Streamline Your Etsy Shop Finances with QuickBooks Online Integration

Table of Contents

1. Introduction
2. Benefits of the QuickBooks Online and Etsy Integration
3. How to Set Up the Sync with Etsy App
4. Connecting Your QuickBooks Online Account with Etsy
5. Choosing Accounts for Deposits and Charges
6. Importing Transactions from Etsy into QuickBooks
7. Categorizing Deposits and Charges
8. Matching Deposits in QuickBooks with Etsy
9. Reviewing the Activity in the Etsy Bank Register
10. Comparing Activity in QuickBooks with Etsy
11. Recording Order Details and Fees
12. Viewing the Integration in Financial Statements
13. Conclusion

Introduction

Are you an Etsy seller looking for an efficient way to manage your bookkeeping? Look no further! QuickBooks Online has just released a new integration that combines their software with your Etsy shop, allowing for real-time syncing of sales and fees. In this article, we will guide you through the setup and usage of this integration, showcasing the benefits and providing step-by-step instructions. With this seamless integration, you can streamline your bookkeeping processes and have a clear picture of your Etsy shop's financials.

Benefits of the QuickBooks Online and Etsy Integration

The integration between QuickBooks Online and Etsy offers a range of benefits for Etsy sellers. Here are a few key advantages:

1. Real-time syncing: With this integration, all of your Etsy sales and fees are automatically brought over to QuickBooks Online in real-time. You no longer have to manually enter data or worry about discrepancies between platforms.

2. Effortless setup: Setting up the Sync with Etsy app is quick and easy. In just a few simple steps, you can connect your QuickBooks Online account with your Etsy shop and start syncing your financial data.

3. Free of charge: The Sync with Etsy app is absolutely free for US-based Etsy sellers. This means you can take advantage of the integration without incurring any additional costs.

4. Improved accuracy: By syncing your Etsy data with QuickBooks Online, you can ensure greater accuracy in your financial records. The integration will capture all sales, fees, and expenses, giving you a comprehensive view of your shop's financial health.

5. Time savings: With the automatic syncing of data, you can save time on manual data entry, allowing you to focus on growing your Etsy business. The integration eliminates the need for double-checking and reconciling data between platforms.

How to Set Up the Sync with Etsy App

To get started with the QuickBooks Online and Etsy integration, follow these simple steps:

Step 1: Search for the Sync with Etsy App

1. Log into your QuickBooks Online account and navigate to the left sidebar.
2. Click on "Apps" and search for "Sync with Etsy."
3. Look for the app developed by Intuit, as they have created a superior product for this integration.

Step 2: Connect the Sync with Etsy App to Your Etsy Shop

1. Click the "Get the App Now" button to start the connection process.
2. Sign into your Etsy account when prompted and grant the app access.
3. Note that, at the moment, the integration is only available for US-based Etsy shops. International support may be added in the future.

Step 3: Choose Accounts for Deposits and Charges

1. Select the etsy shop with the most activity. The Sync with Etsy app can only be connected to one Etsy shop at a time.
2. Determine the account your deposits go to. In most cases, this will be one of your checking accounts.
3. Identify the account your charges go to. This could be your business checking account or a specific credit card, depending on your Etsy activity.

Step 4: Set the Start Date for Importing Transactions

1. Choose a start date for importing all transactions from Etsy into QuickBooks. You can go as far back as January 1st, 2020.
2. Save your settings and allow the app to start syncing the data.

Connecting Your QuickBooks Online Account with Etsy

Once you have set up the Sync with Etsy app, your QuickBooks Online account will be connected to your Etsy shop. Here's how you can verify the connection:

1. Log into your QuickBooks Online account.
2. Go to the Banking tab and select your checking account where your Etsy deposits land.
3. Check if the integration has brought in any recent deposits from Etsy. You should see the deposits listed in the account's register.

Congratulations! Your QuickBooks Online account is now connected to your Etsy shop, and the integration is up and running. In the next sections, we will walk you through the various features and functionalities of this integration.

Choosing Accounts for Deposits and Charges

To ensure accurate categorization of your Etsy transactions in QuickBooks Online, you need to choose accounts for deposits and charges. Here's how you can do it:

Deposits

1. Open the Sync with Etsy app in your QuickBooks Online account.
2. Select the bank account that corresponds to your Etsy deposits.
3. This account is where the funds from your Etsy sales will be deposited.

Charges

1. Choose the account where your charges go, such as advertising costs or refunds.
2. This account represents any negative amounts owed to Etsy.

By selecting the appropriate accounts, you can ensure that your Etsy transactions are accurately categorized in QuickBooks Online.

Importing Transactions from Etsy into QuickBooks

After setting up the integration, you need to import your Etsy transactions into QuickBooks Online. Here's how to do it:

1. Open the Sync with Etsy app in your QuickBooks Online account.
2. Select a start date for importing transactions. This can be as far back as January 1st, 2020.
3. Click "Save" to initiate the import process.
4. Wait for the app to import all the transactions from Etsy into QuickBooks Online.

While the import process is underway, it may take some time for all the transactions to be brought into QuickBooks. Be patient and allow the app to complete its work.

Categorizing Deposits and Charges

Once the transactions are imported from Etsy into QuickBooks Online, you need to categorize the deposits and charges. Here's how you can do it:

Deposits

1. Open your QuickBooks Online account and navigate to the Etsy bank register.
2. Review the deposits listed in the register, ensuring they correspond to your Etsy transactions.
3. For deposits that occurred before the integration, select the correct account for categorization.
4. Click "Add" to categorize the deposit to the appropriate account.

Charges

1. Review the charges in the Etsy bank register.
2. Separate out any charges that are not related to the integrated Etsy shop.
3. Categorize the charges to the correct account, such as your business checking account or a credit card.

By categorizing the deposits and charges accurately, you can maintain the integrity of your financial records in QuickBooks Online.

Matching Deposits in QuickBooks with Etsy

With the integration in place, QuickBooks Online now brings in deposits from Etsy, allowing you to match them easily. Here's how:

1. Navigate to the Etsy bank register in your QuickBooks Online account.
2. Look for deposits that have the option to "match" instead of choosing a category.
3. Click "match" to reconcile the deposit with its corresponding transaction in Etsy.

Matching deposits simplifies the bank feed categorization process, ensuring accurate and efficient record-keeping in QuickBooks Online.

Reviewing the Activity in the Etsy Bank Register

To monitor the integration's activity and ensure accurate recording of your Etsy transactions, review the Etsy bank register in QuickBooks Online. Here's how:

1. Access the bank register created for your Etsy integration.
2. Review the activity in the register, including sales, fees, advertising costs, and refunds.
3. Compare the activity in QuickBooks Online with your Etsy payment account to ensure consistency.
4. Verify that the running balance in QuickBooks Online corresponds to your Etsy balance.

By regularly reviewing the Etsy bank register, you can stay informed about your Etsy shop's financial activity and identify any discrepancies that may require further attention.

Comparing Activity in QuickBooks with Etsy

To ensure the accuracy of your financial records, it's essential to compare the activity in QuickBooks Online with your Etsy account. Here's how:

1. Open your Etsy account and navigate to the finances section.
2. Compare the sales, fees, and other transactions listed in Etsy with what is recorded in QuickBooks Online.
3. Pay attention to the order in which transactions are listed, as it may differ between platforms.
4. Verify that the running balances in both platforms align.

By comparing the activity between QuickBooks Online and Etsy, you can identify any discrepancies and ensure the integration is functioning correctly.

Recording Order Details and Fees

One of the advantages of the QuickBooks Online and Etsy integration is the ability to record detailed order information and fees. Here's how it works:

1. Access the order details in your Etsy account.
2. Identify the sale, fees, and order processing charges associated with each order.
3. In QuickBooks Online, create separate entries for the sale, fees, and order processing charges.
4. This level of detail allows for accurate financial statements and better insight into your Etsy shop's profitability.

By recording order details and fees, you can have a clear picture of your Etsy shop's financial performance and make informed decisions.

Viewing the Integration in Financial Statements

To get a comprehensive view of your Etsy shop's financials, you can generate financial statements in QuickBooks Online. Here's how it looks:

Profit and Loss Statement

1. Run the profit and loss statement for the desired period.
2. Review the income section to see your Etsy shop sales and other income sources.
3. Examine the expense section to view the breakdown of fees and other expenses.

Balance Sheet

1. Generate a balance sheet report as of a specific date.
2. Look for the "Etsy Bank" account created by QuickBooks Online.
3. The balance in this account represents the funds held by Etsy, waiting for deposit into your chosen account.

By reviewing financial statements, you can accurately assess your Etsy shop's profitability, track expenses, and make informed financial decisions.

Conclusion

The integration of QuickBooks Online and Etsy provides a streamlined solution for managing your Etsy shop's financials. By following the simple setup process, you can sync your sales, fees, and expenses in real-time, eliminating the need for manual data entry. With accurate records and comprehensive financial statements, you can gain valuable insights into your Etsy business and make informed decisions for growth and profitability.

To take advantage of this game-changing integration, follow the step-by-step instructions provided in this article. Say goodbye to tedious bookkeeping and start enjoying the benefits of the QuickBooks Online and Etsy integration today!