Most accounting software is built for service businesses that send invoices, not shops that buy materials, hold inventory, and pay Etsy a cut of every sale.
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Table of Contents
- Introduction
- How We Evaluated These Apps
- Quick Comparison Table
- 1. Craftybase
- 2. Link My Books
- 3. A2X
- 4. Xero
- 5. QuickBooks Online
- 6. QuickBooks Solopreneur
- 7. Wave
- 8. FreshBooks
- 9. Zoho Books
- 10. Bench
- How to Choose the Right App for Your Shop
- Frequently Asked Questions
- The Bottom Line
Introduction
Etsy takes a transaction fee, a payment processing fee, a listing fee, and sometimes an offsite ads fee out of every sale before the money ever reaches your bank account. A generic budgeting app can’t untangle that. It just sees a deposit.
We looked at ten bookkeeping tools that Etsy sellers actually use: three built specifically for handmade and marketplace inventory, four general small-business accounting platforms, two payout-reconciliation connectors, and one full-service bookkeeping option for sellers who want to hand the whole thing off. Pricing, integrations, and feature details below come from each provider’s own current pricing page, linked in every entry.
Here’s what separates the ten, and which one fits a shop like yours.
How We Evaluated These Apps
We compared each tool against four criteria that matter specifically for an Etsy shop, not a generic freelance business:
- Etsy integration depth: Does it pull orders, fees, and refunds directly from Etsy, or does it require manual CSV upload?
- Cost of goods sold (COGS) and inventory tracking: Can it separate material cost from Etsy fees so you know your real margin per listing?
- 1099-K and tax readiness: Does it organize income the way the IRS expects it reported at tax time?
- Price at low sales volume: Etsy shops often start under $20,000 a year in sales, so we weighted tools that don’t force a seller into an expensive tier before they’ve proven the shop works.
Quick Comparison Table
| App | Best For | Starting Price | Etsy Connection |
|---|---|---|---|
| Craftybase | Handmade sellers tracking materials and COGS | $49/mo | Direct sync |
| Link My Books | Automating payout reconciliation into Xero/QuickBooks | $21/mo (200 orders) | Direct sync |
| A2X | Sellers on Etsy plus other marketplaces | $29/mo | Direct sync |
| Xero | General accounting with built-in inventory | $29/mo | Via connector app |
| QuickBooks Online | Sellers who also work with an outside bookkeeper | $30/mo | Via connector app |
| QuickBooks Solopreneur | A single Etsy shop with no employees | $20/mo | Manual import |
| Wave | New shops that need free income/expense tracking | $0/mo | Manual import |
| FreshBooks | Sellers who also take custom, invoiced orders | $19/mo | Manual import |
| Zoho Books | Budget-conscious sellers who may add other channels later | $0-$20/mo | Via connector app |
| Bench | Sellers who want a human to do the bookkeeping | $299/mo | Manual document upload |
Pricing reflects each provider’s standard monthly rate as of August 2026, not limited-time introductory offers many of these providers run for new signups. Confirm current pricing on the official page before subscribing, since providers change tiers and promotions without notice, and talk to a tax professional about which setup fits your specific filing situation.
1. Craftybase – Best for Handmade Sellers Who Need COGS Tracking
Craftybase is built around the one thing generic accounting software gets wrong for makers: it treats raw materials as inventory, not an expense.
When you buy a spool of wire or a bolt of fabric, Craftybase tracks it as stock until it gets used in a finished product. That lets the app calculate a real cost of goods sold for every listing, not just a lump “supplies” expense at tax time.
What we like:
- Connects directly to Etsy, Shopify, Amazon Handmade, and WooCommerce, syncing orders and updating inventory as sales come in
- Calculates real-time COGS from material costs and manufacturing records, so profit per product accounts for materials, labor, and Etsy fees together
- Handles product variations, refunds, and shipping costs inside the Etsy sync rather than requiring manual correction
What could be better:
- Studio’s $49/month starting price is higher than several other single-purpose tools on this list, which matters for a shop still finding its footing
- It’s a materials-and-inventory tool first, not a full general ledger, so sellers with more complex finances may still need a second app for tax filing
Pricing: Plans start at $49/month for Studio; see Craftybase’s current pricing for the Indie, Business, and Growth tiers. Best for: Sellers who make their own products and need to know true per-item profit after materials and labor. Not ideal if: You resell finished goods with no manufacturing step, where inventory costing matters less than transaction volume.
2. Link My Books – Best for Automating Payout Reconciliation
Link My Books takes the confusing lump-sum deposit Etsy sends to your bank and breaks it back into sales, refunds, fees, and shipping before it lands in your books.
Instead of your accountant guessing what a $412 Etsy payout actually represents, Link My Books itemizes it and posts a clean, bank-matched entry to Xero or QuickBooks Online.
What we like:
- Turns each Etsy payout into a categorized entry automatically, so bank reconciliation takes minutes instead of hours
- Integrates with both Xero and QuickBooks Online, plus other channels like Shopify, eBay, and Amazon if you sell beyond Etsy
- Priced by order volume, so a small shop pays less than a high-volume one
What could be better:
- It’s not standalone accounting software; you still need Xero or QuickBooks underneath it, which adds a second subscription
- The Starter tier caps at 200 orders a month, so a fast-growing shop will need to upgrade tiers
Pricing: Starts at $21/month for the Starter plan (200 orders), scaling to $41/month for 1,000 orders. See Link My Books pricing. Best for: Sellers already using Xero or QuickBooks who are tired of manually splitting out Etsy payouts. Not ideal if: You don’t yet have (or want) a separate general ledger app to connect it to.
3. A2X – Best for Sellers on Etsy Plus Other Marketplaces
A2X does the same payout-splitting job as Link My Books, and it’s the more established option if you sell on Etsy alongside Amazon, Shopify, eBay, or Walmart.
It posts a summarized, categorized version of each payout to your accounting software, matched to the actual bank deposit so nothing gets double-counted.
What we like:
- Single-channel plans for Amazon, Shopify, Etsy, or eBay all start at the same price, so adding a channel later doesn’t require a new tool
- Syncs automatically with both Xero and QuickBooks Online
- Multi-channel tiers exist if a shop grows beyond one platform, without switching providers
What could be better:
- Like Link My Books, it requires a separate accounting subscription underneath it
- Multi-channel pricing climbs quickly once order volume passes 1,000 a month
Pricing: Single-channel plans (including Etsy) start at $29/month. Multi-channel plans start at $89/month for up to 1,000 combined orders across two channels. See A2X’s Etsy pricing page and its multi-channel pricing page. Best for: Sellers running an Etsy shop alongside at least one other marketplace who want one reconciliation tool across all of them. Not ideal if: Etsy is your only channel and you want the lowest possible combined cost; Link My Books’ entry tier undercuts it slightly.
4. Xero – Best General Accounting Platform with Built-In Inventory
Xero is a full general ledger with inventory tracking built into even its cheapest plan, which most competitors reserve for higher tiers.
For a seller who wants one piece of software to run payroll, invoicing, inventory, and tax reporting, Xero covers more ground than the Etsy-specific tools above.
What we like:
- Inventory tracking is included on the entry-level plan rather than gated behind an add-on
- Connects to a wide range of e-commerce apps, including Link My Books and A2X for Etsy-specific reconciliation
- Unlimited users are included on every plan, useful if a spouse or bookkeeper needs access
What could be better:
- Xero itself doesn’t connect to Etsy directly; you need a connector app like Link My Books or A2X layered on top for automatic payout imports
- The Early plan caps monthly invoices and bills, which can be limiting once a shop scales past a hobby level
Pricing: Plans start at $29/month for Early. See Xero’s current pricing. Best for: Sellers who want a real general ledger with inventory tracking and plan to add a payout connector on top. Not ideal if: You want a single subscription that talks to Etsy out of the box with no second app required.
5. QuickBooks Online – Best for Sellers Working With an Outside Bookkeeper
QuickBooks Online is the platform most outside accountants and bookkeepers already know, which matters the day you hand your books to someone else at tax time.
It’s built for a wider range of business types than Etsy-specific tools, with deeper reporting once a shop outgrows basic income and expense tracking.
What we like:
- Familiarity: most CPAs and bookkeeping services already use QuickBooks, which can lower the cost of hiring outside help
- Strong reporting and a large ecosystem of connector apps for e-commerce platforms, including Etsy
- Scales from a single shop into multi-employee operations without switching software
What could be better:
- Etsy doesn’t connect natively; you need a connector app to bring in orders and fees automatically
- The entry-level plan is pricier than Etsy-specific alternatives for a shop with simple bookkeeping needs
Pricing: Plans start at $30/month for Simple Start. See QuickBooks Online pricing. Best for: Sellers who already work with, or plan to hire, an outside bookkeeper or CPA. Not ideal if: You’re a solo shop with straightforward income and expenses and don’t need a full general ledger yet.
6. QuickBooks Solopreneur – Best for a Single Etsy Shop Just Starting Out
QuickBooks Solopreneur is the stripped-down version of QuickBooks built for one-person businesses, with mileage tracking and Schedule C tax prep as the core selling point.
It fits a seller who wants simple income and expense tracking without paying for features they won’t use yet.
What we like:
- Straightforward expense capture and mileage tracking aimed at maximizing self-employment tax deductions
- Built-in Schedule C support makes handing numbers to a tax preparer simpler
- Lower price point than full QuickBooks Online
What could be better:
- Supports only a single shop, with no inventory or asset tracking, so it stops fitting the moment you need to track materials or COGS
- Missing a customizable chart of accounts, which limits how precisely you can categorize transactions
Pricing: $20/month, or $120/year. See QuickBooks Solopreneur pricing. Best for: A single-person Etsy shop that resells or drop-ships rather than manufactures, with simple expense tracking needs. Not ideal if: You need inventory or COGS tracking, or you’re running more than one shop.
7. Wave – Best Free Option for New Shops
Wave gives a brand-new Etsy shop real double-entry accounting, invoicing, and expense tracking for $0 a month, which matters when you haven’t made a sale yet.
The free plan (Wave Starter) covers the basics; the paid Pro tier adds automatic bank imports and deeper reporting once cash flow justifies it.
What we like:
- Wave Starter is genuinely free: invoicing, receipt scanning, income and expense tracking, and reports at no cost
- No feature-limited trial period; the free tier stays free indefinitely
- Simple enough that a first-time seller can set it up without an accounting background
What could be better:
- Automatic bank transaction imports and collaborator access require the paid Pro plan
- No direct Etsy integration; sales data has to be entered or imported manually
- Payroll is a separate paid add-on if the shop ever hires help
Pricing: Wave Starter is $0/month. Wave Pro is $19/month. See Wave’s pricing page and its Starter vs. Pro feature breakdown. Best for: A shop still validating whether it can sell consistently, before committing budget to paid software. Not ideal if: You want automatic Etsy order import; Wave requires manual entry.
8. FreshBooks – Best for Sellers Who Also Take Custom Orders
FreshBooks leans harder into invoicing and client communication than any other tool on this list, which suits Etsy sellers who also do custom or commissioned work outside the platform.
If part of your business involves quoting a custom piece, invoicing a deposit, and tracking a project through to delivery, FreshBooks handles that workflow better than a pure bookkeeping app.
What we like:
- Strong invoicing and estimate tools for sellers who take custom commissions alongside standard Etsy listings
- Time tracking built in, useful for pricing labor-intensive handmade work
- 30-day free trial with full feature access before committing
What could be better:
- The Lite plan caps at 5 billable clients, which can feel restrictive fast if custom orders are a big part of the business
- No native Etsy sync; sales still need to be imported or entered manually
- Extra team members cost $11/month each, adding up if you bring on help
Pricing: Plans start at $19/month for Lite. See FreshBooks pricing. Best for: Sellers who split their time between standard Etsy listings and invoiced custom commissions. Not ideal if: All your sales flow through Etsy checkout with no separate invoicing needed.
9. Zoho Books – Best Budget Pick With Room to Grow
Zoho Books has a genuinely usable free tier for very small shops, then six paid tiers that scale all the way up if the business grows well past Etsy.
It’s a lesser-known name next to QuickBooks and Xero, but the pricing ladder is gentler, which matters for a seller who isn’t ready to commit to a $35-plus monthly bill.
What we like:
- The free plan covers one user and up to 1,000 invoices a year for businesses under $50,000 in annual revenue
- Paid tiers are billed per organization, not per seat, so adding a family member or assistant doesn’t multiply the cost
- Part of the wider Zoho suite, useful if you already use Zoho for email or CRM
What could be better:
- Etsy integration runs through a third-party connector rather than a native sync
- Smaller support and integration ecosystem than QuickBooks or Xero, which can matter if you need niche e-commerce connectors
Pricing: Free plan available; Standard starts at $20/month. See Zoho Books pricing. Best for: A budget-conscious seller who wants room to add users and features later without switching platforms. Not ideal if: You want a household-name platform every bookkeeper already recognizes.
10. Bench – Best for Sellers Who Want a Human to Do the Bookkeeping
Bench pairs software with an actual bookkeeping team that does the categorizing and monthly close for you, which fits a seller who would rather run the shop than reconcile transactions.
You upload statements and receipts; a bookkeeper produces monthly financial statements and, on the higher tier, handles tax filing.
What we like:
- Removes the DIY bookkeeping work entirely, useful for a seller with limited time or no interest in learning accounting software
- Premium tier bundles tax filing with bookkeeping, consolidating two services into one relationship
- Human review can catch miscategorized transactions that self-serve software would miss
What could be better:
- At $299/month for Essential, it’s by far the most expensive option here, and hard to justify for a shop earning under roughly $50,000 a year
- Bench abruptly shut down in December 2024 before being acquired and relaunched by Employer.com days later, which is worth knowing before trusting a service with your financial records
- No direct Etsy sync; it works from uploaded statements rather than live order data
Pricing: Essential is $299/month; Premium (with tax filing) is $499/month. See Bench’s pricing page. Best for: An established shop with real revenue that wants bookkeeping off its plate entirely. Not ideal if: You’re a newer or smaller shop where $299 a month would eat too much of the margin you’re trying to protect.
How to Choose the Right App for Your Shop
- Do you manufacture what you sell, or resell finished goods? If you buy materials and make products, prioritize Craftybase for COGS tracking. If you resell or drop-ship, QuickBooks Solopreneur or Wave cover the basics without paying for inventory features you won’t use.
- Do you sell on more than one marketplace? If Etsy is one of several channels, A2X or Link My Books plus Xero or QuickBooks gives you one reconciliation layer across all of them. If Etsy is your only channel, a lighter single-app option is enough.
- What’s your monthly sales volume? Under a few thousand dollars a month, Wave’s free tier or Zoho’s free plan removes cost as a barrier. As payout volume grows past a few hundred orders, a connector like Link My Books or A2X starts paying for itself in time saved.
- Do you want to do the bookkeeping yourself, or hand it off? Every option above except Bench assumes you’re doing your own data entry or reconciliation. If that’s not how you want to spend your time, Bench’s flat monthly fee buys that time back.
Frequently Asked Questions
Which bookkeeping app is best for a brand-new Etsy shop?
Wave is the strongest starting point because the core plan is free and covers basic income and expense tracking, which is often all a new shop needs before it has consistent sales volume.
Which app is cheapest overall?
Wave’s free Starter plan and Zoho Books’ free tier are the only $0 options on this list, though both require manual data entry from Etsy since neither connects to it directly.
Do I need special software for Etsy’s 1099-K reporting?
As of 2026, Etsy is required to issue a Form 1099-K to sellers who cross $20,000 in gross payments and more than 200 transactions in a calendar year. That’s the threshold the IRS confirmed after the One Big Beautiful Bill Act reversed a planned drop to $600. Most tools on this list, including QuickBooks Solopreneur and Wave, organize income in a way that makes filling out a Schedule C easier regardless of whether you personally receive a 1099-K.
What’s the difference between Craftybase and a general accounting app like QuickBooks?
Craftybase is purpose-built to track raw materials as inventory and calculate cost of goods sold per finished product. General accounting apps like QuickBooks track income and expenses but don’t automatically connect a spool of wire you bought in March to the earring you sold in June.
Can I switch bookkeeping apps later without losing my records?
Most of these platforms allow data export in standard formats like CSV, and services like QuickBooks and Xero support importing historical transactions. Switching mid-year is more work than starting the year with the right tool, so it’s worth choosing carefully upfront.
Do any of these apps connect directly to Etsy without a third-party tool?
Craftybase connects directly to Etsy. Link My Books and A2X also connect directly to Etsy, but they’re reconciliation layers that feed into a separate general ledger like Xero or QuickBooks rather than full accounting software on their own.
Is Bench worth it for a small Etsy shop?
At $299/month for the Essential plan, Bench is hard to justify for a shop earning under roughly $50,000 a year. It becomes more reasonable once a shop has grown enough that the seller’s time is worth more than the monthly fee.
Which app handles multiple sales channels best, not just Etsy?
A2X supports the widest range of marketplaces, including Amazon, Shopify, eBay, and Walmart, alongside Etsy, with multi-channel pricing tiers built for sellers running more than one storefront.
Do I still need a tax professional if I use one of these apps?
Yes. These tools organize your numbers and, in some cases, prep the underlying reports, but none of them replace the judgment of a CPA or tax preparer, especially around deductions specific to your situation or state.
What happens if I don’t track cost of goods sold separately from other expenses?
You can still file taxes without separate COGS tracking, but you’ll have a much harder time knowing your true profit margin per product, which makes pricing decisions and Etsy fee increases harder to plan around.
Are there hidden costs with these apps beyond the listed monthly price?
Yes, in several cases. Wave charges extra for payroll if you ever hire help. FreshBooks charges $11/month per additional team member. Link My Books and A2X both scale price with order volume, so a growing shop should check the next pricing tier before it becomes a surprise.
The Bottom Line
If you make what you sell and need to know your real margin after materials and Etsy fees, get started with Craftybase. If you already use Xero or QuickBooks and just want Etsy payouts reconciled automatically, compare Link My Books and A2X to see which fits your order volume. If you’re testing whether your shop can sell consistently before spending anything on software, start with Wave’s free plan and upgrade once the sales volume justifies it.
Whichever tool you pick, the goal is the same: know what Etsy’s fees actually cost you before they show up as a surprise at tax time. For the fee side of that math, see our full breakdown of Etsy’s fee structure.
Related Articles
- Etsy Fee Increases in 2026: The Full Seller Breakdown – the fee math these bookkeeping apps are built to track.
- How to Price Handmade Products for Real Profit – a pricing formula that accounts for materials, time, and fees.
- Etsy vs Shopify for Handmade Sellers: Fees Compared – how the numbers change if you sell outside Etsy too.
- 12 Best Email Marketing Tools for Etsy Sellers – another category of tools worth budgeting for alongside bookkeeping.
- Etsy vs Amazon Handmade: Which Fits Your Shop – relevant if you’re weighing a second marketplace and multi-channel bookkeeping.
About This Research
Nadia Cole has spent the better part of a decade elbow-deep in marketplace algorithms, first optimizing Etsy shops for other sellers, then writing about what actually works instead of what sounds good in a blog post.
This article is based on a direct comparison of each provider’s own published pricing and feature pages, checked in August 2026, cross-referenced against Etsy’s own published fee and 1099-K policies rather than secondhand summaries.
Content reviewed and updated: 2026-08-17
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