Etsy Bookkeeping Software: Best Accounting Software for Etsy Sellers
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Fees
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Next month Estimate
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In short
There is no single Etsy bookkeeping tool, because Etsy sellers have three separate jobs. For the books and the tax return, QuickBooks Online Simple Start at $38 a month or Wave with its no-cost Starter tier both work, but neither connects to Etsy natively. To get Etsy sales into QuickBooks or Xero split correctly into gross sales and fees, you need a connector such as A2X at $29 a month per sales channel. For materials, inventory and cost of goods sold, Stocksmith, which is the product formerly sold as Craftybase, starts at $99 a month. The one number none of them show you on its own is what Etsy deducted before the deposit landed, which is what an income tracker such as Earnly covers from $12 a month. The mistake that costs Etsy sellers real money is recording the bank deposit as income, because Etsy reports your gross to the IRS, not your deposit.
Last updated August 2026
The honest read
Etsy bookkeeping goes wrong in one specific place, and it is not the place most guides talk about. It is the deposit. When Etsy pays you $412.60 on a Monday, that figure is already net. Etsy has taken $0.20 for each listing, 6.5% of the transaction, roughly 3% plus $0.25 to process the payment, and on some orders another 12% or 15% for Offsite Ads. The gross might have been $520. Your accounting software reads a bank feed, the bank feed knows one number, and so the ledger records $412.60 of income. That is where the trouble starts, because Etsy does not report $412.60 to the IRS. Etsy reports gross. Form 1099-K carries your unadjusted gross sales for the year, before any fee, refund or shipping label cost is subtracted. If your Schedule C shows total receipts built from net deposits, it will be thousands of dollars lower than the 1099-K the IRS already has on file, and that mismatch is the single most common reason an otherwise honest Etsy seller gets a letter. The correct treatment is to report the gross as income and then deduct the Etsy fees as a business expense, which lands you at the same taxable profit but reconciles cleanly. Doing that requires knowing the gross, and the gross is precisely what your bank feed threw away. This is also why so many Etsy sellers discover that QuickBooks alone does not finish the job. QuickBooks Online has no native Etsy connection. You can import a CSV by hand every month, or you can add a connector: A2X at $29 a month per sales channel is the established option, and it posts a summarized journal entry per payout that splits gross sales, fees, refunds and sales tax so the deposit reconciles to the penny against your bank. Link My Books and Taxomate compete in the same slot, and both publish comparisons of each other that should be read with the source in mind. Sellers of handmade or made-to-order goods have a second problem on top: inventory and cost of goods sold. If you buy silver wire, resin, blanks or fabric and turn them into finished products, your material cost is not deductible when you buy it, it flows through inventory and becomes cost of goods sold when the item sells. General accounting software will not calculate that for you across dozens of recipes and component parts. Stocksmith is the purpose-built option, and worth knowing before you go looking for it: the product was sold as Craftybase for years and rebranded, so craftybase.com now redirects to stocksmith.io. Most Etsy bookkeeping roundups still list it under the old name and the old entry price. On the vendor pricing page in August 2026 the plans shown were Indie at $99, Business at $199 and Growth at $349 a month, which is meaningfully higher than the sub-$50 entry tier that third-party directories still quote. Where Earnly sits in this stack is narrow and worth stating plainly. It is not accounting software. It does not keep a ledger, does not track expenses, does not calculate cost of goods sold and does not file anything. What it does is show every payout from Etsy and eleven other platforms on one board as gross, fees and take-home per source, with a payout calendar and a next-month forecast that is always labeled an estimate, from $12 a month. For a seller running Etsy alongside a Shopify store, a Gumroad shop or a Patreon, that is the view that tells you which channel is actually worth the hours, and it is the number your bookkeeping tool needs handed to it rather than the one it can find by itself.
Published prices
Etsy bookkeeping software compared, by the job it does
US list prices as published in August 2026. These tools are not really competitors, because they solve different parts of the same problem. Most working Etsy sellers end up with two of them rather than one.
| Tool | Entry price | The job it does | Worth knowing |
|---|---|---|---|
| Wave | $0 Starter, $16/mo Pro | Double-entry books with no subscription | No Etsy connection, manual or CSV entry |
| Earnly | $12/mo Solo | Etsy gross, fees and take-home per payout | Income only, no expenses, ledger or filing |
| Zoho Books | $20/mo Standard | Low-cost books inside a wider suite | Extra seats about $2.50/user/mo |
| QuickBooks Solopreneur | $20/mo | Schedule C and quarterly estimates | Single user, not a full ledger |
| FreshBooks | $23/mo Lite | Invoicing custom and wholesale orders | Extra team members cost $11/mo each |
| A2X | $29/mo per channel | Splitting Etsy payouts into gross and fees | A connector, not accounting software |
| QuickBooks Online | $38/mo Simple Start | A real ledger your CPA already knows | No native Etsy integration |
| Stocksmith (was Craftybase) | $99/mo Indie | Materials, inventory and cost of goods sold | Entry price rose after the rebrand |
A2X and Stocksmith figures were taken from the vendor pricing pages in August 2026. A2X charges per sales channel, so Etsy plus Shopify is two subscriptions. Third-party directories still list Craftybase with a Studio plan near $49, which did not appear on the Stocksmith pricing page at the time of writing, so treat older roundups with caution. Xero is a common pick in this category, but published US figures disagreed across sources, so no price is quoted here rather than printing one we cannot stand behind.
Published prices
What Etsy deducts before the deposit reaches your bank
This is the gap between your gross sales and your bank deposit, and it is the reason a bank feed alone cannot produce a Schedule C that reconciles to your 1099-K. Figures are from Etsy's published US fee schedule in August 2026.
| Charge | Rate | When it applies |
|---|---|---|
| Listing fee | $0.20 per listing | On listing and again every 4 months on renewal |
| Transaction fee | 6.5% of the order total | Every sale, including the shipping you charge |
| Payment processing | About 3% plus $0.25 in the US | Every sale paid through Etsy Payments |
| Offsite Ads | 12% or 15% of the order | Only on orders that came from an Etsy-bought ad |
| Etsy Ads | Your chosen daily budget | Optional, billed whether or not the click converts |
| Shipping labels | Cost of the label | Deducted from your balance, not billed separately |
Offsite Ads is 15% for shops under $10,000 in the prior 12 months and 12% once you pass that, and participation is mandatory above the threshold. Etsy does set a minimum deposit amount that varies by country but does not publish the US figure, so no number is given here. Every charge in this table happens before the money reaches your bank, which is exactly why bookkeeping software cannot see any of it.
Why your Etsy deposit will never match your 1099-K
This is worth being precise about, because getting it wrong is expensive and getting it right is straightforward. Form 1099-K reports gross payment volume. Not profit, not net of fees, not net of refunds, and not net of the shipping labels you bought. If a customer paid $50 and Etsy passed you $41 after fees, the 1099-K counts $50. If that customer then returned the item, the 1099-K still counts the original $50, because the refund is a separate transaction. Add a year of that up and the form Etsy files with the IRS can easily be 20% higher than the total of your bank deposits. The IRS matches that form against the gross receipts line on your Schedule C. So the correct bookkeeping is: record gross sales as income, then record Etsy fees, refunds, shipping label costs and advertising as separate deductible expenses. Your taxable profit is identical either way, but only one version reconciles. The practical difficulty is that reconstructing gross from a bank feed is impossible, which is why you either use a connector that posts the split automatically, download the Etsy CSV monthly and enter the summary yourself, or run a tracker that records gross, fees and take-home per payout as they arrive. Our per-platform fee breakdown shows the same arithmetic across the other marketplaces.
Does QuickBooks work for an Etsy shop?
QuickBooks works well as the ledger and does nothing on its own to get Etsy data into it. There is no native Etsy integration in QuickBooks Online, which surprises a lot of sellers who assume a marketplace that size would be covered. Your options are three. Enter a monthly summary by hand from the Etsy CSV, which is genuinely fine at low volume and takes about twenty minutes if you have a template. Add a connector such as A2X at $29 a month per channel, which posts a summarized journal entry for each payout splitting gross sales, discounts, fees, refunds and sales tax, so the entry balances to the deposit exactly. Or use the bank feed alone and accept that your books understate both income and expenses by the fee amount, which is the option that causes the 1099-K mismatch. If you sell on Etsy and somewhere else, the per-channel pricing on connectors adds up quickly and is worth checking before you commit. On the tier question, QuickBooks Solopreneur at $20 a month is built around Schedule C and quarterly estimates for a single person and is not a full ledger, while Simple Start at $38 is. Sellers carrying inventory generally need the real ledger. Our QuickBooks alternatives comparison covers the cheaper routes.
Inventory and cost of goods sold for handmade sellers
This is the part that separates Etsy bookkeeping from bookkeeping for a service business, and it is where most homemade spreadsheets quietly break. If you buy materials and make things, the money you spend on supplies is not an expense on the day you spend it. It sits in inventory and becomes cost of goods sold at the moment the finished item sells. For a maker with fifty listings built from two hundred component materials, tracking that by hand is a real job: you need a bill of materials per product, a running average cost per material as prices change, and a way to value what is still sitting unsold on December 31. Stocksmith, sold as Craftybase until the rebrand, is the tool built for exactly this, with automatic cost of goods sold, material tracking and manufacturing records. It is not cheap, with the vendor pricing page showing Indie at $99 a month in August 2026, so the honest advice is that it earns its cost once material tracking is taking you a weekend a quarter, and not before. Sellers of digital downloads, print-on-demand or resold goods do not have this problem at all and should not buy an inventory system to solve it. A print-on-demand seller in particular has no inventory, because the item does not exist until it is ordered.
What a spreadsheet still does perfectly well
It is worth saying that a spreadsheet is a legitimate answer for a lot of Etsy shops, and the internet is unusually bad at admitting this. If you make under a few hundred sales a year, a monthly summary with columns for gross sales, listing fees, transaction fees, processing fees, ads, shipping labels and net deposit is completely defensible bookkeeping. It reconciles to your 1099-K, it produces a Schedule C, and it costs nothing. The point where it stops working is not a revenue figure, it is a behavior: the month you stop updating it. That usually happens when the shop gets busy, which is the same month the numbers start mattering. The second failure point is selling in more than one place, because now you are hand-merging Etsy, Shopify and a Gumroad shop that each report differently and pay on different schedules. That merge is what a multi-platform income tracker automates, and our Etsy payout tracker page covers the single-channel version. If you want the bookkeeping tools compared for the wider creator case rather than the seller case, the best accounting software for content creators roundup covers it.
Sales tax is handled, but not entirely
Etsy collects and remits sales tax on your behalf in every US state that has marketplace facilitator laws, which is now effectively all of them. That is a genuine relief and it removes the largest compliance burden a small seller used to carry. Two things still land on you. First, that collected tax passes through your account and shows up in your payout data, so if you record it as income your revenue is overstated; it is not your money at any point. A connector splits it out automatically, and a manual summary needs a separate line for it. Second, marketplace facilitator collection covers what you sell on Etsy. If you also sell from your own Shopify store or at a craft fair, those channels are yours to handle, and crossing a state economic nexus threshold on your own sales can create a registration obligation that your Etsy sales did not. This page is informational and not tax advice, and sales tax nexus is genuinely one of the areas where an hour with a CPA pays for itself.
How to assemble a stack without paying twice
Work through it in this order and you will not buy overlapping tools. Start with whether you carry inventory. If you make physical goods from materials, you need cost of goods sold handled somewhere, either in a dedicated tool or in a disciplined spreadsheet, and that decision drives everything else. Next, decide how Etsy data gets into your books: by hand from the CSV if volume is low, by connector if it is not. Only then pick the ledger, because the connector you chose may constrain it, since these tools generally target QuickBooks Online and Xero rather than the cheaper options. Then check whether you actually have a second question, which is what each channel nets you and when it pays. That question only exists if you sell in more than one place, and if you do not, an income tracker is not worth the line item. Finally, resist buying the tool that markets hardest to Etsy sellers before you have named the job. The most expensive mistake in this category is a $99 a month inventory system bought by someone selling digital printables. Our roundup of the best income tracker apps covers the tracking layer, and Wave alternatives covers the budget end of the ledger.
Side by side
Where the boards differ
| What you get | Earnly | Etsy bookkeeping software |
|---|---|---|
| Etsy gross -> fees -> take-home per payout | Yes | Net deposit only |
| Payout calendar with expected deposit dates | Yes | No |
| 12+ marketplace and creator platforms on one board | Yes | Etsy only, via connector |
| Next-month forecast (labeled estimate) | Yes | No |
| Double-entry ledger and chart of accounts | No | Yes |
| Schedule C categories and quarterly estimates | No | Yes |
| Cost of goods sold and inventory valuation | No | Inventory tools only |
| Expense and receipt tracking | No | Yes |
| Price | From $12/mo | $0 to $99/mo |
Comparison reflects published pricing and feature descriptions as of July 2026; both products change. Pick the tool that fits how you earn. See what the board looks like on the income tracker homepage, or start with the revenue dashboard.
Questions people actually ask
What is the best accounting software for Etsy sellers?
There is no single answer, because the job splits three ways. QuickBooks Online Simple Start at $38 a month is the strongest ledger and the one most US accountants prefer, but it has no native Etsy connection, so budget for a connector such as A2X at $29 a month per channel. Wave covers basic double-entry books with a no-cost Starter tier. Sellers who make goods from materials also need cost of goods sold handled, which is what Stocksmith at $99 a month is built for.
Does QuickBooks integrate with Etsy?
Not natively. QuickBooks Online has no built-in Etsy connection, so Etsy sales reach your books one of three ways: manual entry from the Etsy CSV, a third-party connector such as A2X, Link My Books or Taxomate, or the bank feed alone. The bank feed option is the one to avoid, because it records only the net deposit and leaves your reported gross sales thousands of dollars below the 1099-K Etsy files with the IRS.
Do I report Etsy gross sales or the amount deposited?
Report gross sales as income, then deduct Etsy fees separately. Your 1099-K reports unadjusted gross payment volume, before fees, refunds and shipping label costs, so building your Schedule C from bank deposits will understate income and trigger a mismatch with the form the IRS already has. Both methods reach the same taxable profit, but only reporting gross and deducting fees reconciles cleanly.
Does Etsy send you a 1099?
Etsy issues a Form 1099-K to US sellers who pass the reporting threshold, which returned to more than $20,000 in gross sales and more than 200 transactions after the One Big Beautiful Bill Act. Both conditions must be met federally. Eight states set lower thresholds of their own, so a seller in Maryland, Massachusetts, Vermont, Virginia or DC can receive one at $600. Our guide to whether Etsy sends you a 1099 covers the state table and what to do if you do not receive a form.
How do you do bookkeeping for an Etsy shop?
Monthly, not annually. Once a month, pull the Etsy payment account CSV, record gross sales, then record listing fees, transaction fees, processing fees, advertising and shipping labels as separate expenses, and confirm the resulting net matches your bank deposits for the period. Keep business and personal money in separate accounts, because that one change removes most of what a preparer would otherwise bill you to untangle. Sellers who make goods also need materials tracked through inventory into cost of goods sold.
Do I need bookkeeping software for my Etsy shop?
Not necessarily. Under a few hundred sales a year, a monthly spreadsheet with columns for gross, each fee type and the net deposit is completely defensible and costs nothing. Software earns its price at the point where you stop updating the spreadsheet, where you carry inventory built from materials, or where you sell in more than one place and have to merge sources that report differently. Buying an inventory system to track digital downloads is the most common wasted purchase in this category.
Why is my Etsy deposit lower than my sales?
Because Etsy deducts everything before it pays you. On a typical order that means $0.20 to list, 6.5% of the order total including the shipping you charged, and roughly 3% plus $0.25 to process the payment. Orders that came through Offsite Ads lose another 12% or 15%. Shipping labels you bought and any Etsy Ads budget come out of the same balance. A shop with a $520 gross week can reasonably see about $412 arrive, and none of those deductions appear anywhere in your bank feed.