This is something we run thru during a training session, but the Greenback UI (user interface) does provide hints and selects defaults based on the account we know you paid from or deposited to. So if you make the occasional bill payment from your credit card (most common) rather than your Etsy Balance, you'll need to pick the right account in QuickBooks. Greenback will note where funds came from/went to on every transaction. all from this specific account, it acts more like a real bank account than simply a place undeposited funds are held. Since you'll be paying expenses, issuing refunds, getting reimbursed payment processing fees, etc. your Payment Processing Fees) and 2) QuickBooks allows some transactions, but not others based on the kind of account you create. The reasoning is two-fold: 1) you pay some expenses from it in our system (e.g. Why? Rather than have a dedicated account in your Chart of Accounts for Etsy as Undeposited Funds - we recommend having a dedicated account that is a Bank -> Checking Account instead. When Etsy transfers funds to your actual bank account, you'll simply 'transfer' those funds in QuickBooks from your Etsy bank account to your actual bank account. As a best accounting practice, you'll want to create a new bank account in QuickBooks to reflect the funds Etsy holds. Since Etsy maintains a balance of funds on their platform for your shop, they act like any other bank account for your business. Paid users can request a 'Catch Me Up' support ticket to get more historical data synced to Greenback. Pro-tip: Free users have access to a limited amount of historical transactions on Greenback. Once you've completed that, you'll be redirected back to Greenback where an initial sync will complete. You'll be redirected to QuickBooks where you can follow the steps to authorize Greenback to connect to your account eg: Allow Access. On the Greenback dashboard, click “Connect” in the left nav, find “QuickBooks” and click on 'Connect', and click Connect again. Then you’ll teach Greenback the mappings by exporting a sale, an expense, and a refund. You’re going to customize your Chart of Accounts by creating an informal Etsy Bank Account, and creating an Expense Account. Make sure to sign up for a Greenback account, and then connect Etsy, and QuickBooks. Here are the best practices we are going to go over. And our platform also helps get all of them into QuickBooks as sales & expenses. Our platform will sync and generate (if necessary) all the transactions that affect your Etsy balance. That's where Greenback provides outstanding support. Thus, (and this is key!) the transfers Etsy will periodically make to your actual bank account will not reflect all the credits and/or debits behind the scenes. You also know that Etsy withdraws funds from your balance (ie: Etsy shop funds/balance) to pay for various expenses such as payment processing fees, refunds, and some bill payments. Etsy will then transfer these funds to your actual bank account on a periodic basis. You already understand that when you sell an item (with Etsy Payments), Etsy will take payment from the customer, then deposit the funds to a holding account on your behalf. The most important thing to remember is that Etsy holds funds on your behalf.

The following best practices will help you get setup with Etsy, Greenback, and QuickBooks (optional). To make it as easy and accurate as possible, we've spent years perfecting our Etsy integration for you. There are just a few things to keep in mind in order to maintain your Etsy shop accounting like a pro with QuickBooks.

Cogs accounting for etsy