Bookkeeping Services for Etsy Sellers: Which One Is Best?

Etsy has carved out a unique niche in ecommerce, distinguishing itself from larger platforms like Amazon or eBay by focusing on individuality and craftsmanship.

Today, Etsy isn’t just a hub for handmade goods; it’s also a thriving marketplace for vintage items.

Sellers offer treasures from past decades — vintage clothing, antique home decor, retro collectibles, and classic accessories, all typically aged at least 20 years. 

Whether you’re into steampunk fashion, minimalist home decor, or eco-friendly products, there’s probably an Etsy store that caters precisely to your tastes.

But if you’re a seller on Etsy, there’s more to success than just offering great products. 

Now, passion and creativity may ignite your entrepreneurial journey, but understanding your financial landscape is what sustains it. 

That’s where doola Bookkeeping makes a significant difference. 

Consider signing up for a demo with doola to get in-depth insights into how effective bookkeeping can keep your Etsy finances in top shape.

But for now, you can just take a quick look at the bookkeeping universe as an Etsy seller and check out some of the top bookkeeping players in the market.

Most Important Features to Look for in an Etsy Bookkeeping Service

Now that you’ve got a glimpse of how a reliable bookkeeping service can transform your thriving Etsy business, it’s time to talk specifics. 

How do you find that bookkeeping service partner or provider that’s perfect for your Etsy store? 

Let’s break down the most important features you should look for when choosing your bookkeeping service.

1. Seamless Etsy Integration

Seamless integration with Etsy is non-negotiable. You want a bookkeeping service that syncs effortlessly with your Etsy shop. 

It should automatically import sales data, fees, taxes, and all those nitty-gritty details without you lifting a finger.

2. Real-Time Financial Insights

Think about it: wouldn’t it be great to see instantly how a particular sale impacts your bottom line? 

A good bookkeeping service provides detailed financial reports that keep you in the know, anytime, anywhere. 

Real time insights allow you to see the spike in revenue, adjust your marketing efforts on the fly, or even extend the sale if it’s performing exceptionally well.

You might notice that certain products are selling more than others, informing your future product development.

3. User-Friendly Interface

Look for a bookkeeping service with an intuitive, user-friendly interface. You need a bookkeeping dashboard that’s easy to navigate, with no confusing jargon or complicated processes. 

With a user-friendly interface, you can log in, click on the “Expenses” tab, and see a clear breakdown of your spending categories — materials, shipping supplies, marketing, etc. — without sifting through complicated menus or reports.

4. Scalability

Your Etsy shop might be a one-person show now, but who knows where you’ll be in a year? 

Choose a bookkeeping service that can scale with your business.

Today, you’re selling handmade candles from your kitchen. Tomorrow, you might have a team, a warehouse, and a product line expansion.

Your bookkeeping service should handle increased transactions, multiple income streams, and even payroll when the time comes. 

It should be able to integrate with other sales platforms if you decide to expand beyond Etsy.

5. Tax Preparation Support 

Taxes can be a nightmarish affair for small business owners. A good bookkeeping service that offers tax preparation support is worth its weight in gold.

Look for a bookkeeping service that categorizes expenses and tracks deductible items throughout the year effortlessly, so when tax season rolls around, you’re not diving into a drawer of receipts. 

6. Inventory Management Integration

Running out of your best-selling item is a missed opportunity. A bookkeeping service that integrates with inventory management helps you keep track of all of your items.

Your bookkeeping service should alert you when inventory is low, so you can restock before you miss out on sales.  

In a few cases, it might even forecast when you’ll need to reorder based on sales trends.

7. Multi-Currency Support 

Etsy is a global marketplace. If you’re selling internationally, multi-currency support is essential. 

Consider this scenario: you make a sale to someone in France. Your bookkeeping service should automatically convert the transaction into your home currency, accounting for exchange rates and fees.

This ensures your financial records accurately reflect your earnings, and you won’t be scratching your head over currency discrepancies.

8. Security Features

Your financial data is sensitive. Ensure the bookkeeping service has top-notch security measures in place. 

Security measures to look for include:

➡️ Encryption: Makes your data unreadable to unauthorized users, ensuring that even if intercepted, it cannot be understood.

➡️ Two-Factor Authentication: Adds an extra layer of security when logging in by requiring a second form of verification beyond just your password.

➡️ Regular Backups: Safeguards your data against unexpected losses by keeping copies that can be restored in case of system failures or data corruption.

➡️ Compliance Certifications (e.g., GDPR or SOC 2): Indicates adherence to high security standards, demonstrating that the service meets stringent data protection regulations. 

If your bookkeeping service uses 256-bit SSL encryption (the same level used by banks) and offers two-factor authentication, you are sorted. 

Even if someone guesses your password, they can’t access your account without the second verification step.

9. Customization Options

Every business is unique. Seek out a bookkeeping service that offers customizable features to suit your specific business needs. 

Perhaps you want to track expenses by project or product line. A customizable bookkeeping service allows you to create custom categories or tags. 

If you use a specific CRM or email marketing tool, the ability to integrate these can streamline your operations.

Maybe you prefer your reports in pie charts instead of bar graphs — the choice should be yours.

Our Top Choices for Etsy Bookkeeping Services in 2025

Ready to find out which are the top bookkeeping services that have all the key features that we just mentioned?

Here are our top picks, starting with doola.

1. doola Bookkeeping

If you’re searching for a bookkeeping service that’s as passionate about your business as you are, doola might just be your perfect match. 

Known for helping entrepreneurs with LLC formation and compliance, doola also offers bookkeeping services tailored to the needs of Etsy sellers.

Key Features:

✅ Seamless Etsy Integration: Automatically syncs your Etsy sales data, fees, and taxes without manual input.

✅ Real Time Financial Dashboards: Provides instant insights into your revenue, expenses, and profit margins.

✅ User-Friendly Interface: Designed with small business owners in mind, no accounting expertise required.

✅ Scalability: Supports business growth with features like payroll processing and multi-channel sales integration.

✅ Tax Preparation Support: Categorizes expenses,  tracks deductions, collaborates with tax professionals for easy filing.

✅ Dedicated Bookkeeper: Assigns a professional bookkeeper to manage your finances, categorize transactions and reconcile accounts.

✅ Inventory Management Integration: Helps you monitor stock levels to prevent stockouts.

✅ Multi-Currency Support: Handles international transactions with real time currency conversions.

✅ Security Features: Offers encryption, two-factor authentication, and regular data backups.

✅ Customization Options: Has different bookkeeping packages to suit your specific business needs.

Free Trial: 

Offers a 30-day free trial for the basic bookkeeping software

Pricing:

Plans start at $25 per month. Flexible pricing tiers to match your business size and needs.

Sign up for a quick demo

2. QuickBooks Online

Next is QuickBooks Online, the seasoned veteran in the accounting arena trusted by businesses of all sizes. 

With third-party integrations, QuickBooks connects to your Etsy shop, importing sales and expense data so you can skip the data entry drudgery.

Key Features:

✅ Etsy Integration: Connects via apps like OneSaas for automatic data syncing.

✅ Real Time Financial Tracking: Monitors income, expenses, and profitability from a sleek dashboard.

✅ Mobile App: Lets you access your financials on the go on an app.

✅ Scalability: Offers advanced features like inventory tracking, payroll services, and detailed financial reports as your business grows.

✅ Tax Preparation Tools: Calculates sales tax and tracks other deductible expenses.

✅ Security Measure: Follows data encryption and regular security updates.

Free Trial:

Offers a 30-day free trial to explore its robust features.

Pricing:

Plans start at $25 per month for the Simple Start plan. Various tiers to accommodate growing businesses.

3. Xero

Xero is a crowd favorite among small business owners for its intuitive interface and powerful features. Through apps like A2X, Xero integrates with your Etsy shop, ensuring your transaction data flows seamlessly into your accounting system.

Key Features:

✅ Etsy Integration: Connects via A2X for seamless data import, automating your bookkeeping process.

✅ Real Time Dashboards: Provides insights into cash flow, invoices, and bills, helping you stay on top of your finances.

✅ User-Friendly Interface: Easy navigation suitable for non-accountants, making bookkeeping less of a chore.

✅ Scalability: Offers upgrades as your business expands, including payroll services and project tracking.

✅ Automatic Bank Feeds: Links your bank accounts for live transaction updates, ensuring your records are always current.

✅ Multi-Currency Support: Handles over 160 currencies with real-time exchange rates, ideal for international sellers.

✅ Security Features: Includes two-step authentication and data encryption to safeguard your data.

Free Trial:

Provides a 30-day free trial to take it for a spin.

Pricing:

Plans start at $13 per month for the Early plan. Multiple plans to fit different business needs, with more features at higher tiers.

4. Bench Accounting

Just like doola, Bench Accounting offers personalized bookkeeping services, pairing you with a dedicated bookkeeper.

Key Features:

✅ Monthly Financial Statements: Income statements and balance sheets delivered monthly, providing clarity on your business performance.

✅ Tax-Ready Financials: Books prepared for tax season, with optional filing services to ease the burden.

✅ User-Friendly Platform: Communicate easily with your bookkeeping team via the Bench app, asking questions and getting updates.

✅ Scalability: Bookkeeping services adjust based on transaction volume, accommodating your business growth.

✅ Security Measures: Employs encryption and secure data storage to protect your information.

Free Trial:

Offers a 30 day free trial to experience their hands-on bookkeeping service.

Pricing:

Plans start at $299 per month when billed annually. Pricing varies based on monthly expenses and complexity, with custom quotes available.

5. Wave Accounting

For the budget-conscious or those just starting out, Wave Accounting provides a suite of free accounting tools.

Key Features:

✅ Free Accounting and Invoicing: Provides essential bookkeeping tools at no cost, perfect for small businesses and freelancers.

✅ Expense Tracking: Monitors and categorizes business expenses, helping you stay organized.

✅ Receipt Scanning: A mobile app allows you to digitize receipts, reducing paper clutter.

✅ Basic Inventory Tracking: Manages simple inventory needs, though not as advanced as some paid options.

✅ Security Features: Protects data with encryption and secure servers.

✅ Customization: Lets you create professional-looking invoices and estimates tailored to your brand.

Free Trial:

No trial needed. You can start using some of its basic features for free right away 

Pricing:

Free for accounting, invoicing, and receipt scanning.

Paid services for payroll (starting at $20 per month plus $6 per active employee) and payment processing (fees apply per transaction).

6. Synder

Rounding out our list with Synder, designed specifically for ecommerce businesses like yours.

Key Features:

✅ Direct Etsy Integration: Automatically records transactions, fees, and taxes, keeping your books accurate and up-to-date.

✅ Real Time Dashboards: Just like doola, Synder provides up-to-date financial metrics, helping you make informed decisions.

✅ Multi-Currency Support: Offers accurate conversions for international sales, essential for global sellers.

✅ User-Friendly Interface: Easy to set up and navigate without breaking a sweat, even if you’re new to bookkeeping software.

✅ Tax Compliance: Categorizes transactions for accurate tax reporting, simplifying tax season.

✅ Integrations: Connects with PayPal, Stripe, Shopify, Amazon, and more, consolidating your financial data.

✅ Security Measures: Offers data encryption and regular backups to protect your information.

Free Trial:

Offers a 7-day free trial to test the waters.

Pricing:

Plans start at $19 per month for the Starter plan. Different tiers based on transaction volume and required features.

Specific Bookkeeping Challenges and Considerations for Etsy Sellers

Let’s try to understand some of the unique bookkeeping challenges you might face as an Etsy seller. 

The goal of listing these challenges is to keep you prepared so you don’t go into panic mode when help is a little way off. 

Ready? Here you go!

1. Managing Multiple Income Streams

You’re not just selling products; you’re juggling various income streams.

There’s the revenue from product sales, of course, but also shipping fees you’ve collected, income from custom orders, perhaps even digital downloads or workshop tickets if you’re expanding your offerings.

Each of these income streams affects your finances differently. 

For instance, shipping fees might cover the cost of postage and packaging materials, but sometimes they might not, especially if rates change or if you underestimate the weight of a package. Custom orders might require a deposit, leading to partial payments that need tracking over time.

Keeping tabs on all these different income types can overwhelm you. If you don’t track them accurately, you might overestimate your profitability or run into cash flow issues.

2. Tracking Etsy Fees and Commissions

Etsy doesn’t just provide a platform out of the goodness of its heart — they charge for it. 

You’ve got listing fees every time you post a new product, transaction fees when you make a sale, and payment processing fees when customers pay through Etsy Payments. There might also be fees for Etsy Ads if you’re promoting your products.

These fees eat away at your profits. Individually, they might seem insignificant — a few cents here, a couple of dollars there — but they add up over time.

Ignoring them in your bookkeeping is like baking a cake and forgetting to account for the cost of the eggs and butter.

By meticulously tracking these small fees, you can accurately calculate your net income and adjust your pricing strategy if necessary.

3. Sales Tax Complexity

Sales tax — the bane of many small business owners’ existence.

In the US, sales tax laws vary by state. And if you’re selling to customers in multiple states, you might have a sales tax nexus in those states, requiring you to collect and remit taxes there.

Now, toss in international sales. If you’re shipping to customers in the European Union, you need to deal with VAT (Value-Added Tax), which has its own set of rules and rates.

Misunderstanding or overlooking these obligations can lead to compliance issues, fines, or back taxes.

4. Inventory Management

Your products don’t just magically appear for your customers when they want. You invest time, materials, and sometimes sweat, and tears into making them. 

Knowing how much each item costs to produce is crucial. This includes direct materials (like beads, thread, fabric), direct labor (your time, which has value!), and a portion of your overhead costs (like utilities and equipment depreciation).

Without tracking inventory costs and stock levels, you might price your items too low, thinking you’re making a profit when you’re not. 

For example, if a leather journal costs you $15 in materials and an hour of your time valued at $20, but you sell it for $30, you’re actually losing money when you factor in Etsy fees and shipping supplies.

Moreover, not knowing your stock levels can lead to overselling items you don’t have or running out of materials during peak demand, resulting in canceled orders and unhappy customers.

5. Expense Categorization

From shipping supplies to that fancy new laser cutter, your business expenses are varied. Misclassify these items and you could be leaving money on the table or, worse, raising red flags with the IRS.

For instance, office supplies are deductible in a different way than capital expenses like equipment purchases.

Misclassifying expenses might also mean you miss out on deductions or, conversely, claim deductions you’re not entitled to, which could trigger an audit.

6. Cash Flow Management

Etsy deposits, delayed payments, refunds — it can create a cash flow rollercoaster.

Without a clear picture of your inflows and outflows, you might find yourself in a tight spot when it’s time to reorder materials or invest in marketing.

7. Time Constraints

We know, you’re wearing all the hats — creator, marketer, customer service rep, and fulfillment specialist.

And sometimes, bookkeeping often gets pushed to the bottom of the to-do list because, we all know, it’s not as exciting as designing a new product line or engaging with your customers on social media.  

But neglecting it can lead to costly mistakes down the line and result in late tax filings, missed deductions, or inaccurate financial insights that can hinder your business decisions.

Benefits of Outsourced Bookkeeping for Etsy Shops

So, you’ve just learned about the challenges that come with managing your own bookkeeping as an Etsy seller. 

Feeling a bit overwhelmed? Don’t worry, we have solutions for you.

You don’t have to handle this book balancing act on your own.

If hiring a full-time bookkeeper isn’t feasible for your budget (and let’s be honest, that’s the case for many of us), outsourcing your bookkeeping to a dedicated professional could be the game-changer you need.

Remember, by choosing to outsource your bookkeeping, you’re not just offloading a tedious task — you’re investing in the efficiency and growth of your business. 

Here’s what you’ll gain by outsourcing your bookkeeping services:

1. Expertise at Your Fingertips

Professional bookkeepers know the intricacies of the finance world. They’re up-to-date on tax laws, understand the nitty-gritty of Etsy’s fee structures, and can navigate the murky waters of sales tax effortlessly. 

Think of them as seasoned captains ready to steer your bookkeeping ship through any stormy seas.

2. Time Savings

Imagine reclaiming those hours spent wrestling with spreadsheets and instead focusing on designing that new product line you’ve been dreaming about.

Outsourced bookkeeping frees you up to do what you do best, while they handle the number crunching part.

3. Accurate Financial Records

Errors in bookkeeping can cost you time, energy and resources.

Professionals reduce the risk of mistakes, ensuring your books and records are accurate. That means you can make better business decisions based on solid data, not guesstimates scribbled on a notepad.

4. Stress Reduction

Financial stress is a creativity killer. Knowing that your books are in capable hands can alleviate that nagging worry at the back of your mind.

It’s like the peace you feel when you finally declutter your workspace — not exaggerating at all!

5. Scalability

As your Etsy shop grows, so do your bookkeeping needs.

Outsourced experts are trained to handle increased transaction volumes, additional income streams, and more complex financial scenarios without missing any minute detail.

6. Tax Compliance and Optimization

A professional bookkeeper ensures you’re compliant with all tax regulations, helping you avoid penalties.

Plus, they can identify deductions you might have missed, potentially saving you a chunk of change come tax season.

7. Financial Insights

Beyond just tracking numbers, a good bookkeeper can provide valuable insights into your business’s financial health. They can highlight trends, flag concerns, and even suggest areas for improvement.

Bookkeeping Tips for Etsy Sellers

Whether you decide to outsource or tackle bookkeeping yourself, there are some best practices that can make the process smoother and straightforward.

1. Separate Business and Personal Finances

First things first: open a separate business bank account for your Etsy shop.

Mixing personal and business finances is like trying to bake and cook dinner in the same pan — not recommended. This separation simplifies tracking and is crucial for tax purposes.

2. Keep Receipts Organized

Digital or physical, keep all your receipts in one place. Use apps or cloud storage to scan and categorize them.

This habit saves time during tax season and ensures you don’t miss out on deductible expenses.

3. Regularly Reconcile Accounts

Set aside time weekly or monthly to reconcile your accounts. Match your Etsy deposits with your bank statements, track expenses, and make sure everything lines up.

Remember, it’s easier to catch and correct discrepancies sooner rather than later.

4. Use Accounting Software

Invest in accounting software that integrates with Etsy.

Tools like doola Bookkeeping, QuickBooks, or Xero can automate data entry, generate reports, and simplify the entire bookkeeping process.

5. Understand Your Cost of Goods Sold (COGS)

Know exactly how much it costs to make each product, including materials, labor, and overhead.

This knowledge ensures your pricing covers costs and generates profit. Remember, sales volume is great, but profitability is king.

6. Stay on Top of Sales Tax

Research the sales tax requirements for your state and any states where you have a significant customer base.

Use tools or services that calculate and remit sales tax for you, so you stay compliant without the headache.

7. Plan for Taxes

Set aside a percentage of your income for taxes. It might sting a little now, but come tax season, you’ll be glad you did.

Consider it an investment in your peace of mind.

8. Monitor Cash Flow

Keep an eye on your cash flow to ensure you have enough liquidity to cover expenses. Forecasting can help you anticipate slow periods and plan accordingly.

9. Review Financial Reports

Regularly review income statements, balance sheets, and cash flow statements. These reports provide valuable insights into your business’s performance and can guide your strategic decisions. 

10. Don’t Be Afraid to Ask for Help

If bookkeeping feels overwhelming, don’t hesitate to seek assistance.

Whether it’s hiring a professional or reaching out to fellow Etsy sellers for advice, getting support can make a huge difference in your business.

Streamline Your Bookkeeping Journey With doola

In the end, bookkeeping doesn’t have to be that nagging thorn in your entrepreneurial side.

With the right approach and the right tools — or better yet, with a pro like doola in your corner — you can master your finances and watch your Etsy empire flourish.

You’re in this business because you love what you do, right? So let’s keep it that way by making the numbers work for you, not against you.

Ready to turn those bookkeeping woes into a thing of the past?

Book a demo with us today or avail our free trial, and discover everything you need to keep your business’s finances running smoothly.

FAQs

1. Why do Etsy sellers need bookkeeping services?

Bookkeeping services help Etsy sellers manage their finances by tracking income, expenses, and taxes.

This ensures accurate financial records, aids in tax compliance, and provides insights into your business’s profitability — allowing you to focus on creating and selling your products.

2. Which are the best bookkeeping services for Etsy sellers?

Some of the top bookkeeping services for Etsy sellers include doola, QuickBooks Online, Xero, Bench Accounting, Wave Accounting, and Synder.

These services offer features tailored to small businesses and integrate with Etsy to simplify financial management.

3. Can bookkeeping services help me track my inventory for Etsy?

Yes, many bookkeeping services offer inventory management features or integrate with inventory tracking tools.

This helps you monitor stock levels, manage costs of goods sold, and ensure you never run out of your best-selling items.

4. How much do bookkeeping services typically cost for Etsy sellers?

The cost of bookkeeping services varies depending on the provider and the features you need.

Prices can range from free options like Wave Accounting to monthly subscriptions starting around $25 with doola, up to higher-end services like Bench Accounting starting at $299 per month.

Always check the latest pricing on the provider’s website.