Avalara > Blog > Sales Tax > 5 Tools to Help Etsy Sellers with Sales Taxes

5 Tools to Help Etsy Sellers with Sales Taxes

  • Mar 3, 2016 | Gene Marks

Etsy sellers, like all ecommerce sellers, know that sales taxes can be a pain.

You pour time, energy, and creativity into crafting your products, and sometimes there’s just no gas left in the tank to deal with the business side of things. You try to MacGyver the whole sales tax situation, but it just seems so complicated.

Messing up is, of course, not an option.

Well, breathe easier while you check out these five tools to help you with sales taxes. From computing taxes to submitting returns come tax time, there’s something out there to pull you through.

1. Sales tax rate research content from Avalara

With both a sales tax calculator and downloadable state sales tax rate tables, our extensive repository of sales tax rate data, tools, and supporting content can make tax compliance research quick and easy.

The sales tax calculator is a free tool that returns sales tax rates beyond county, zip code, and state levels. Just enter an exact address and get the sales tax rate right away.

2. Quickbooks and Xero

Let’s face it, keeping on top of your finances is cumbersome.

Pen-and-paper accounting? Definitely not for everyone. Even Microsoft Excel can leave you wanting.

Besides, maybe numbers weren’t ever your thing.

Thankfully, accounting software like Xero and Quickbooks are easy to use. By recording all the money that flows in and out of your business, manual data entry is reduced and you can focus on running your Etsy store.

Both Xero and Quickbooks import your bank statements automatically and sync with your bank accounts.

When you’re on top of the numbers, it’s easier to figure out how much sales taxes to remit and report come tax time. If you want to automate that too, most accounting software can be integrated with sales tax automation tools as well.

3. Avalara TrustFile

Want to automate sales tax prep? Done.

Avalara TrustFile is a sales tax automation tool that prepares sales tax reports for you. It pulls the data straight from Etsy and gives you a detailed overview of every state you collected sales taxes from. It also produces ready-to-file returns for you to make sales tax filing a little less painful.

TrustFile also offers to file your first sales tax return for free so you can try the service out first.

4. Zapier

Zapier is an amazing tool that allows you to automate tasks between apps through workflows (Zaps), even connecting those that are not integrated with each other. It may seem to be one of those tools that only the super tech-savvy can use, but a bit of reading will have you automating tasks in no time.

For instance, you can have your bookkeeping software pull data from Etsy even when it's not listed as an App for Etsy. There are no standard Zaps for Etsy just yet, but you can easily create your own to use.

5. Google Drive

Keeping everything organized is key come tax time. Even when you can automate almost everything you need for tax filing, it’s always better to have everything in one place as a backup.

Google Drive is a reliable storage solution that saves all your data on the cloud.

You could take photos of receipts and upload them to Google Drive. You can save income reports and business expenses in dedicated folders too.

Probably the biggest upside of putting your files on Google Drive is its searchability. If you’re looking for a file for a certain product or even a certain buyer from a particular address, you can use the Google search bar inside Drive and it will search even within files. You can search Google Drive across different devices, too.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
It's Gene!
Avalara Author
Gene Marks
It's Gene!
Avalara Author Gene Marks
Gene Marks is a columnist, book author, CPA, and owner of Marks Group PC, a technology and consulting services firm. Gene writes every day on business, politics, and public policy for the Washington Post and weekly for Forbes, Inc. Magazine, Entrepreneur, and the Huffington Post.