As an Etsy seller, understanding all your shop’s expenses is essential. The External Costs feature lets you track external expenses like production, labor, and shipping, which aren’t captured by Etsy’s platform. By adding these costs, you can view a full profit and loss statement in your financial report, providing a true and accurate picture of your shop’s financial performance.
Adding External Costs
To start, you’ll need to set up a cost account, and then you can add costs either manually or by importing them via CSV.
Set Up a Cost Account
Before adding individual costs, you need to first create a cost account to categorize your expenses:
Navigate to Cost Accounts: In the External Costs Tool, go to the “Accounts” tab.
Create a New Account: Click “Add Account” and enter a name for your cost account. For example, you might create accounts such as “Production Costs,” “Labor Costs,” or “Shipping Costs.”
Save the Account: Once you’ve named the account, click “Add Account” to save it. This account will now be available when you enter or import your costs.
Adding Costs Manually
Once your cost accounts are set up, you can start adding individual costs manually:
Select the Account: When adding a new cost, choose the relevant account (e.g., “Production Costs”).
Enter the Cost Details: Fill in the date, amount, and a brief description of the expense.
Save the Entry: After entering all necessary details, click “Add Cost” to save the entry to your records.
Tip: You can aggregate your costs for the entire month and add them as a single record, which simplifies tracking on a monthly basis. However, this approach means you won’t see accurate daily profit details, as all costs will be assigned to one date.
The advantage is that it simplifies your bookkeeping by allowing you to add just one manual record instead of multiple entries for each day or expense. If you need to track or view costs accurately on a daily basis, we recommend using the CSV import option instead.
Importing Costs via CSV
For sellers with multiple expenses, using the CSV import feature can save time and ensure accuracy. Here’s how to do it:
Download the CSV Template: In the External Costs Tool, click “Import Costs” and download the provided CSV template. This template will help you format your data correctly.
Fill in the Template: Open the template in your preferred spreadsheet software and enter your expenses. Here’s a breakdown of the columns:
Date: Enter the date of the expense in the format MM/DD/YYYY.
Amount: Specify the cost amount.
Description: Provide a brief description of the expense (e.g., “Production cost order #123”).
Account: Enter the cost account that this expense belongs to (e.g., “Production Cost”). Ensure this matches the accounts you have already created in Alura.
Shop (Optional): If you manage multiple shops, use this column to specify which shop the expense applies to. If left blank, the cost will be assigned to your active shop by default.
Upload the CSV File: Once your costs are entered and verified, save the file. Return to Alura, click on “Import Costs,” and then drag and drop your CSV file into the designated area or click to upload.
Validate and Import: Alura will automatically validate your file. Once validated, the import will begin, and you’ll be notified when it’s complete.
Managing and Viewing Your Costs
Once you’ve added your costs, you can easily manage and review them:
Managing Costs
After adding costs, they will appear in the cost table within the External Costs Tool. You can manage these entries efficiently by using the search and filter options to find specific costs. Additionally, you have the flexibility to edit or delete costs as needed by selecting the corresponding options within the table.
External cost report
To gain a deeper understanding of your expenses, utilize the External Costs Report. This feature provides detailed insights into your external costs, enabling you to analyze spending patterns and assess the impact of these costs on your shop’s profitability. By comparing costs across different time periods, you can make informed decisions to optimize your business performance.
See Your True Etsy Profits
Now that you’ve added your external costs, you’re one step closer to fully understanding your Etsy shop’s financial health. By incorporating these costs, you can get a complete overview of your profit and performance. Navigate to either the Analytics Overview or Financial Report page within Alura, where your costs are now automatically included.
This means you can finally see your true Etsy profits, factoring in all expenses—both internal and external. Start adding your costs today and take advantage of these insights to make informed decisions that drive your business forward. Seeing the complete picture of your profitability has never been easier, and it’s the key to unlocking your shop’s full potential.