Etsy Xero Integration for Deposit Reconciliation
Connect Etsy to Xero, import Etsy deposits, and post reconciliation-ready sales, fees, refunds, taxes, and deposits into Xero.
Import each Etsy deposit and post one summarized entry.
Turn Etsy deposits into Xero entries that explain the bank feed.
Use your trial to prove one Etsy deposit imports, posts, and reconciles before backfilling history.
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Etsy to Xero: one summarized entry for each deposit
Etsy pays you in batches. Each deposit mixes sales, fees, refunds, and taxes, so it rarely matches your Xero books on its own. Etsy tracks your money in a payment account ledger. Taxomate reads the ledger and treats each disbursement to your bank as a deposit. Taxomate imports the Etsy deposit and posts one summarized entry to Xero that matches the bank deposit. You skip the spreadsheet.
Compare bookkeeping for Etsy sellers in our Etsy accounting software guide
How to connect Etsy to Xero
- 1
Connect Etsy
Connect your Etsy shop. You approve access in Etsy. Taxomate then reads your payment account ledger and treats each disbursement to your bank as a deposit.
- 2
Connect Xero
Connect Xero. You approve access and select the Xero organization to use.
- 3
Set your account mappings
Run Quick Setup to create default accounts in Xero, or pick accounts you already have. Then check the account and tax type for each category. You can change any mapping later. Taxomate does not post until the required mappings are set.
- 4
Review an Etsy deposit
Open an Etsy deposit in Taxomate. It shows sales, refunds, shipping, fees, advertising, and tax grouped by category, with the deposit total.
- 5
Post to Xero
Post the deposit. Taxomate creates one summarized invoice in Xero, with lines grouped by category, SKU, or order based on your setting. A negative total posts as a bill instead. You choose the invoice status: Draft, Submitted, or Authorised. You can also turn on auto-post so new deposits post after the deposit date.
- 6
Reconcile with your bank deposit
Match the posted invoice to the bank deposit in Xero. The invoice total is the deposit total, so it lines up with the deposit. Xero only matches approved invoices, so approve a Draft or Submitted invoice first.
What Taxomate posts to Xero
Taxomate groups each deposit by category and posts them to the Xero accounts you map. The table lists the categories and where each one goes.
| Transaction type | Where it goes | Default account |
|---|---|---|
| Sales | Income account | Etsy Sales |
| Shipping | Income account | Etsy Shipping |
| Refunds | Income account | Etsy Refunds |
| Transaction and payment processing fees | Expense account | Etsy Fees |
| Listing fees | Expense account | Etsy Fees |
| Etsy Ads and offsite ads | Expense account | Etsy Advertising |
| Adjustments | Expense account | Etsy Adjustments |
| Tax collected | Liability account | Etsy Sales Tax Collected |
| Tax remitted | Liability account | Etsy Sales Tax Remitted |
| Clearing | Clearing account | Etsy Clearing Account |
| Reserved balance | Asset account | Etsy Reserved Balances |
| Carried balance | Asset account | Etsy Carried Balances |
- Taxomate posts one invoice for the deposit, with lines grouped by category, SKU, or order. If the total is negative, it posts a bill.
- You can turn on Xero tracking categories to split amounts by tracking category.
- Every mapping is yours to change. The default account names are a starting point.
Plans start at $14/month for one sales channel with up to 200 orders a month. Every plan has a 14-day free trial. See pricing.
Questions before you connect Etsy to Xero
Short answers on how a payout-based workflow handles Etsy deposits in Xero.
How do I connect Etsy to Xero without rebuilding payout spreadsheets?
Start with the Etsy deposit, import the related sales, fees, refunds, taxes, and adjustments, then review the summarized Xero entry before posting.
Can an Etsy Xero integration help reconcile deposits in Xero?
Yes, if the workflow uses the payout as the control total and posts a summarized entry that can be matched against the bank deposit in Xero.
What should I test first in an Etsy to Xero trial?
Use one recent Etsy deposit as the activation test. The workflow is ready to scale when the first import, first successful post, and bank reconciliation all line up.
First-post proof
Test Etsy to Xero with one deposit
Before you import months of Etsy sales, use one representative Etsy deposit to confirm the Xero summary and bank reconciliation path.
- 1 Import one recent Etsy deposit with sales, refunds, fees, and tax activity.
- 2 Review the Xero summary and compare it to the Etsy deposit report.
- 3 Confirm the first successful post in Xero reconciles to the bank deposit before importing more history.
Reconciliation playbook
Etsy Xero deposit reconciliation playbook
The goal is to turn each Etsy deposit into a Xero entry that reconciles without manual journals.
Import the Etsy deposit
Use the Etsy deposit as the control total, then summarize related sales, refunds, fees, tax, and adjustments around that payout.
Review the Xero summary
Check the proposed Xero post before sending it so Etsy revenue, fees, refunds, tax, and clearing lines are understandable.
Match the first post
The first successful Xero post should reconcile to the Etsy bank deposit before historical deposits are imported.
Activation checklist
- Etsy deposit imports with sales, refunds, fees, taxes, and adjustments.
- Xero summary explains the Etsy deposit without manual journal rebuilding.
- The first successful post in Xero reconciles to the Etsy bank deposit.
Comparing ecommerce accounting tools?
A2X vs Link My Books for Etsy to Xero
See how A2X, Link My Books, and Taxomate compare for this exact Etsy to Xero payout workflow before you test your first import and post.
Exhausted from constantly grappling with the intricacies of manual data entry? Fed up with the time-consuming tasks and the ever-lingering possibility of human error? With our automated system, you can say goodbye to the tedious task of manually handling your financial data.
Less manual entry
Taxomate turns each Etsy payout into one summarized entry in Xero, so you match one entry to each deposit instead of copying payout reports by hand.
See where the money went
Sales, fees, refunds, shipping and tax post to the accounts you map, so your profit and loss report shows each one. Taxomate can also send summarized cost of goods sold (COGS) entries.
One summary per payout
Each summary breaks the payout down into sales, refunds and fees, and its total equals the deposit. You can review it before it posts.
Why automate your Etsy accounting?
Taxomate turns your Etsy sales, fees and tax data into summarized entries that match your payouts in Xero.
No payout spreadsheets: Taxomate imports each Etsy payout for you, so you do not rebuild it from reports in a spreadsheet.
The same mappings every time: Every payout posts with the account mappings you set, so each fee and tax type lands in the same account each month.
Books that stay current: Turn on auto-post and new payouts post after their deposit date, without a manual step.
Tax kept separate: Tax collected on Etsy sales posts to its own account, separate from sales. Taxomate records the amounts; filing and tax advice stay with you or your accountant.
How Does Taxomate Work?
Getting started with Taxomate in 10 minutes or less.
1 Signup for a Free Trial
Start a 14-day free trial. Creating an account takes a few minutes.
2 Connect Your Etsy and Xero Accounts
Connect your Etsy seller account and Xero. Each one asks you to approve access.
3 Confirm Your Accounts & Taxes
Run Quick Setup or pick your own accounts, then confirm the account and tax setting for each category. You can change any mapping later.
4 Review and post
Review each Etsy summary and post it to Xero, or turn on auto-post so new payouts post after their deposit date.
Taxomate handles the payout bookkeeping for Etsy, so your time goes to checking the summary, not building it.
Onboarding help included
Book a free 1:1 onboarding call, or get help by email and video chat. Setup guides and help articles are in the help center.
You stay in control
You approve each connection in Etsy and Xero, set every account mapping, and can review each summary before it posts.
Priced by order volume
Plans start at $14/month for one sales channel with up to 200 orders a month, and the Multi-channel plan has no channel limit. Every plan has a 14-day free trial.
Frequently Asked Questions
What is Taxomate?
Taxomate is an automated cloud-based accounting software designed to simplify the bookkeeping process for Amazon, eBay, Etsy, Walmart, and Shopify sellers. It imports Etsy payouts and posts summarized sales, fees, refunds and taxes to QuickBooks Online, Xero or Wave, so you do less manual entry.
How does Taxomate integrate with Etsy and Xero?
Taxomate connects to your Etsy account to fetch transaction details such as sales, refunds, and fees. It then processes these transactions and automatically posts them as summarized entries into Xero that match your Etsy payout reports, so each entry matches its deposit.
Do you charge extra for connecting multiple Etsy accounts or for importing historical data?
No, Taxomate does not charge extra fees for connecting multiple Etsy accounts or for importing historical data. Our pricing plans are designed to offer flexibility and scalability, allowing you to add as many accounts as you need without additional costs. Taxomate can import as much historical data as allowed by each sales channel.
What kind of support and resources does Taxomate offer to its users?
Taxomate provides its users with a range of support options and resources. This includes email support, 1:1 video chat support, comprehensive guides, video tutorials, and a knowledge base filled with helpful articles. These resources are designed to help users navigate the software, from setup to advanced features, ensuring a smooth experience.
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The term 'Etsy' is a trademark of Etsy, Inc. This application uses the Etsy API but is not endorsed or certified by Etsy, Inc.