Accounting & Bookkeeping for Etsy Sellers
We provide sales tax filing (HST and US), payout reconciliation and monthly bookkeeping services for 7-figure Etsy sellers in the US and Canada.
Trusted by Etsy Sellers in Toronto
This Service Is For You If…
- Your Etsy deposits don’t match your sales reports because of fees, refunds, or timing issues.
- You're a Canadian Etsy seller dealing with 1099-K forms and US tax obligations.
- You're overpaying GST/HST because Etsy remitted it, but your books show it as collected.
- Your inventory tracking is messy, leading to COGS errors, negative stock, or audit risks.
Our Accounting Services for Etsy Businesses
Complete solutions from our Etsy tax accountants, ensuring tax compliance in Canada and the US.
Deposit Reconciliation
- Connect Etsy Payments to QuickBooks or Xero
- Reconcile deposits and manage fees/refunds.
- Manage multi-currency CAD/USD transactions
Fee Tracking
- Track Etsy fees (transaction, listing, processing, and ads)
- Catch overcharges and maximize deductions
- Categorize fees for accurate profit tracking
Sales Tax (Canada & US)
- GST/HST reconciliation when Etsy remits for you
- Track US state nexus and file sales tax
- Handle 1099-K reporting for cross-border sales
Inventory & COGS
- Sync handmade/vintage inventory with Etsy listings
- Calculate COGS including materials and labor
- Analyze profitability by item or category
Selling on Other E-commerce Platforms?
Your Etsy Accounting in 3 Simple Steps
Here are the steps if you choose our Etsy tax accountant for your online shop.
1. Free Etsy Tax Discovery Call
Our Etsy tax accountants review your Etsy shop, identify US states for sales tax, and check GST/HST remittance for free.
2. Setup & Integration
We link Etsy Payments to QuickBooks or Xero with A2X or Link My Books. This includes mapping fees, reconciling deposits, and setting up inventory tracking.
3. Ongoing Support
Monthly Etsy bookkeeping services, fee tracking, multi-state US sales tax filing, and CPA check-ins for Etsy sellers.
Why Etsy Sellers in Toronto Choose SAL?
Etsy Fee Expertise
We break down Etsy fees like 6.5% transaction for better deductions. Most accountants bundle them.
US Tax Solutions
We handle T2 filings, 1120-F, and 1099-K issues and keep everything safe if you sell to the US from Canada.
Free Audit Support
We’ll represent your Etsy business at no extra cost if you face a CRA or IRS audit.
Our Etsy Seller Stories
See What Toronto Etsy Sellers Say
Get Started Today!
Talk with our tax accountants in Toronto and find the right bookkeeping service for your Etsy shop.
How to report Etsy income on taxes in Canada?
Report all Etsy sales as business income on your T1 return using Form T2125 (sole proprietor) or T2 (corporation). Remove deductible expenses like fees and materials to get net profit. Use proper bookkeeping services specially for Etsy sellers to make it easy.
Does Etsy report earnings to CRA?
Yes. If you meet certain thresholds (significant sales/activity), Etsy shares transaction data with CRA. Always report your income accurately. Good Etsy bookkeeping services keep you prepared.
Do I need to declare Etsy income?
Yes. All Etsy income is taxable in Canada, even small amounts or hobby sales that turn profitable. There’s no minimum threshold for income tax (only for GST/HST registration at $30,000).
Do I have to claim Etsy on my taxes?
Yes. You must report worldwide Etsy income to CRA. Proper accounting for Etsy business ensures you claim all deductions and avoid penalties.
Can you write off Etsy expenses?
Yes. Deduct Etsy fees, supplies, shipping, advertising, home office costs, and materials as business expenses on your taxes. It lowers your taxable income.
Can you write off Etsy fees on taxes?
Absolutely. Transaction fees (6.5%), listing fees, processing fees, and ad costs are fully deductible business expenses.
What is the best bookkeeping software for Etsy?
QuickBooks Online or Xero with A2X or Link My Books for automation. Craftybase is great for handmade inventory tracking. Talk to a professional bookkeeping expert for Etsy sellers for full compliance.
What are the biggest Etsy seller mistakes?
Mixing personal and business finances, treating net deposits as revenue, not tracking expenses, ignoring US sales tax nexus, and double-reporting GST/HST that Etsy already remitted.
How to keep track of Etsy finances?
Use dedicated software, categorize every expense and sale monthly, save receipts, and reconcile deposits regularly. Our Etsy bookkeeping Canada services handle this for you.
How much does Etsy take from a $100 sale?
About $10 total: 6.5% transaction fee ($6.50), $0.20 listing, and processing (~$3.25 CAD). You net around $90 before taxes and shipping.
How much can you sell online before paying tax in Canada?
All income is taxable; no minimum for income tax. You must register for GST/HST only after $30,000 in worldwide sales over four quarters.
How much do I need to make on Etsy to get a 1099?
For US sales: $20,000+ gross payments and 200+ transactions in a year (2025 threshold). Etsy sends the 1099-K to you and the IRS.
How much does Etsy bookkeeping cost?
It usually starts from $800–$1,000/month per entity for most stores. Book a free call for exact pricing.
Do I need an Etsy bookkeeper near me?
No, everything is done online. We’re based in Toronto’s Financial District, right in the heart of downtown Toronto, but serve Etsy sellers across Toronto and the US remotely.
