Tip: To get the full benefit of Accounts and Taxes mapping, wait for payouts to come in after you connect your account to Etsy and your accounting software. It's best to have a variety of payouts for this feature to draw from.
The Accounts and Taxes feature allows you to map your Etsy transactions to your accounting. It does this by accessing your Chart of Accounts or by creating accounts specific to Etsy transactions directly from A2X in your accounting system. (For UK, EU, AU, NZ, or SG sellers follow the instructions HERE for VAT and GST mapping)
A2X can create generic accounts in your Chart of Accounts
When you first go to set up your Accounts and Taxes mapping, you will see that A2X can create a number of generic default accounts for you to map transactions to.
Click 'Confirm' to allow A2X to create the following list of accounts in your accounting system
Next, bulk update your tax settings in A2X
Step 1: Enable Bulk Actions
Step 2: Choose tax Exempt or No Tax.
(For UK, EU, AU, NZ, or SG sellers follow the instructions HERE for VAT and GST mapping)
The default accounts created by A2X will assign your transactions into the account types, that will generate a reasonable set of financial reports without needing to spend a lot of time on the account mapping process.
Account Types for generic accounts created by A2X
The names of the account types created in Xero and in QuickBooks are slightly different but, in accounting terms, they are the same.
The table below shows the basic account types for each accounting solution so you can find them in your reports:
Expenses and Sales or Revenue or Income accounts will be on your Income Statements (Profit and Loss). Current assets and Current liabilities will be on your Balance Sheets.
By saving the mappings, the chosen accounts will be created in Xero or QuickBooks Online and also mapped to your settlement transactions after you refresh them. With this setup task complete, you are ready to send your first invoice/journal!
Because A2X is connected to your accounting software, it is importing your complete chart of accounts. If A2X detects an account that already matches the default, then it will be pre-selected.
Instead of our generic default accounts, you can select your own account for any transaction type. Just click on the "x" and then down arrow to open the dropdown, and then scroll to find and select the account from your Chart of Accounts list.
Please Note: A2X uses account codes that indicate the accounts were created by A2X such as: "a2xetship" and "a2xettax". This will differentiate them from the default codes used in the accounting systems, which are often numeric sequences such as 4000, 4100, etc.
Well done, you've mapped your Account Types in A2X!
Add tracking codes or classes by Etsy marketplace in your invoice settings
To generate custom reports by marketplace like this example below:
Tips and Tricks
Learn the ins and outs of the mapping page and other features available for advanced mapping, tips and tricks HERE
Once you have mapped your accounts and taxes for Etsy transactions, you are ready to review and import your first Invoice to your accounting system.
If you make mapping changes, be sure to save your mappings again.
Next Article: Step 5 - Send your first Invoice to your accounting system.
Do you need help with your A2X set up?
Are you struggling with setting up your Accounts and Taxes page and you would like some help from an accountant or bookkeeper? We have a directory full of expert accounting/bookkeeping partners around the world who are ready to assist with your e-commerce accounting and A2X.
Please click HERE to find an expert
If you have further questions or need assistance, feel free to reach out to us at firstname.lastname@example.org. We would be glad to help you.
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