Using an eBay bookkeeping spreadsheet to keep tabs on sales can be a helpful tool. Keeping financial records straight is important, and a sheet that’s tailored to the eBay system makes this easier.
Let’s go over what goes into eBay bookkeeping and setting up a spreadsheet that works.
Understanding eBay Bookkeeping
Every eBay seller needs to track their financial transactions related to selling on the marketplace. This includes recording sales income and expenses like platform fees and other costs associated with running an eBay business.
Why is Efficient Tracking Important for eBay Sellers?
Efficient bookkeeping is important for eBay sellers to get an accurate financial picture of their business. Tracking income, expenses, and profits is how a seller can see exactly how much money they’re making and where it’s going. This means they can make more informed decisions around pricing, inventory, marketing strategies, etc.
Other benefits include:
Taxes
Keeping meticulous records makes filing taxes a breeze. With all income and expenses documented, a seller can easily calculate their taxable income and claim applicable deductions. This saves time and potentially even money on taxes, too.
Profits
Proper bookkeeping helps sellers identify which products are most profitable, where they can cut costs, and how to optimize pricing. This helps to maximize profits and run a more efficient business.
Historical financial data also helps sellers plan for future growth through budgeting, forecasting, and setting realistic goals.
Loans and Investors
Good bookkeeping encourages trust for when sellers might need to apply for a loan or attract investors. Well-maintained financial records show responsible business stewardship.
Benefits of Using Spreadsheet Templates for eBay Bookkeeping
Spreadsheet templates offer several benefits for eBay sellers, especially those just starting out or managing a smaller volume of transactions. Below are some of our favorites, besides the obvious fact that most spreadsheets are free, unlike most eBay accounting software.
Easy to Use
Bookkeeping templates often come pre-formatted with relevant categories and even formulas. Those designed for eBay are even more suited to the platform specifically. Sellers can just grab and go, basically, with confidence that they can capture all the necessary data.
Data entry is usually straightforward with spreadsheets. A seller would simply enter sales figures, expenses, and other details into the designated fields.
Flexible
Of course, customization is possible within most templates to fit specific needs. For example, sellers can add or delete categories, tweak formulas, and even tailor the layout.
Sellers will find templates easier to check since they can see the calculations and make manual adjustments as needed. They can also work offline if needed.
Spreadsheets are easy to back up, store, and transfer, too. Sellers can have a local copy, store it in the cloud, email it, and access it from any device.
Key Components of eBay Bookkeeping Spreadsheet Templates
Sales Tracking
Tracking daily, weekly, and monthly sales data is vital for any business. A proper bookkeeping template will have all this pre-formulated. Then, the user can simply modify whichever column headings they need to match their specific sales data. For example, they can add product categories, sales channels, or customer names.
Templates should make entering sales figures and other relevant data easy. They should also allow users to add formulas to automate calculations.
We love templates that show itemized sales records. This level of detail about individual sales in a free format is so valuable. For example, a user can track SKUs, customer emails, sales tax, payment methods, order number, and the like.
Expense Tracking
Cost of Goods Sold (COGS)
Tracking Cost of Goods Sold (COGS) is essential to calculate gross profit. Every business needs to know this to remain profitable. This template, too, must allow customizable fields to match any specific business.
Examples of expense details a seller might want to have on a spreadsheet are product identifiers, inventory quantities over time. They will also want to see the calculations for unit costs, units purchased and sold, etc.
The user can add separate sections for different product categories as needed. Then a row for total COGS can be at the bottom of each table for a quick look. Businesses with variable COGS can adjust most templates to capture those costs.
Operating Expenses
A spreadsheet for tracking operating expenses (OpEx) helps sellers see where their money is going. They can modify templates to categorize and track things like hiring expenses, platform fees, equipment, marketing and advertising costs, accounting and legal fees, taxes and licenses, etc.
We recommend using dedicated columns for monthly, quarterly, and yearly calculations. Formulas are super helpful to keep the sums up to date automatically. Then the user can easily identify spending patterns to find areas for cost reduction.
Profit Calculation
Gross Profit Margin
A gross profit spreadsheet will basically track revenue for each month alongside COGS for each product. A seller can calculate margins for each product and get an average per month, too.
As needed, a user can add separate sections for different product categories to analyze their individual gross profit margins. They can also use that data to create charts to visualize trends over time.
We recommend adding a target gross profit margin to the template for comparison purposes versus actual performance. We also like to link this to sales and COGS data calculations on other sheets for automated updates.
Net Profit After Expenses
This template will show different secretions with summary data.
- Total sales revenue for a defined period
- COGS calculation details
- OpEx categories and corresponding amounts
- Other expenses not categorized elsewhere
Everything should be linked and operate with formulas so it all updates on its own. Conditional formatting can help to highlight important values like net profit or high expense categories.
Choosing the Right Spreadsheet Template for eBay Bookkeeping
Both pre-made eBay bookkeeping templates and customizable options have their own advantages and disadvantages.
Pre-Made Templates
Pre-made templates are mostly free and easily found online. They are pre-formatted with relevant categories, allowing users to get started immediately. They may lack certain features, however, like integrations with software. These templates may therefore be unsuitable for more complex or specific needs.
Customizable Options
Customizable bookkeeping templates allow users to take them right off the shelf, so to speak, or modify them. Users can take something basic and use it to design a spreadsheet tracker that perfectly fits their needs.
These options are also scalable alongside the business. Most customizable sheets have advanced features like formulas, automation, and functionalities beyond basic data entry.
Note that customization always requires time and effort, plus some technical knowledge. Errors in the setup can lead to errors in formulas or calculations, too.
Our Recommendation
For new sellers with low transaction volumes, we recommend pre-made templates as a starting point for managing basic data.
Growing sellers with increasing sales volumes can move to customizable options as the business expands and requires more features.
More complex businesses should consider using ecommerce accounting software.
Examples of Popular eBay Bookkeeping Spreadsheet Templates
- A quick internet search will bring up so many resources with helpful bookkeeping templates. However, specific recommendations for downloadable templates might be outdated. Always check before choosing a template.
- Online spreadsheet platforms like Microsoft Excel and Google Sheets offer downloadable templates within their platforms. A search for “eBay bookkeeping template” or “ecommerce bookkeeping template,” will bring up several options.
- Ecommerce blogs and other websites also offer free downloadable spreadsheet templates specifically designed for eBay sellers. Anyone can search for them, but sellers need to make sure that publication dates are current. User reviews and comments can also offer insights into the true functionality and ease of use of each option.
- Some websites offer premium spreadsheet templates. These usually have more advanced features or lifetime access for a fee. These can be a better option because they tend to be more complete and are regularly updated.
Importing Data to an eBay Bookkeeping Spreadsheet
Manual
A seller can manually enter sales data from eBay into a bookkeeping spreadsheet. It’s a simple copy-and-paste process from an eBay sales report to the template. These reports are available in the Seller Hub under “Transactions” in the “Reports” tab.
Manual imports allow sellers to choose which data points they want to copy. This method is prone to errors, though.
Import Functions
Some spreadsheet programs offer import functionalities for advanced users. This can automate data transfer from external sources like eBay or CSV files. This method typically requires more technical knowledge, but it’s usually not too difficult to learn.
For example, an Excel spreadsheet has a “Data” tab with a “Get External Data” or “From Text/CSV” option. This function allows a user to select a downloaded eBay sales report and import a range of data. Note that the formatting may not always come out exactly right.
What Is EcomBalance?
EcomBalance is a monthly bookkeeping service specialized for eCommerce companies selling on Amazon, Shopify, Ebay, Etsy, WooCommerce, & other eCommerce channels.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
And here’s some free resources:
- Monthly Finance Meeting Agenda
- 9 Steps to Master Your Ecommerce Bookkeeping Checklist
- The Ultimate Guide on Finding an Ecommerce Virtual Bookkeeping Service
- What Is a Profit and Loss Statement?
- How to Read & Interpret a Cash Flow Statement
- How to Read a Balance Sheet & Truly Understand It
Conclusion
Overall, efficient tracking with an eBay bookkeeping spreadsheet is a good investment in the success of an eBay business. It’s a very basic way to gain important financial insights to make smart business decisions, stay compliant, and maximize profits.
Spreadsheet templates can be a great starting point, particularly because they offer affordability, ease of use, and customization options. However, a business may scale and need more advanced features. If so, we recommend looking into eBay accounting software as a better long-term solution.
