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.
Etsy lines
Xero accounts
- Sales
- Shipping
- Refunds
- Transaction fees
- Listing fees
- Tax collected
- 5.0 / 5 88+ reviews on the Xero App Store
- 14 days Free trial, last 90 days of payouts imported
- $29 / mo Growth plan, no cap on channels
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 →Before and after
96 Etsy transactions become one Xero entry.
Every order adds its own sale, fee and shipping lines to the Etsy deposit. Taxomate adds them up by category, so Xero gets one entry with the same total as the bank deposit.
Etsy deposit lines
96 lines
- #1041 Sale $24.99
- #1041 Shipping $4.99
- #1041 Transaction fee −$1.95
- #1041 Processing fee −$1.15
- #1042 Sale $18.50
- #1042 Transaction fee −$1.20
- #1042 Processing fee −$0.81
- #1043 Sale $31.00
- #1043 Transaction fee −$2.02
- #1043 Processing fee −$1.18
- #1044 Sale $12.99
- … 85 more lines
Xero · One summarized invoice
- Etsy sales and shipping
- $765.78
- Refunds
- −$55.00
- Etsy fees
- −$79.77
- Bank deposit
- $631.01
A negative total posts as a bill instead.
Setup
How to connect Etsy to Xero
- 01
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.
- 02
Connect Xero
Connect Xero. You approve access and select the Xero organization to use.
- 03
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.
- 04
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.
- 05
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.
- 06
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.
Posting
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 |
Good to know
- 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.
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.
Before you import history
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.
What the Etsy Xero integration replaces
Without an integration, every Etsy payout means copying a report into Xero line by line and checking that the total matches the bank deposit. Taxomate does that step for you, the same way each time.
- 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.
Benefits
Why automate your Etsy accounting?
Taxomate turns your Etsy sales, fees and tax data into summarized entries that match your payouts in Xero.
See all integrations →-
No payout spreadsheets. Taxomate imports each Etsy payout for you, so you do not rebuild it from reports in a spreadsheet.
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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.
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Books that stay current. Turn on auto-post and new payouts post after their deposit date, without a manual step.
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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.
Why Etsy sellers choose Taxomate
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 $19/month for one sales channel with up to 200 orders a month, and the Growth plan has no channel limit. Every plan has a 14-day free trial.
Etsy to Xero 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?
Connecting multiple Etsy accounts costs nothing extra. Historical data depends on your plan. Annual plans include all your history, as far back as Etsy provides. Monthly plans include this year, and at least the last 90 days. Earlier years on a monthly plan are a one-time catch-up (3 times your monthly plan price, at least $79), or included if you switch to annual. Your 14-day trial imports the last 90 days, and the rest of your plan's history imports when your plan starts.
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.
Post your first payout today.
Try Taxomate free for 14 days. Your trial imports the last 90 days. Check the first entry before you send it.
The term 'Etsy' is a trademark of Etsy, Inc. This application uses the Etsy API but is not endorsed or certified by Etsy, Inc.