As of 2022, 54% of Etsy sellers were selling on more than one platform. This makes keeping accounting records a time consuming headache for most sellers. It is no secret that accurate records are essential for running a good business and managing cashflow, and keeping on top of your taxes should be a priority. However, without the right tools in place it is one area that often gets neglected.
The best way to integrate Xero and Etsy is using a 3rd party app, such at A2X or Dext Commerce (among others). This way you are ensuring that the correct figures are flowing through to Xero. A2X will post a daily journal to capture sales, costs, and the breakdown of GST.
We see lots of cases where sellers (and their accountants and bookkeepers) are just cash coding directly into Xero, using the net figure deposited into the bank as the sales value. This often understates sales, doesn’t allow you to track shipping costs (and ensure that you are applying the correct margins), and if you are sending products overseas, doesn’t identify GST and GST free sales.
Thankfully, products like A2X make this a lot simpler. With A2X you can also track your costs within the software so that you can readily see your profit margin, and best of all, the manual process of recording all of this is eliminated.
Contact us to help with getting your software integrated.