Bookkeeping for Etsy sellers: a simple monthly system
How should an Etsy seller do bookkeeping?
Record every order with its Etsy fees (listing, transaction, processing and any Offsite Ads), record every business expense with a category, and close each month by comparing sales minus fees and expenses to your Etsy deposits. Set aside a percentage of profit for taxes as you go. A spreadsheet is enough for most one-person shops.
What to track
- Each order: item price, shipping charged, sales tax collected and every Etsy fee
- Materials, packaging and postage you paid
- Etsy Ads and Offsite Ads spend
- Deposits from Etsy to your bank
- Monthly profit and a tax set-aside
A routine that takes minutes
- Weekly: export or paste new Etsy orders
- Weekly: add receipts for materials and postage
- Monthly: match Etsy deposits to your bank
- Monthly: review profit by product and adjust prices
Free tools for this
- Etsy fee calculator
Every US Etsy fee on a sale, plus your profit. - 2026 mileage deduction calculator
Both 2026 IRS rates, split by date.
Also useful: Maker Pricing & Profit Calculator · Freelancer Income & Tax Set-Aside Tracker
Questions
Do Etsy sellers need accounting software?
Not usually at the start. A spreadsheet that tracks orders, fees and expenses covers a one-person shop. Software makes more sense with employees, inventory at scale or multiple sales channels.
Should I record Etsy fees separately?
Yes. Separating listing, transaction, processing and ad fees shows which ones are growing and gives you the numbers for your expense records.
General information, not tax, legal or accounting advice. Rates change: check the linked official source before you rely on a number. Not yet reviewed by a CPA or EA.
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