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.
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.
What is an eBay Bookkeeping Spreadsheet?
An eBay bookkeeping spreadsheet is just a simple, customizable spreadsheet you can use to track your eBay business finances. It simply puts an easy-to-access one-stop solution to keep all the basic information of sales, fees, shipping costs, and profit. Think of it as your digital ledger tailored specifically for selling on eBay.
This spreadsheet not only simplifies tracking but also ensures you’re ready for tax season and can spot trends to grow your business. Keeping track of your finances with a good bookkeeping spreadsheet is essential, no matter how small or large your business is.
You need to know where your business stands financially and an organized and up-to-date book can give you the answers.
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.
Cost-Effective
Spreadsheet templates are free, especially compared with paid eBay accounting software. Such templates are a great tool for a novice seller or a budget-constrained seller.
With a template, you have most core features that you need without incurring any cost upfront with other bookkeeping solutions. Even advanced features, including automated formulas and easy-to-read reports, may be accessed at no extra cost.
Saves Time
An orderly spreadsheet allows sellers to monitor their finances quickly. Since the templates have pre-set categories and formulas, users can simply input data without having to calculate totals or margins every other time. That is vital for eBay sellers who require extra efficiency in most daily tasks.
With templates, you reduce the time spent on bookkeeping tasks and maximize the time spent on other essential business functions, such as product sourcing and customer service.
Now that you know about all the benefits of using a spreadsheet and, more importantly, having an organized bookkeeping system, sign up with EcomBalance for a personalized bookkeeping strategy.
Key Components of eBay Bookkeeping Spreadsheet Templates
Below are the key components every eBay bookkeeping spreadsheet should include for seamless record-keeping and accurate reporting:
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.
How to Create an eBay Bookkeeping Spreadsheet
Making an eBay bookkeeping spreadsheet is relatively easy and can be accomplished using tools like Microsoft Excel or Google Sheets. Below is a step-by-step guide to help you get started:
1. Set Up Your Basic Layout
First, set up the base structure of your spreadsheet. In most cases, you will need to separate the following:
- Sale date
- Item Name/ID
- Sale Amount
- Shipping Costs
- eBay Fees
- PayPal Fees
- Cost of Goods Sold (COGS)
- Profit
2. Add Formulas
Now that you have set up your columns, you can automatically add formulas to do all your calculations. Here’s an example:
- Profit Formula: Sale Amount – (COGS+ Fees + Shipping)
- Use SUM functions to track the total of each month on sales, expenses, and profits.
3. Categorize and Organize
If you sell a wide variety of products, you’ll probably want to add extra columns to track categories of product sales channels or even record customer information for later reference. The best part of a spreadsheet is its flexibility.
4. Track Sales and Expenses Regularly
Once your spreadsheet is set up, make it a habit to update it regularly—whether that’s daily, weekly, or monthly—so that you’re always on top of your finances.
5. Review and Optimize
After using the spreadsheet for some time, review it. Is there a category you can include to make it more helpful? Do the calculations simply work well without making any modifications? Data may become outdated and even irrelevant if your bookkeeping process is not optimized at regular intervals.
And that’s it! With a bit of setup, you’ll have a tailored spreadsheet to track your eBay business like a professional.
How to Import Data to an eBay Bookkeeping Spreadsheet
Here are the steps to import data into an eBay bookkeeping spreadsheet efficiently:
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.
How to Choose the Right eBay Spreadsheet Template for 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.
Best Practices for Maintaining Your eBay Bookkeeping Spreadsheet
Want your eBay bookkeeping spreadsheet to work for you, not against you? Here are some smart tips to keep it a valuable tool without being overwhelming.
- Be Consistent: Be assured to track each sale, expense, or net profit, following the same method. Using uniform labels, date formats, and categories is the key to simplicity and easy analysis.
- Update Regularly: Be disciplined to update your eBay accounting regularly, whether daily, weekly, or monthly. The frequency of updates ensures that one always works with the correct numbers while catching errors early.
- Utilize Templates for Easy Management: Generally, free eBay spreadsheet templates like Google Sheets bookkeeping template are pre-formated with appropriate categories and formulas to decrease the amount of work setting up.
- Backup Your Data: Losing months or years of data can be catastrophic. Avoid the disaster by saving your eBay spreadsheet in multiple places—think cloud storage like Google Drive or an external hard drive.
- Review for Accuracy: Audit your entries for mistakes or missed transactions. Cross-check with your eBay Seller Hub or PayPal to ensure everything lines up.
- Keep Business and Personal Finances: If you haven’t separated business expenses and income from your personal finances, do that. This makes tracking and tax prep so much easier.
Implement these best practices to ensure your eBay bookkeeping spreadsheet is a successful financial tool for your business.
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
Frequently Asked Questions (FAQs)
Here are a number of frequently asked questions for sellers to help you get the most out of your eBay bookkeeping spreadsheet.
How Often Should I Update My eBay Bookkeeping Spreadsheet?
You should ideally be updating your spreadsheet every now and then–daily, that is if you have a large quantity of sales or at least on a weekly basis for lesser activities. More frequent updates ensure accuracy of the bookkeeping and also relieve stress during tax season.
Update your eBay sales tracker daily if you generate high sales volumes.
The closer to real-time your information is, the easier it will be to track trends, find profitable products, and run your business.
What Types of Expenses Should I Include in My Spreadsheet?
Your spreadsheet should cover every cost you will incur in running your eBay business. Here are the key ones to track:
- eBay Fees: Listing fees, final value fees, and other platform charges.
- Shipping Costs: Postage, packaging materials, and shipping insurance.
- COGS (Cost of Goods Sold): The cost of acquiring or producing the items you sell.
- Operating Expenses: Marketing, software subscriptions, office supplies, and professional services like accounting.
- Taxes: Sales tax is collected or remitted, and any tax payment is made on business operations.
By keeping a detailed record in your eBay sales tracking spreadsheet, you can stay prepared for taxes and identify areas for cost savings.
Can I Use Google Sheets for eBay Bookkeeping?
Absolutely! Google Sheets eBay sales templates can make bookkeeping more accessible for your business. It’s free, accessible from anywhere, and allows you to collaborate with others if needed.
In addition, you get features like data validation and conditional formatting, which will help you track. You can even import data directly from CSV files, saving you time on manual entry.
As your business grows, you can expand or customize the sheet without needing new software.
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.
If spreadsheets or accounting software are too overwhelming for you, we can help. At EcomBalance, we deliver expert bookkeeping that grows with your business.
Get a personalized bookkeeping strategy today!
