If you're an eBay seller based in the UK looking for a free eBay seller bookkeeping spreadsheet then you're ion luck... You can download our eBay accounting spreadsheet for free and use this article to walk you through it.
We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.
As we discussed in our article on the best eBay seller accounting software, it's important to know if using a spreadsheet is right for your eBay business.
Essentially if you are just starting out or you are still a relatively small business then using a spreadsheet could be perfect for you.
If you're VAT registered then you probably shouldn't be using a spreadsheet for your bookkeeping because HMRC now require all VAT returns to be submitted through Making Tax Digital approved softwares such as Xero or QuickBooks.
The file contains 3 sheets. Transactions, VAT Rates and Transaction Types.
By default the following transaction types are in this sheet:
It's up to you to decide how you want to account for your eBay revenues but a clean approach would be to use these defaults. You could of course add more such as eBay Shipping and eBay Shipping Refunds or break down your fees into the individual fee types.
👉 If you add any transaction types be sure to update the conditional formatting dropdown use on the main Transactions sheet.
By default the following VAT rates are in this sheet:
Typically you would use the 20% rate for the sale of standard goods and most eBay fees. The 5% rate would be for the sale of reduced rated goods and the 0% rate would be for the sale of zero rated goods and a few eBay fee types.
Again if you need other VAT rates you can add them, just be sure to update the conditional formatting dropdown so that you can select them on the main transactions sheet.
You could either add individual orders to this sheet or you could enter summaries for each eBay Managed Payments payout. The latter is what most sellers choose to do and then they keep a copy of the payout report just in case they need it should HMRC request to see the individual transaction level data. We will focus on entering payout level data.
On the main transactions sheet there are 7 columns:
👉 Top tip - if you enter sales as a positive number and refunds and fees as a negative number then you will be able to easily sum up the values later.
You will need to download the eBay Payouts report and do a bit of filtering to gather all of the information you need to fill out this spreadsheet. Check out our article on which eBay reports to use for seller bookkeeping for more information.
Once you have filled in the spreadsheet for a period of time, say a financial year, then you may want to work out your profits for that period.
Since this spreadsheet does not take into account inventory purchases or stock firstly you would work out how much stock you sold during the period (your cost of goods sold).
To do that take a snapshot of your opening stock balance, add any stock purchases and then remove your closing stock balance. You should be left with the value of the stock you physically sold during this period.
Once you have your cost of goods sold figure then you can add that as the final line in the transactions sheet (as a negative value since it is a cost to your business).
Then just sum up the Net Amount column to see your bottom line net profits.
As you can see, even a simple enough spreadsheet becomes quite a lot of work when you consider the whole task in hand.
Most eBay sellers decide that this task is better to either outsource or automate.
Our advice would be this...if you're spending more than 2 hours per month accounting for your eBay sales then stop wasting your time. Spend you time on a task within your business that grows it not one that manages it.
Using something like Link My Books with Xero would enable you to automate the whole process and have you spending just a few minutes each month on your bookkeeping.
To start a free trial of Link My Books click here.