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K
Kael
November 28, 2021
Question

Recording Business Income from Etsy/Bank Account

  • November 28, 2021
  • 1 reply
  • 0 views

Hi,

 

I currently have a Bank Account and an Etsy account linked to Quickbooks. QB deals with all Etsy transactions fine with any Income automatically set to Business Income and a deposit into my bank as a Transfer which is fine.

 

On my bank account transactions though what should I classify the transaction as? Should it be a Transfer or Business Income? Wouldn't setting Business Income mean it's would count it twice?

 

Thanks for any help,

Kael

1 reply

Angelyn_T
Angelyn_T
November 28, 2021

Thank you for adding a post, Kael. I can share with you some information about classifying your bank transaction in QuickBooks Self-Employed (QBSE).

 

Etsy and your bank have a unique connection with QBSE. You need to match the categories of your transactions to avoid duplicate entries. In your case, you can classify the bank deposit as business income. Sometimes, there can be crossed wires where transactions get downloaded more than once. You'll have to go through your online banking history to identify and exclude duplicate entries. Here's how: Handle duplicate transactions in QuickBooks Self-Employed.

 

On the other hand, you can learn more about categorising download transactions through this link: Categorise transactions in QuickBooks Self-Employed.

 

In case you want to split a single transaction between a business and personal, or into multiple categories. Use this article as your guide: Split transactions in QuickBooks Self-Employed.

 

Let me know if you have any other questions about classifying your bank transactions, I'll be right here to help. Keep safe!

K
KaelAuthor
November 29, 2021
Hi Angelyn_T,
 
Thanks for the reply, I read through the articles but I don't think they are quite the issue I'm having. It's probably my explanation so I'll put a better example :)
 
I have an order from Etsy for £10 with Etsy Fees of £1 so QBSE automatically categorized it as such:-
Transaction Order #1 Amount £10Type Business Category Business Income
Transaction Order Fee #1Amount £1Type Business Category Professional fees
Transaction Deposit Order #1Amount £9Type Transfer Category Transfer 
 
When I import my Bank Account into QBSE I have manually categorized it like this:-
Transaction Bank Credit EtsyAmount £9Type Business Category Business Income
 
My issue (and question), is QBSE clever enough to know that both Order #1 and Bank Credit Etsy are essentially the same things? Or have I screwed up and categorized them wrong?
 
Would my tax report show income as £10 or show as £19?
 
Thanks for the help!
Kael
C
ChristineJoieR
November 29, 2021

I appreciate you for taking some effort here in the community, @Kael.

 

I understand that you want to know if your transaction is categorised correctly and how this will show on your report.

 

It depends on how you categorise a transaction. If you categorise it as income, then it will reflect on the reports. As for sub-accounts, you'll see their transactions separately.

 

Feel free to exclude or delete categorized accounts if it causes duplicate and split transactions, and put them to the right accounts.

 

Here’s a way on how to edit an existing account to a subaccount:

 

1. Navigate to Settings and select Chart of Accounts.
2. Look for the account and tick the Dropdown Arrow ▼ in the Action column. Then hit Edit.
3. Go to Is sub-account and then enter the parent account.
4. Select Save and Close.

 

Here are other tips on how to create subaccounts in QuickBooks Online.

 

I’ve also added this article to guide you more about categorising income and expense accounts.

 

Additionally, I suggest you to contact your accountant to guide you fully concerning taxes.

 

Drop a comment below if you need more clarification with regards to categorising accounts. I am always here to assist you. Have a wonderful day ahead @ Kael!

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