Some Etsy sellers expect a rocky tax-reporting season ahead due to a glitch they say has remained unfixed since the spring.
The problem impacts sellers who use third-party bookkeeping programs that integrate with Etsy that are designed to help sellers keep track of their sales and expenses.
"For the past nine months, certain types of Etsy fees have not been automatically recorded, so shop owners who subscribe to bookkeeping services such as GoDaddy, Crafty Base, and QuickBooks have had to make manual corrections to their monthly data," a seller wrote to EcommerceBytes on Tuesday, adding that some sellers don't even know about the issue.
"I understand that business owners shouldn't be lulled into a false sense of security just because they have an online bookkeeping subscription to crunch numbers for them. Mistakes certainly do happen, and a certain amount of manual corrections are required," the reader said. However, they said they were furious about the lack of transparency about the issue. "The data flaws started in May, and at no time in the past nine months did Etsy or GoDaddy send out a mass email to all potentially affected subscribers to alert them to the problem so that they can start making manual corrections."
"Adding insult to injury, Etsy has been bombarding my inbox and my seller dashboard for quite a while with ads for a discounted subscription to QuickBooks, but as I mentioned earlier, QuickBooks was affected by the same data errors affecting GoDaddy and other bookkeeping providers."
Sellers report that GoDaddy announced a workaround for the Etsy API problem on Monday, "but it's a little early to tell if it's working out for everybody," the reader said.
Sellers have been discussing the issue for months, and GoDaddy's announcement this week reignited the discussions this week, including the following two threads on the Etsy discussion boards:
One seller wrote that they received the email from GoDaddy announcing the solution to the "notorious" bookkeeping problem, but have yet to implement it. The seller explained they were concerned because their 2019 data had multiple types of errors, and they weren't clear on which errors were going to be fixed by the new data feed.
"I spent HOURS making manual corrections to all the different types of errors I found for the 2019 year, and I don't want to have the new feed re-set everything if that means I have to make certain types of manual corrections all over again," the seller explained, "For example, some of my state sales tax for Etsy wasn't automatically done right, so I had to make manual corrections."
This is a tough time of year for anyone to have concerns about the integrity of revenue and expense reporting, with the April 15th tax deadline just 10 weeks away.
The reader who alerted us to the problem signed their missive, "Financially in the Black but So Angry that I'm Seeing Red."