Etsy settlement reconciliation, inventory + COGS tracking for handmade, and multi-state sales-tax nexus monitoring — for shops doing $5k to $80k/mo who have outgrown spreadsheets.
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Etsy sellers have a uniquely brutal bookkeeping problem: every Etsy deposit is a net figure after listing fees, transaction fees, payment processing, advertising charges, refunds, and Etsy-collected sales tax on marketplace-facilitated states. A single $1,200 deposit might represent $1,650 in gross sales, $180 in fees, $200 in marketplace-collected tax, and a $70 refund — and Etsy reports the gross to the IRS on 1099-K. Generalist bookkeepers post the net deposit and your tax return suddenly under-reports revenue by 30%. On top of that, handmade sellers run inventory: yarn, beads, blanks, packaging — all of it is COGS, not expense, and getting that wrong inflates your profit and your tax bill simultaneously. We pull the Etsy settlement file directly, break each deposit into its component parts, track raw-material inventory at SKU level, and monitor your economic-nexus footprint across all 45 sales-tax states.
These are the niche-specific issues a generic $200/mo bookkeeper either misses or charges extra for.
Etsy deposits net out fees, ads, refunds, and marketplace-collected tax — posting the net deposit understates gross revenue by 20-40% vs your 1099-K
Handmade inventory (raw materials → WIP → finished goods) needs SKU-level COGS tracking; expensing materials in the month bought destroys your gross-margin reporting
Economic nexus thresholds vary by state ($100k or 200 transactions in most; $500k in California, Texas, New York) and Etsy collects in some states but not all — tracking your own remittance obligation is on you
Etsy Ads, Offsite Ads, and shipping label purchases are billed inside the settlement, not as separate transactions — invisible to generic accounting software
A2X is a syncing tool, not a bookkeeper — it dumps Etsy settlement journals into QBO and stops there. ecomBalance quotes start around $399/mo and skew Amazon-first. No full-service bookkeeper specializes in Etsy below $300/mo with COGS handling and sales-tax nexus tracking.
| Provider | Monthly | Focus | Notes |
|---|---|---|---|
| Settlement journal sync only | |||
| Amazon-first eCom bookkeeping | |||
| Generalist online business | |||
| Etsy settlement parsing + SKU-level COGS + nexus monitoring |
3 questions. We reply within 1 business day with a specific scope of work and flat monthly rate for your situation.
Yes — and they need different treatment. Etsy pays you a net settlement (we use A2X to reverse-engineer it). Shopify pays you a gross deposit and bills Stripe/Shopify Payments fees separately. We map both into a single chart of accounts so your management P&L shows true gross revenue, channel-level marketing spend, channel-level fees, and consolidated COGS. Adding Shopify on top of your Etsy package is $95/mo on the standard tier.
Etsy is a marketplace facilitator in 47 states + DC, meaning Etsy collects and remits the sales tax for orders shipped to those states — you do not owe it again. But: if you sell on your own Shopify store, run wholesale to a retailer, or sell at in-person markets, Etsy is not facilitating those, and you owe sales tax in any state where your direct sales cross economic-nexus thresholds. We track your nexus footprint monthly and warn you the quarter before you trip a threshold, not the year after.
Three buckets: raw materials (yarn, fabric, beads), WIP if you batch-produce (10 mugs glazed, not yet fired), and finished-goods inventory ready to ship. Raw materials are an asset on purchase, moved to COGS when consumed in a sold product. We work with you to set a reasonable cost-per-unit method (typically weighted average for handmade) and integrate with Craftybase or Inventora if you already use one. For sellers under $100k/yr we offer a simplified periodic-COGS method that the IRS accepts under the de minimis safe harbor.
Yes. Vintage resale is COGS-driven but not material-driven — your cost basis is what you paid for each piece. We track each high-value item (over $100 cost basis) individually and apply specific-identification accounting at sale. Lower-value items get grouped and weighted-average cost is fine. The other change: vintage sales sometimes trigger collectibles capital-gains treatment (28% rate) if you are technically an investor rather than a dealer — we flag the position based on your sales volume and frequency.