A free Etsy bookkeeping spreadsheet can go a long way to helping you streamline your shop operations. Especially for new or small shops, this solution is usually sufficient to keep things organized.
Let’s go over how to use an Etsy bookkeeping spreadsheet template efficiently to get the most out of it. Look out for the common mistakes, too, so you can avoid them.
What to Look for in a Free Etsy Bookkeeping Spreadsheet
Essential Features
- Sales Tracking – allows you to add relevant sales details and, ideally, easily import data from your Etsy shop.
- Expense Tracking – captures various business expense categories with the option to customize them for easier analysis.
- Profit Calculation – automatic calculations for profits per item and data range.
- Basic Reporting – simple reports to visualize your sales trends, expenses by category, and overall profitability over a chosen period.
- Inventory Management – has formulas for tracking stock levels and reordering points.
Note that free spreadsheets have limitations on features. Focus on striking a balance between having the features you need and enjoying a user-friendly interface. Choose templates that have easy-to-follow layouts, especially if you or your team members are new to using spreadsheets.
Compatibility and Integration
Free Etsy bookkeeping spreadsheets are typically compatible with common spreadsheet programs like Microsoft Excel, or its web-based counterpart, Google Sheets.
Free spreadsheets generally won’t offer direct integration with either Etsy, Etsy seller tools, or ecommerce accounting software. Typically, you will need to manually enter data from your shop and other sources.
You can copy and paste sales information into your spreadsheet, but we recommend downloading CSV files from Etsy instead. You can then import these files into your spreadsheet, and you’ll only need to make a few formatting adjustments.
Best Sources for Free Etsy Bookkeeping Spreadsheets
Online Communities and Forums
- Etsy Community – This is the official Etsy seller forum, a great place to find resources shared by other sellers. You can search within the community for keywords like “free bookkeeping spreadsheet” and “Etsy bookkeeping template” to find options to test out.
- Reddit – Find the vibrant community of Etsy sellers on this subreddit who will have tips and suggestions for using free spreadsheets. You can also browse through threads related to bookkeeping for sellers.
- YouTube – Look for creators offering free Etsy bookkeeping spreadsheet tutorials that walk you through setting up and using a template.
- Various Blogs and Websites – search online for sites that cater to Etsy sellers and may offer free downloadable spreadsheet templates.
Be cautious when downloading spreadsheets from unknown sources because they can be infected with malware. It’s best to check that they come from reputable creators in the Etsy community.
Educational Websites and Blogs
- Etsy Success Podcast – listen to episodes dedicated to bookkeeping for Etsy sellers and look for recommended spreadsheet resources in the show notes.
- Etsy – Etsy’s own selling resource center offering various resources, including articles around bookkeeping and financial management.
- Jennifer Maker – read up on running a profitable crafting business using a free downloadable Etsy bookkeeping spreadsheet.
- Erank – a resource for various tools and resources, including a free downloadable Etsy bookkeeping spreadsheet.
Template Sharing Platforms
- TemplateLab – a site hosting a variety of free downloadable templates, including some for Etsy bookkeeping.
- Microsoft 365 – browse free downloadable Excel bookkeeping template spreadsheets from Microsoft themselves.
Direct Downloads from Financial Advisory Sites
- EcomCrew – a site offering resources for ecommerce businesses, including bookkeeping with links to other sites offering downloadable spreadsheets.
- FreshBooks – browse for blog articles mentioning free bookkeeping spreadsheet templates relevant to Etsy sellers.
How to Use a Free Etsy Bookkeeping Spreadsheet
Setting Up Your Spreadsheet
Here’s a step-by-step guide on customizing a free Etsy bookkeeping spreadsheet for your Etsy store’s needs.
1. Find, Download, and Open the Spreadsheet
Find a free Etsy bookkeeping spreadsheet template from a reputable source and save it to your computer. Make sure you choose a file format compatible with the other tools you use for your Etsy store. Scan the file with professional antivirus software before you open it.
2. Learn the Template and Customize the Categories
Take in the layout of the spreadsheet so you can find the different sections and learn how they work. Modify any pre-defined categories to suit your specific needs. Add sections or columns to capture specific sales and expense details.
3. Customize Formulas, Formatting, and User Preferences
Review the pre-defined formulas and make adjustments to accommodate any additional data fields you added. Make sure you’re comfortable with basic spreadsheet formulas before changing things.
Customize the spreadsheet’s appearance to make it easier for you or your teams to read. You can change font styles, colors, cell formatting, freeze rows or columns, and more.
Start basic and gradually add complexity as you get more familiar with using the template and as your needs evolve. The most important part is maintaining consistency in how you enter data to ensure accurate record keeping.
Daily and Monthly Bookkeeping Tasks
Here’s how to record daily sales and expenses and calculate monthly profits using a free Etsy bookkeeping spreadsheet.
- Once you have your spreadsheet set up, create a schedule for when you will focus on recording sales data.
- Prepare your sales and expense data sources so you can enter the relevant details.
- Enter the information for each sale in a new row:
- Date of the sale
- Order ID
- Sales amount, including taxes and fees
- Item names, quantities, and variations
- Enter the information for each expense in separate expense categories:
- Materials
- Shipping costs
- Marketing fees
- Bank fees
- Include the date and expense amount for each entry.
- Check that your profit formula cell (Sales minus Expenses) automatically updates as you enter data.
Tips for Maximizing the Effectiveness of Your Etsy Bookkeeping Spreadsheet
Regular Updates and Reviews
We recommend updating your bookkeeping spreadsheet daily if you make at least 10 sales per day. This helps you maintain accuracy and minimize errors that come from forgetting details and missing transactions.
With access to the latest financial information about your shop, you can identify sales trends, track expenses, and monitor profitability. Early detection of fluctuations allows you to take corrective actions and make informed business decisions.
Accurate and up-to-date records are also vital for filing taxes and never missing applicable deductions.
Consider dedicating a period of time each day to record your sales and expenses. Automate data feeds and calculations wherever possible to reduce your load.
Integrating Additional Tools
Free Etsy bookkeeping spreadsheets offer a good starting point, but integrating other tools into your suite can enhance your bookkeeping.
Tax Calculators
Standalone tax software like TurboTax Self-Employed or H&R Block Self-Employed can help you estimate your tax liabilities and simplify tax filing. These programs often allow you to import spreadsheet data to make things easier.
Inventory Management
You can use free of paid inventory management apps like Zoho Inventory or Odoo. They might not all be able to integrate directly with your spreadsheet. However, they can help you track stock, set reorder points, and generate reports.
If you prefer spreadsheets, you can create a separate one specifically for inventory management. You can keep details on product names, SKUs, stock levels, reorder points, and cost per item. Then, manually update your bookkeeping spreadsheet with totals or summaries at least weekly.
Common Mistakes to Avoid with Your Etsy Bookkeeping Spreadsheet
Errors in formulas are common on spreadsheets. Sometimes they are typos and sometimes they are glitches in the software itself. Formulas might also reference incorrect cells or contain circular references.
Similarly, typos often happen when entering data manually.
Always double check entries and computations to make sure you’re getting the correct calculations. Use the spreadsheet’s tool for building formulas to avoid mistakes. Stick to a system for entering and labeling data to avoid confusion.
Consider using a double-entry bookkeeping system to automatically ensure that your records balance.
FAQs
What are the limitations of using a free bookkeeping spreadsheet for an Etsy shop?
Most free bookkeeping spreadsheets do not offer a high level of integration with other tools. You will also face the challenges of manually downloading, uploading, and checking data. You may also need to update your expense categories periodically.
Free spreadsheets lack advanced features like inventory and project management functions, and tax calculators. They also offer only basic reporting and don’t scale well.
Security is a major concern when using free spreadsheets in a cloud environment. Data loss and shared access is also a concern, however, when using local copies.
Can I integrate my Etsy bookkeeping spreadsheet with other ecommerce platforms?
Free Etsy bookkeeping spreadsheets typically lack the functionality to directly integrate with ecommerce platforms. They are designed as independent applications for basic record-keeping, not for connecting and exchange data with other platforms.
How often should I back up my Etsy bookkeeping spreadsheet?
We recommend backing up your Etsy bookkeeping spreadsheet as often as you update it. Creating that routine backup is easy and simple and helps you stay organized.
Are there any security concerns with using a free bookkeeping spreadsheet?
Free spreadsheets stored locally pose the risk of data loss if the computer crashes or the file gets corrupted. Sharing the spreadsheet can create multiple files with different data. Sending files over the internet can also potentially compromise sensitive financial information.
Some spreadsheet programs offer password protection features, but free templates don’t usually offer enough protection.
What should I do if my bookkeeping needs outgrow the capabilities of a free spreadsheet?
We highly recommend looking into finding a bookkeeper who specializes in Etsy shops. This is a good transition if you’re not ready to take on full-time bookkeeping in-house.
Identify the specific areas where your spreadsheet struggles. Identify the specific areas where your spreadsheet struggles. Then, pass that off to someone with the skills and experience to make it work.
As your store grows, determine how much you’re comfortable spending on accounting software for small businesses. Look for bookkeeping software targeted towards Etsy sellers, and the features that address your specific needs. Automatic data import, inventory management, and financial reporting, are a few key areas to consider.
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
A free Etsy bookkeeping spreadsheet may not be the absolute best tool for managing your store. But you can actually do a lot with just this simple tool. There’s no shame in starting small, and it can actually be better for your business in the long run.
