Etsy doesn’t make accounting easy. Every sale comes with listing fees, transaction fees, processing fees, advertising charges, and shipping costs. Your payouts bundle all of this into one deposit every few days.
If you’re tracking this by hand, you’re losing hours every month. And you’re probably missing deductions.
The right Etsy accounting software does two things: it gives you a place to organize your finances, and it gets your Etsy data there automatically. This guide covers both, the accounting tools and the automation apps that connect them to your Etsy shop.
Two types of tools you need
Most guides lump everything together. Here’s the truth: you need two separate tools working together.
1. Accounting software is where your financial records live. QuickBooks, Xero, or Wave. These handle expense tracking, tax prep, profit and loss reports, and bank reconciliation. They’re built for all businesses, not just Etsy.
2. An automation tool connects your Etsy shop to your accounting software. It imports your payouts, breaks them down by type (sales, fees, refunds, taxes), and posts categorized entries automatically. Without this, you’re copying numbers from Etsy into your books by hand.
You can use accounting software without automation. But you’ll spend hours on data entry. And manual entry means mistakes, especially with Etsy’s fee structure.
Best accounting software for Etsy
These are the accounting platforms where your books actually live. Each works with automation tools to import your Etsy data.
QuickBooks Online
Best for: Most Etsy sellers
QuickBooks is the most popular accounting software for small businesses, and for good reason. It handles everything an Etsy seller needs: expense tracking, invoicing, bank reconciliation, tax categorization, and financial reports.
What works well:
- Easy bank feed connections for reconciling payouts
- Strong reporting (profit and loss, balance sheet, tax summary)
- Accountant access built in, so your tax preparer can log in directly
- Huge app ecosystem for add-ons
- Inventory tracking on higher plans
What doesn’t:
- No native Etsy connection. You need an automation tool.
- Pricing has crept up. Simple Start is $38/month, and most sellers need the $75/month Essentials plan for multi-currency or multiple users.
- The interface can feel cluttered for sellers who just need basics.
Pricing: $38-$275/month depending on plan (Simple Start $38, Essentials $75, Plus $115, Advanced $275). Frequent introductory discounts available.
Xero
Best for: International sellers and multi-currency shops
Xero is the main QuickBooks alternative. It’s popular with UK, Australian, and Canadian Etsy sellers, and handles multi-currency better than QuickBooks.
What works well:
- Clean interface that’s easier to learn than QuickBooks
- Strong multi-currency support built into every plan
- Unlimited users on all plans (QuickBooks charges per user)
- Bank reconciliation is fast and intuitive
- Good VAT and GST handling for international sellers
What doesn’t:
- Smaller app ecosystem than QuickBooks in the US
- US-specific tax features lag behind QuickBooks
- No native Etsy connection (same as QuickBooks, you need automation)
Pricing: $25-$90/month (Early $25, Growing $55, Established $90). Xero frequently offers 85% off for the first six months.
Wave
Best for: New sellers and shops under $50K/year
Wave is free accounting software. Not “free trial” free. Actually free for core accounting, invoicing, and receipt scanning.
What works well:
- Free core plan covers accounting, invoicing, and receipt scanning
- Simple interface that doesn’t overwhelm new sellers
- Bank connections for automatic transaction import
- Receipt scanning via mobile app
What doesn’t:
- Limited reporting compared to QuickBooks and Xero
- Payroll and payments are paid add-ons
- Only available in US and Canada
- Fewer automation tools support Wave (Taxomate is the only one that connects Etsy to Wave)
Pricing: Free for accounting. Payroll starts at $20/month.
FreshBooks
Best for: Service-based Etsy sellers (custom orders, commissions)
FreshBooks started as invoicing software and grew into full accounting. It’s strongest for sellers who do a lot of custom work and need to send invoices to clients.
What works well:
- Best-in-class invoicing with time tracking
- Client portal for custom orders
- Easy expense tracking with receipt capture
- Clean mobile app
What doesn’t:
- Weak inventory management
- No direct Etsy automation tools support FreshBooks
- Limited reporting compared to QuickBooks and Xero
- Gets expensive for what you get ($19-$60/month)
Pricing: $19-$60/month. Not ideal for most product-based Etsy sellers.
Zoho Books
Best for: Sellers already using Zoho products
Zoho Books is a solid mid-range option with a free plan for businesses under $50K in annual revenue.
What works well:
- Free plan for businesses under $50K/year
- Good automation rules for categorizing transactions
- Multi-currency support
- Part of the larger Zoho ecosystem (CRM, inventory, etc.)
What doesn’t:
- No major Etsy automation tools support Zoho Books directly
- The free plan has limited features
- US support hours can be limited
Pricing: Free for under $50K revenue. Paid plans start at $15/month.
Craftybase
Best for: Handmade sellers who need materials tracking
Craftybase is the only accounting tool built specifically for makers. It tracks raw materials, production time, and cost of goods sold at the item level.
What works well:
- Tracks material costs per product (not just total COGS)
- Production time tracking
- Direct Etsy import for orders
- Pricing calculator based on actual costs
What doesn’t:
- Not full accounting software. You still need QuickBooks, Xero, or Wave for tax prep and financial statements.
- Small company with limited support
- No payroll, invoicing, or bank reconciliation
Pricing: $19-$49/month. Best used alongside real accounting software, not as a replacement.
Best Etsy automation tools
These tools bridge the gap between Etsy and your accounting software. They import your payouts, categorize transactions, and post entries automatically.
Taxomate
Best for: Most Etsy sellers, especially multi-channel
Taxomate connects your Etsy shop to QuickBooks, Xero, or Wave. It imports each payout, breaks it down into sales, fees, shipping, refunds, and taxes, then posts categorized entries to your books. Setup takes about five minutes.
Why sellers pick Taxomate:
- Works with QuickBooks, Xero, and Wave (only tool that supports all three)
- Unlimited channels on the Multi plan. If you also sell on Amazon, Shopify, eBay, Walmart, or TikTok Shop, one plan covers everything.
- Free historical data imports
- Free 1:1 onboarding on every plan
- Five-minute setup, no accounting knowledge needed
Pricing: Starter plan (one channel) starts at $9/month for up to 200 orders. Multi plan (unlimited channels) starts at $19/month. Plans scale by order volume up to 100K orders/month. See pricing for details.
A2X
Best for: Accountants managing Etsy client books
A2X is the tool most bookkeepers and accountants recommend. It’s accurate, but it’s built for accounting professionals, not sellers.
Strengths:
- Strong accountant network and partner program
- Detailed mapping options for complex chart of accounts
- Multi-currency support
Weaknesses:
- Setup takes one to two hours and requires accounting knowledge
- Charges per channel. Etsy + Amazon = two subscriptions.
- No Wave support
- History limited to three to 24 months depending on plan
Pricing: $29-$159/month per connected marketplace. See our full A2X comparison for details.
Link My Books
Best for: UK and EU sellers focused on VAT
Link My Books started in the UK and handles VAT and Making Tax Digital well. Good for UK-based Etsy sellers.
Strengths:
- Strong VAT and MTD compliance
- Clean dashboard
- Invoice-style summaries
Weaknesses:
- Per-channel pricing like A2X
- No Wave support
- History limited by plan tier
Pricing: Dynamic pricing starting around $34/month per channel. See our Link My Books comparison for a detailed breakdown.
Comparison table
| Feature | Taxomate | A2X | Link My Books |
|---|---|---|---|
| Etsy support | Yes | Yes | Yes |
| QuickBooks | Yes | Yes | Yes |
| Xero | Yes | Yes | Yes |
| Wave | Yes | No | No |
| Multi-channel pricing | Unlimited on Multi plan | Per channel | Per channel |
| Setup time | 5 minutes | 1-2 hours | 15 minutes |
| Free historical imports | Yes | No (limited by plan) | No (limited by plan) |
| Starting price | $9/month | $29/month | ~$34/month |
How to choose the right setup
Your ideal setup depends on your sales volume and where you sell.
Under $25K/year, Etsy only
Recommended: Wave + Taxomate Starter ($9/month total)
Wave is free. Taxomate Starter covers one channel. Total cost: $9/month for fully automated Etsy bookkeeping. This beats manual data entry and costs less than a single hour of bookkeeper time.
$25K-$100K/year, Etsy only
Recommended: QuickBooks Simple Start + Taxomate ($57/month total)
At this level, you need stronger reporting for tax prep. QuickBooks gives you profit and loss statements, balance sheets, and easy accountant access. Taxomate handles the Etsy data import.
$100K+/year or multi-channel
Recommended: QuickBooks Essentials + Taxomate Multi ($94/month total)
If you sell on Etsy plus Amazon, Shopify, or eBay, the Taxomate Multi plan covers unlimited channels. One subscription, all marketplaces. At this volume, the automation pays for itself in the first week of each month.
UK/EU seller with VAT
Recommended: Xero + Taxomate or Link My Books
Xero handles multi-currency and VAT better than QuickBooks for international sellers. If Making Tax Digital compliance is critical, Link My Books has an edge. Otherwise, Taxomate covers it.
What data syncs from Etsy?
When you connect Etsy to your accounting software through an automation tool, here’s what gets imported from each payout:
Sales:
- Item revenue
- Shipping collected
- Gift wrap income
Fees (broken out separately):
- Listing fees ($0.20 per listing)
- Transaction fees (6.5% of sale price)
- Payment processing fees (3% + $0.25)
- Offsite ads fees (12-15% when applicable)
- Etsy Ads charges
- Regulatory operating fees
- Subscription fees (Etsy Plus)
Other:
- Refunds issued
- Sales tax collected
- Currency conversion adjustments
Each fee type goes to its own expense account. That means you can see exactly how much Etsy takes from your sales, not just the net deposit. This matters at tax time because every fee is a deductible business expense.
For a full breakdown of what Etsy charges, see our Etsy seller fees guide.
Getting started
The fastest path from messy Etsy books to clean, automated accounting:
- Pick your accounting software. QuickBooks for most sellers. Wave if you’re just starting. Xero if you’re international.
- Connect with Taxomate. Start a free trial. Link your Etsy shop, then connect your accounting software. Takes about five minutes.
- Import history. Pull in past payouts for free to backfill your books.
- Turn on auto-sync. New payouts post automatically. Match them to your bank deposits with one click.
If you sell on multiple marketplaces, Taxomate’s Multi plan covers Etsy, Amazon, Shopify, eBay, Walmart, TikTok Shop, and WooCommerce under one subscription. Check our Etsy QuickBooks integration page for the full walkthrough, or start your free trial today.