offer 

Simple Start is best for freelancers and very small businesses with minimal accounting needs. Essentials suits small businesses that require basic features plus bill management and time tracking. Plus is ideal for businesses that need to manage inventory and track project profitability.

Advanced is designed for larger businesses that need advanced reporting, more users, and premium support.

For US Customers

*The image is reflecting a current discount

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For AU Customers 

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If you subscribe now you can get live expert assistance free for 30 days*

You can try QuickBooks Amazon Integration for 14 days free of charge. 

• No credit card is required
• Easy 15-minute setup

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FreshBooks

FreshBooks works well for Etsy sellers who are looking for an easy-to-use, affordable Etsy accounting software that covers the basics without overwhelming them with features they don’t need. Its user-friendly interface makes it accessible even for those with limited accounting knowledge.

One major drawback is that it doesn’t integrate with Link My Books so you would have to download your data from Etsy, separate revenue by country and tax rate, and expenses by tax rate then manually account for those figures in FreshBooks. This can easily lead to error and might end up costing you more than you save on cheaper software. 

FreshBooks Features

• Invoicing and Payments: You can create professional-looking invoices that can be customized to match your brand. You can also automate payment reminders and accept payments directly through the invoice using integrations with payment processors like PayPal and Stripe.
• Expense Tracking: You can categorize your expenses and link them directly to your income. This is especially useful for Etsy sellers who need to keep track of material costs, shipping, and other business-related expenses.
• Financial Reporting: FreshBooks provides essential financial reports like profit and loss statements, sales tax summaries, and expense reports. While not as detailed as some other software, it provides the necessary insights for small business owners.
• Integrations: It integrates with a variety of apps, including payment gateways, and CRM systems, though it doesn’t have as many integrations as Xero or QuickBooks.

FreshBooks Pricing

For UK Customers

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FreshBooks offers four plans. Lite for freelancers with up to 5 clients, Plus for growing businesses with up to 50 clients, Premium for unlimited clients, and Select, a custom-priced option with advanced features and a dedicated account manager. Each plan includes essential tools like invoicing, expense tracking, and accounting.

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For US Customers

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For AU Customers

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Sage

Sage is going to be a good Etsy accounting software if you have more complex accounting needs, particularly if you’re managing larger inventories or need detailed financial reports. Its advanced features provide the tools necessary to manage a growing business efficiently.

Sage Features

• Advanced Inventory Management: Inventory tracking, including automatic stock level updates and low-stock alerts. This feature is useful for Etsy sellers who need to maintain accurate inventory records to avoid stockouts or overstocking.
• Comprehensive Financial Reporting: Detailed financial reports, offering insights into your cash flow, profitability, and overall business performance. This level of detail is beneficial if you’re looking to scale your operations.
• Multi-User Access: Multiple users can access your account, which is useful for businesses with teams. This means your accountant, bookkeeper, or business partner can collaborate on managing the finances.
• Third-Party Integrations: While Sage doesn’t integrate directly with Etsy, it can connect to e-commerce platforms through third-party apps, although that might end up costing you more than a Xero or Quick Books + Link My Books integration. 

Sage Pricing

For UK Customers 

The Basic Package starts at £15/month, with additional features available on higher-tier plans.

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For US Customers 

Wave

Wave is a free Etsy accounting software that offers essential features for small businesses and freelancers, making it an attractive option for Etsy sellers who are just starting out or who have a tight budget.

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While it lacks some of the advanced features found in paid software, it provides all the basic tools needed to manage your finances.

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Same as Freshbooks Wave doesn’t integrate with Link My Books so you would have to download all your data from Etsy and then manually input it. 

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Wave Features

• Free Accounting and Invoicing: Wave offers a suite of free tools, including accounting, invoicing, and receipt scanning. This makes it a cost-effective option for Etsy sellers who need basic financial management without the overhead of a paid subscription.
• Expense Tracking: Wave allows you to track your expenses by categorizing them and linking them to your income. This feature helps Etsy sellers manage their business costs effectively.
• Sales Tax Management: Wave provides basic sales tax tracking, ensuring you stay compliant with local tax laws. While it’s not as sophisticated as other software, it’s sufficient for managing sales tax on a smaller scale.
• Multi-Currency Support: Wave supports transactions in multiple currencies, which is useful for Etsy sellers who cater to an international market. However, this feature may require a paid add-on.
• Integrations: Wave integrates with payment processors like PayPal and Stripe, allowing you to accept payments directly through your invoices. However, its integration options are more limited compared to Xero or QuickBooks.

Wave Pricing

New Wave account sign-ups are limited to US and Canadian business owners only. Wawe doesn’t provide support for this product outside of this region.

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• Free Plan: Wave offers free accounting services, including invoicing, billing, and expense tracking. Payroll is not included in the free plan.
• Payroll Add-On: Available as a paid service, where the pricing varies depending on the state. In tax-service states, Wave handles payroll taxes on your behalf, whereas in self-service states, you manage payroll taxes manually.

For US Customers

*The pricing on the image is for the US market.

Wave’s basic accounting and invoicing tools are free, making it a good choice if you’re a budget-conscious seller. If you need more advanced features, you can upgrade to a monthly plan for $16/month, which is around £12/month.

How to Choose the Best Etsy Accounting Software for You

Selecting the right Etsy accounting software for your shop is crucial to managing your business effectively. Here are the key criteria to consider:

1. Accuracy

Accuracy in financial tracking is non-negotiable. Mismanagement of your finances, especially with Etsy’s varied fee structures and tax obligations, can lead to costly errors. Look for software that ensures precise bookkeeping, reduces the risk of manual entry errors, and provides accurate tax calculations.

2. Time-Saving Ability

Time is a valuable resource, especially for small business owners. Your accounting software should streamline processes like invoicing, reconciliation, and tax calculations to save you time. Automated features, such as automatic transaction imports and reconciliation, allow you to focus on growing your business rather than getting bogged down in bookkeeping.

3. eCommerce-Specific Features

Your accounting software should have features tailored to the needs of an Etsy business, like inventory tracking, Etsy integration, and sales tax calculation. Look for Etsy tools for sellers that fit your business. As your business grows, having these features in place will become increasingly important.

4. Ease of Use

The user interface of your Etsy bookkeeping software should be intuitive, reducing the learning curve, especially if you’re new to accounting software. While feature-rich software may be appealing, consider whether you need all the functionalities or if a simpler solution might be more effective. Assess how easy the software is to navigate and how quickly you can learn to use it.

5. Customer Support

Reliable customer support is essential, especially if you encounter technical issues or need help understanding certain features. Quick and effective support can prevent disruptions in your business operations. Look for software that offers multiple support channels like live chat, email, and phone, so you can choose the method that best suits your needs.

6. Cost

Cost is always a significant factor, especially for small businesses. While free accounting software for Etsy sellers might fit a tight budget, it often comes with limitations that could cost more in the long run due to errors, lack of features, or manual work. Consider the long-term value of paying for software like Xero with Link My Books, which offers comprehensive features and peace of mind that your accounting is accurate and efficient.

Etsy Accounting Software Compared

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Why Accounting Software Alone is Not Enough for Etsy Sellers

Etsy sellers face a web of complex tax regulations that vary significantly by region. These regulations demand more than just the basic functionality of accounting software. You need a solution that can accurately track, calculate, and report taxes across multiple jurisdictions.

This is where advanced integrations like Link My Books come into play. Link My Books connects seamlessly with your Etsy accounting software to automate the process of importing and categorizing Etsy sales, Etsy fees, Etsy bookkeeping and taxes. It ensures that all transactions are recorded with the correct tax treatment ensuring compliance with local regulations.

For example:

• When a UK seller makes a sale to a customer in the EU, Link My Books automatically applies the correct Zero Rated Income Etsy VAT rate. 
• In the US, it tracks collected and remitted sales tax. 
• In Australia, it ensures that GST is accurately calculated and reported based on the destination of the sale.

Finally, using just accounting software limits your ability to gain valuable e-commerce insights. Tools like Link My Books provide detailed analytics specific to Etsy sellers, like sales performance by product, region, or season. These insights are crucial for optimizing your listings, managing inventory, and scaling your business effectively.

How to Make Etsy Accounting Easy with Link My Books

Link My Books is a specialized solution designed to simplify Etsy accounting and bookkeeping. It integrates with your accounting software, consolidating Etsy sales and costs, and making reconciliation quick and accurate.

Link My Books Features 

Payout Reconciliation

Link My Books automates the reconciliation of your Etsy payouts, ensuring that every transaction is accurately recorded and matched in your accounting software, such as Xero or QuickBooks Online. 

With just a few clicks, your sales, fees, and taxes are automatically categorized and reconciled.

Financial Analytics

Understanding the financial health of your Etsy shop is necessary for making informed decisions and driving growth. The Financial Analytics feature provides you with detailed insights into your business’s performance. From tracking profitability by product to analyzing your cash flow, this tool offers real-time data that helps you stay on top of your finances. 

With easy-to-read dashboards and customizable reports, you can monitor key metrics, identify trends, and make data-driven decisions.

Industry Benchmarking

The benchmarking feature allows you to compare your shop’s performance against anonymous data from similar businesses. This includes key metrics like sales growth, refund ratios, and fee ratios. 

Instead of focusing on exact figures, Link My Books looks at percentage changes and trends, giving you a clear picture of how your business is performing relative to others. 

Cost of Goods Tracking

Knowing your true profitability means understanding the costs associated with producing your goods. Link My Books makes it easy to track the cost of goods sold (COGS) by automatically associating your costs with your sales. 

You will always know that your profit margins are accurately calculated, giving you a clear picture of your business’s financial health. 

By tracking COGS alongside revenue, you can make informed decisions about pricing, inventory management, and overall business strategy.

Accurate Tax Calculation

Tax compliance can be one of the most challenging aspects of running an Etsy shop, especially when selling across different states or countries. 

Link My Books simplifies tax management by automatically calculating and applying the correct sales tax or VAT for each transaction based on its location. All your transactions will be recorded with the right tax treatment in your accounting software, helping you stay compliant with local regulations and preventing costly tax errors.

Link My Books Pricing

Try our interactive pricing:

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We've kept our pricing as straightforward as possible for Etsy sellers. There are three plans available: Lite, Pro, and Premium. There is a slider for you to manually adjust your number of sales per month. The price of your plan will change to reflect this.

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Our Lite plans start from just £13/month or $17/month if you’re in the US, they include:

• Connect 1 sales channel
• 3 months of historical data

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Our Pro plans start from just £23/month or $29/month if you’re in the US, they include:

• Connect up to 5 sales channels
• 12 months of historical data

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Larger plans are available too with more orders and more channels.

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All Link My Books yearly members can get a free two months of our software. 

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Get started with Link My Books for Etsy

Link My Books not only simplifies your Etsy accounting but also provides the insights you need to grow your business. 

Whether you’re looking to streamline your financial processes, gain a deeper understanding of your business’s performance, or compare your shop’s success with others, Link My Books is the right choice for you. 

Get started with Link My Books for Etsy sellers for free today.

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