Etsy to QBO integration using Synder Part 2

Setting up the Etsy to QuickBooks Integration with Synder

In our first article we discussed how to add "Charts of Accounts" related to Etsy Store in QBO and activate the location tracking functionality QBO to track the multi Etsy Stores financial performance. In this article we will explore how to integrate Etsy to QBO using Synder app and how to sync transactions in to QBO.

Synder is an app developed by CloudBusiness Inc. to create a link between your accounting software and various sales channels, enabling you to automate the reconciliation of sales and expense transactions. In this next section we will discuss using Synder to integrate and automate transactions between Etsy and QBO, however Synder works with a long list of other eCommmerce Sales Channels and Payment Processors. We will explore some of these other integrations in separate blog posts.

Below are step by step instructions on how to add the app and begin to configure it. Before beginning below, please create an account on Synder.

Log into Synder App select Settings and select Add Payment Platform

From dropdown list select Etsy as Payment Platform and click Connect, and follow the prompts to connect to Etsy

Set the "Synchronize automatically ongoing transactions" to OFF, then you can proceed without having to set everything correctly in this small dialog box. Click "I'm ok to start" 

You should be redirected to the Settings>'Configure' screen (next to the Etsy payment platform)

Under the General Tab Select the relevant location/store created in QBO and continue with each tab below general to complete Etsy integration with Synder.

Most of the transaction types in Synder can be added one by one as shown in the above screenshot. In this way, you can easily change the location, and account classification of each transaction type. However for taxes collected and remitted by Etsy, and Shipping revenue Synder works a bit differently.

For these two transaction types you should sync one sale in Synder, then find the newly created product ("Etsy Taxes" and "Etsy Shipping" in QuickBooks and edit the income account to match the chart of accounts you wish. Then rollback, and re-sync on Synder. 

Due to marketplace facilitator laws in many states, Etsy is currently calculating, collecting, and remitting state sales tax on all orders shipped to many states. As a Etsy seller's you don't need to remit taxes to tax agencies which Etsy is properly registered and collecting tax as a marketplace facilitator. Therefore, it is important to transfer sales tax collected amount to tax clearing account in QBO where you can net off with tax remitted amount by Etsy.

To do this you need to make sure the Taxes setting Apply Taxes in Synder is set to off and select Marketplace Facilitator Tax Category as Etsy Sales Tax Clearing.

Also you are able to create additional settings for each transaction type, this will allow you to Sync each transaction to a separate account. In the screenshot below, we have shown our preferred setup method for Etsy. You can find the matching chart of accounts in our downloadable excel file HERE.

Also notice how we have left the synchronize automatically to OFF, we will leave this until we have tested each transaction type and ensured everything is syncing properly. Once setup is finalized this will be turned on to sync future transactions automatically.

Sync Transactions into QBO

Once you have connected Etsy with Synder and created the relevant settings, you can proceed to sync your transactions from Synder to Etsy. 

Go to Transactions in Synder. You will see Sync status as Ready to Sync under each transaction type

Select Ready to Sync and Sync from the drop down list

The Sync status will change to Synced. Next select Show Details

Here you can see the Sync details and are able to click Show in to open the corresponding QBO items

From QBO select the relevant Etsy bank account and select view register. From there you can see the transactions that have been automatically split by Synder

How to Match Etsy deposit to bank account in QBO

Etsy deposits to your bank account appear as Payout in Synder

Once the Payout transaction is synced in Synder, you will be able to see and Match these transactions in the corresponding bank account

How to reconcile transactions between Etsy and QBO

To reconcile your transactions between Etsy and QBO, you should navigate to your Etsy Clearing Bank account, and check your month end balance to ensure it matches the balance on the Etsy Statement. This can be done in the Etsy store backend, however without access you will need to have the statement CSV file.

You can find the Etsy monthly statements by navigating to Finances > Payment Account > See all monthly statements

The Monthly CSV statement can come in useful for troubleshooting when the QBO Etsy Clearing Account is not matching the Etsy balance on month end. However, the statement CSV does not have a running balance included and therefore it is quicker to see the Etsy balance on a specific date using the Etsy backend. 

If the accounts are not balancing, you can investigate further by using the "Orders" CSV file found in Settings>Options>Download Data

Tip: to get a full year of data, leave the month blank and only select the year

Etsy to QBO using Synder Conclusion

Synder is a powerful and flexible way to integrate between payment processors, online stores and accounting software. It enables full control over how you integrate various transaction types and allows synchronization of individual transactions instead of posting periodic journal entries. For these reasons we really like Synder as an integration option. However, there are several other software apps that help to integrate and automate transactions between Etsy and QuickBooks. We will explore more of these apps, including Intuit's "Sync with Etsy app" and "A2X for Etsy" in other blog posts.