Bookkeeping for Etsy sellers
Etsy nets listing fees, transaction fees, processing fees, offsite ads and refunds against your balance before it deposits a cent — and at year-end the 1099-K reports the gross number. We split it all out, so your books balance and your margins are real.
From deposit to 1099-K, everything explained
- Deposit breakdown: gross sales as revenue, every Etsy fee type on its own expense account
- Offsite Ads tracked as a separate advertising line — you see what the program really costs
- Shipping labels booked as fulfilment costs, matched against what you charge customers
- Refunds and cancellations processed with the right revenue adjustment
- 1099-K reconciliation: books that match what Etsy reports to the IRS
- Combined view when you also sell via Shopify or at fairs — one set of books
Frequently asked questions
Why does my Etsy deposit never match my sales?
Because Etsy nets everything against your balance before depositing: transaction fees, listing fees, payment processing fees, offsite ads fees, shipping labels and refunds. The deposit is what is left over. Your books need the gross picture: full sales as revenue, every fee type as its own expense.
Offsite Ads fees are eating my margin. Do my books show that?
Only if they are booked separately. Offsite Ads charges (12–15% on attributed orders) are exactly the kind of fee that vanishes when you book net deposits. We record them as their own advertising expense line, so you can see per month what the program actually costs you.
Does Etsy handle my sales tax?
For marketplace orders, yes — Etsy is a marketplace facilitator and remits sales tax for you in the US. But if you also sell through your own website, those sales are your responsibility, and marketplace sales can still count toward nexus thresholds in some states. We sort out the combination in the nexus study.
Curious how much you overpay in processing fees?
Send us your latest processor statement and transaction mix. Within three business days you get a report with your savings potential. Free, no strings attached — you get the report even if you never become a client.