Running an Etsy shop can be a rewarding but challenging endeavor. Whether you’re selling handmade crafts, vintage items, or digital goods, keeping track of your finances is essential. When I first worked with an Etsy seller, they were manually tracking every sale, shipping fee, and expense, which quickly became overwhelming as their business grew. That’s where the right bookkeeping software comes in—it automates financial tracking, saves you time, and helps you stay organized, especially come tax season.
For Etsy sellers, you need software that can sync with your Etsy store, track sales and expenses, and help you stay on top of taxes. Here’s a breakdown of the best bookkeeping software for Etsy sellers to keep your business financially healthy.
Best Bookkeeping Software for Etsy Sellers
1. FreshBooks
Why It’s Perfect for Etsy Sellers
- Expense Tracking: FreshBooks makes it easy to track your expenses, from shipping fees to materials and Etsy transaction fees.
- Time-Saving Automation: You can connect FreshBooks with Etsy using integration tools like A2X or Synder to automatically import your sales and expense data.
- Invoicing & Payments: If you offer custom products or services alongside your Etsy shop, FreshBooks makes it easy to send professional invoices and track payments.
- Mobile Access: Track your business on the go with the FreshBooks app, allowing you to manage your bookkeeping from anywhere.
Pros
- Extremely easy to use, even if you’re new to bookkeeping.
- Automatically imports Etsy sales and expenses (via integrations).
- Great for tracking Etsy-related expenses like shipping, materials, and Etsy fees.
Cons
- Etsy integration requires a third-party app.
- Limited inventory tracking features for Etsy sellers with large product catalogs.
Best For: Small-to-medium Etsy sellers who need simple, automated bookkeeping with great expense tracking.
2. QuickBooks Online
Why It’s a Powerhouse for Etsy Sellers
- Etsy Integration: QuickBooks Online can sync directly with Etsy through third-party apps like A2X or QuickBooks Connector, automatically pulling in your sales and expenses.
- Inventory Management: If you manage a large Etsy shop with multiple products, QuickBooks has robust inventory tracking, helping you manage stock levels and costs.
- Expense and Profit Tracking: Easily track your profits, expenses, and tax obligations, ensuring that you always know how your business is performing.
- Mileage Tracking: Etsy sellers who travel for craft fairs or supply runs will appreciate QuickBooks’ built-in mileage tracker for tax deductions.
Pros
- Direct integration with Etsy via third-party tools.
- Advanced reporting features for detailed financial insights.
- Includes inventory tracking and expense management.
Cons
- Monthly subscription starts at $25, which can be pricey for new sellers.
- More complex than simpler software options, with a steeper learning curve.
Best For: Etsy sellers who manage a large inventory or need more detailed financial reporting and tax preparation.
3. GoDaddy Online Bookkeeping
Why It’s Tailored for Etsy Sellers
- Direct Etsy Integration: GoDaddy Online Bookkeeping directly syncs with your Etsy store, automatically importing sales, expenses, and fees, without needing third-party apps.
- Tax-Friendly: It automatically calculates your estimated taxes and helps organize your Schedule C form, making tax season less stressful.
- Real-Time Profit Tracking: Instantly see your net profit after Etsy fees, shipping, and material costs, so you always know how your shop is performing.
Pros
- Direct integration with Etsy, no third-party apps required.
- Prepares for tax season by tracking income and expenses for you.
- Simple setup, designed for e-commerce sellers like those on Etsy.
Cons
- Fewer advanced features compared to QuickBooks or FreshBooks.
- Limited customization for reporting and tracking.
Best For: Small Etsy sellers looking for a simple, affordable, and direct bookkeeping solution.
4. Wave
Why It’s a Great Free Option for Etsy Sellers
- Cost-Effective: Wave offers free accounting software, which is perfect for Etsy sellers who are just starting out or have a tight budget.
- Easy Expense Tracking: You can manually import Etsy sales and expenses or connect your bank and PayPal accounts to track transactions related to your Etsy business.
- Invoicing: Like FreshBooks, Wave also offers free invoicing, making it easy to manage additional services or custom orders outside Etsy.
Pros
- Completely free for bookkeeping and invoicing.
- User-friendly and easy to set up for small businesses.
- Perfect for smaller Etsy sellers who don’t need advanced features.
Cons
- No direct Etsy integration (you’ll need to manually track sales or connect PayPal).
- Limited features compared to paid options like FreshBooks or QuickBooks.
Best For: Etsy sellers on a budget who need basic bookkeeping and expense tracking without a monthly subscription.
5. Xero
Why It’s a Solid Choice for Growing Etsy Shops
- Inventory Tracking: Xero offers excellent inventory management, allowing you to track stock levels and cost of goods sold (COGS), which is crucial for product-heavy Etsy shops.
- Etsy Integration: While Xero doesn’t directly integrate with Etsy, you can sync it via tools like A2X to pull in your sales and transaction data.
- Multi-Currency Support: If you sell internationally on Etsy, Xero supports multi-currency transactions, making it easy to manage global sales.
Pros
- Great for Etsy sellers with growing inventories.
- Affordable pricing (starting at $13/month).
- Strong inventory and expense tracking features.
Cons
- No direct Etsy integration (requires a third-party app).
- Can be overwhelming for beginners due to its advanced features.
Best For: Etsy sellers with growing inventories and international sales who need robust inventory management and bookkeeping.
How to Choose the Right Bookkeeping Software for Your Etsy Shop
Here are some key factors to consider when selecting bookkeeping software for your Etsy business:
- Etsy Integration: Direct integration with Etsy saves you a ton of time by automatically pulling in your sales and expenses. Look for software that can sync with Etsy through third-party apps.
- Expense Tracking: Your software should help you track expenses like shipping, materials, and Etsy fees. This is especially important for tax deductions.
- Inventory Management: If you have a large product catalog, choose software that helps manage your inventory and cost of goods sold (COGS).
- Tax Preparation: Etsy sellers face unique tax challenges, so make sure your bookkeeping software helps with sales tax, self-employment tax, and filing a Schedule C form.
- Ease of Use: You don’t want to spend more time on bookkeeping than you have to, so look for software that’s intuitive and easy to use.
Conclusion: FreshBooks is the Top Choice
For Etsy sellers, FreshBooks offers the best combination of ease of use, powerful expense tracking, and automation through third-party Etsy integrations. It’s designed for small business owners and solopreneurs, making it perfect for Etsy sellers who want to simplify their bookkeeping while focusing on growing their shop.
While QuickBooks Online and GoDaddy Online Bookkeeping provide strong integration and features, FreshBooks stands out for its user-friendliness and ability to save you time with automated workflows. Whether you’re just starting or managing a growing Etsy store, FreshBooks will help you stay on top of your finances without getting bogged down in complexity.