Running an Etsy shop can be a fulfilling and exciting experience, but it also comes with a fair share of challenges. One of those challenges is keeping track of your finances. As an Etsy seller, you need to keep track of your expenses, sales, and taxes, and this can be overwhelming, especially if you’re doing it manually. Fortunately, there are several accounting software solutions that can help you manage your finances more efficiently. In this article, we’ll take a closer look at the best accounting software options for Etsy sellers.
QuickBooks Online
Overview
QuickBooks Online is one of the most popular accounting software options available, and for good reasons. It’s a cloud-based software that allows you to track your income and expenses, create invoices, and manage your taxes. QuickBooks Online also integrates with Etsy, making it easier for you to track your Etsy sales, fees, and expenses.
Features
Some of the key features of QuickBooks Online include:
- Automatic bank and credit card syncing
- Customizable invoices and estimates
- Tracking of income and expenses
- Ability to manage sales tax
- Integration with Etsy, PayPal, and other e-commerce platforms
Pricing
QuickBooks Online offers three pricing tiers: Simple Start, Essentials, and Plus. The Simple Start plan starts at $25 per month and includes features like income and expense tracking, invoicing, and sales tax management. The Essentials plan costs $40 per month and includes all the features of Simple Start, plus bill management and time tracking. The Plus plan costs $70 per month and includes all the features of Essentials, plus inventory tracking and project profitability tracking.
Wave
Overview
Wave is a free accounting software that’s specifically designed for small business owners and freelancers. It’s a cloud-based software that allows you to track your income and expenses, create invoices, and manage your taxes. Wave also integrates with Etsy, making it easier for you to track your Etsy sales, fees, and expenses.
Features
Some of the key features of Wave include:
- Automatic bank and credit card syncing
- Customizable invoices and estimates
- Tracking of income and expenses
- Ability to manage sales tax
- Integration with Etsy and PayPal
Pricing
Wave is completely free to use, but they do offer paid add-ons like payroll and credit card processing for an additional fee.
Xero
Overview
Xero is a cloud-based accounting software that’s designed for small businesses. It’s a powerful software that allows you to track your income and expenses, create invoices, and manage your taxes. Xero also integrates with Etsy, making it easier for you to track your Etsy sales, fees, and expenses.
Features
Some of the key features of Xero include:
- Automatic bank and credit card syncing
- Customizable invoices and estimates
- Tracking of income and expenses
- Ability to manage sales tax
- Integration with Etsy, PayPal, and other e-commerce platforms
Pricing
Xero offers three pricing tiers: Early, Growing, and Established. The Early plan starts at $9 per month and includes features like invoicing, expense tracking, and bank connections. The Growing plan costs $30 per month and includes all the features of Early, plus multi-currency support and project tracking. The Established plan costs $60 per month and includes all the features of Growing, plus inventory tracking and expense claims.
FreshBooks
Overview
FreshBooks is a cloud-based accounting software that’s designed for small businesses and freelancers. It’s a user-friendly software that allows you to track your income and expenses, create invoices, and manage your taxes. FreshBooks also integrates with Etsy, making it easier for you to track your Etsy sales, fees, and expenses.
Features
Some of the key features of FreshBooks include:
- Automatic bank and credit card syncing
- Customizable invoices and estimates
- Tracking of income and expenses
- Ability to manage sales tax
- Integration with Etsy, PayPal, and other e-commerce platforms
Pricing
FreshBooks offers three pricing tiers: Lite, Plus, and Premium. The Lite plan starts at $15 per month and includes features like invoicing, time tracking, and expense tracking. The Plus plan costs $25 per month and includes all the features of Lite, plus proposals and estimates. The Premium plan costs $50 per month and includes all the features of Plus, plus team time tracking and project profitability tracking.
Zoho Books
Overview
Zoho Books is a cloud-based accounting software that’s designed for small businesses. It’s a powerful software that allows you to track your income and expenses, create invoices, and manage your taxes. Zoho Books also integrates with Etsy, making it easier for you to track your Etsy sales, fees, and expenses.
Features
Some of the key features of Zoho Books include:
- Automatic bank and credit card syncing
- Customizable invoices and estimates
- Tracking of income and expenses
- Ability to manage sales tax
- Integration with Etsy, PayPal, and other e-commerce platforms
Pricing
Zoho Books offers three pricing tiers: Basic, Standard, and Professional. The Basic plan starts at $9 per month and includes features like invoicing, expense tracking, and bank connections. The Standard plan costs $19 per month and includes all the features of Basic, plus purchase order and sales order management. The Professional plan costs $29 per month and includes all the features of Standard, plus inventory management and project management.
FAQ
What is accounting software?
Accounting software is a type of software that helps businesses and individuals manage their financial transactions, including income, expenses, and taxes.
Do I need accounting software for my Etsy shop?
While you can manage your finances manually, accounting software can make the process more efficient and accurate, especially as your business grows.
Can I integrate accounting software with Etsy?
Yes, most accounting software options offer integration with Etsy, making it easier for you to track your Etsy sales and expenses.
Is accounting software expensive?
Accounting software can be expensive, but there are many affordable options available, including some free options.
Can accounting software help me manage my taxes?
Yes, most accounting software options offer tax management features, including the ability to calculate and file your taxes.
Is it easy to use accounting software?
Most accounting software options are designed to be user-friendly, with intuitive interfaces and helpful customer support.
Do I need to be tech-savvy to use accounting software?
While some accounting software options may require some technical knowledge, most are designed to be accessible to users of all technical skill levels.
Can I try accounting software before committing to a subscription?
Many accounting software options offer free trials or demos, allowing you to test out the software before committing to a subscription.
Pros
Using accounting software can help you manage your finances more efficiently, save time, and reduce errors. Additionally, many accounting software options offer integration with e-commerce platforms like Etsy, making it easier for you to track your sales and expenses.
Tips
- Choose an accounting software that offers integration with Etsy or your e-commerce platform of choice.
- Consider your budget when choosing an accounting software, but also consider the features you need.
- Take advantage of free trials or demos to test out accounting software options before committing to a subscription.
- Keep your accounting software up-to-date to ensure accuracy and avoid errors.
- Don’t be afraid to seek help or support if you’re struggling with your accounting software.
Summary
Managing your finances as an Etsy seller can be challenging, but accounting software can help make the process more efficient and accurate. Some of the best accounting software options for Etsy sellers include QuickBooks Online, Wave, Xero,