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I'm a seller on etsy and the shipping fees are deducted from my 'wallet' before income is deposited. How do I account for this?

AI accountant’s answer:

Your revenue will be recorded at the gross amount and any shipping fees will be recorded as an expense. For example, if you sold an item on Etsy for $100 but where charged a $5 shipping charge and received $95 in your wallet, the $100 will be recorded as revenue and $5 will be recorded as shipping expense. You'll want to download a gross sales report, or similar report, that shows your gross sales and any expenses deducted from the sales price.

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Melissa Pedigo, CPA

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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