As an Etsy seller, you probably started your business to sell your wares, and not to spend time recording your balances. Proper bookkeeping is essential for business owners, however. Failing to record your expenses and earnings can result in you losing money and forgetting to pay your vendors. For many Etsy sellers, virtual bookkeeping is a lifesaver. Outsourcing a virtual bookkeeper will allow you to stay on top of your business’s finances and will help you navigate tricky topics such as sales tax, merchant fees, and tax deductions. With help from a professional bookkeeper, you can have more free time, allowing you to do the things you enjoy. Focus on your business, while your virtual bookkeeper focuses on your books.
What Makes Etsy Bookkeeping Different?
Business Licenses
Online businesses must jump through multiple hurdles to fully operate as an official company. Based on your revenue, you may be required to own a business license. Other examples of online businesses that may require a federal license involve any company that transports plants, animals, animal products, or biotechnology across state lines. If you own an online plant shop or sell animal products, these requirements will affect you.
Merchant Fees
Etsy charges its online sellers a fee of 6.5%, also known as a merchant fee. This fee is applied to the cost of every item you sell and is a factor that must be accounted for if you want to continue using Etsy to sell your products. A virtual bookkeeper can track the funds that Etsy charges, allowing you to look back and consider if Etsy is still a site worth your time and money.
Sales Tax
Depending on your area, you will have to account for sales tax. States such as Alaska, Delaware, Montana, New Hampshire, and Oregon do not require sales tax and therefore do not require seller’s permits. If you plan on only selling items for a short period of time, several states provide temporary sales permits, which are good for 90 days. Sales tax becomes tricky when you happen to be an online seller. Sales tax nexus require Etsy sellers and other e-commerce businesses to apply sales tax to their products. This sales tax must later be paid back to the state, and if not paid properly, can result in late fees, interest, and back charges. Even if you are living in a state without sales tax, if you sell to other states, you will be expected to both charge and pay this amount.
Hire a Virtual Bookkeeper Today
If you’re a small business owner who works with Etsy, hire a virtual bookkeeper today! All About Businesses employs a team of online bookkeepers who are here to help record your finances. Operate a smoothly running business with us at your side. We are here to help you and your company succeed.
Our bookkeepers are Quickbooks certified and easy to reach! At just the click of a button, have one of our bookkeepers on the phone, ready to walk you through the process of managing the books and records of a small business. Our superb organizational skills and communication keep bookkeeping easy. Leave messy records and incorrect balances in the past, contact All About Businesses today.
