I work for a company that recently purchased 3 properties for short term rental. We use a company called Evolve for our bookings. They list the properties, collect payment and remit payment to us. They collect the nightly fee, a cleaning fee, and taxes. They withhold their 10% management fee from the total and remit the rest to us. We are responsible for remitting occupancy tax to the state and city. I am trying to figure out the best way to record the income, expense and tax liability. I think I need to create a sales receipt but am new to QBO and not quite sure how to do this. Any help would be greatly appreciated.
Let me help you choose whats works best for you depending on your business needs.
First off, the sales receipt you mentioned is used to track business income and only a money-in transaction.
Now, we have Projects that are used to track the income, expenses, and profitability of a work in progress. On the other hand, we also have Tags used to label an income or expense and the money made for your business.
That being said, here are the references you can use to learn more about the difference between each feature:
Additionally, I've also included this helpful article to get a better view of your business financial status: Run basic financial reports.
If you have any other concerns, please let me know by leaving any comments below. I'll be here to help. Stay safe and well!
I don't think I want to use projects or tags. I am using classes to track the expense/income related to the properties. My problem is that I'm not sure how to record the funds received since it is not all income. For example: A typical deposit from Evolve (management co) for a 2 night stay would include:
Rental per night $400 * 2 nts = $800
+ Cleaning fee per stay $200
+ 7% Local Occ tax $70
+ 6% State Occ tax $60
- 10% Mgmt fee $100
Net deposit to our bank account $1030
The funds are typically deposited to our bank account 2 days after the guest checks out.
If I create a sales receipt with the gross amount less the amounts collected for taxes as a payable, will that record the income and liabilities for the taxes?
Thanks for adding more details about your concern, dmckinney1003.
Based on the information, we’ll have to create a sales receipt and expense to properly track the items. If you haven’t added the products, go to the Product and Services page to set them up.
To set up the rental and cleaning fee:
For the management fee, perform the recommended steps in this article: Add service fees manually to invoices.
In regard to the local taxes, QuickBooks automatically calculates the total tax rate for each sale based on the information below. Make sure to set up the Sales Tax feature to get the accurate rate for your sale.
When you’re ready, create a sales receipt. Here’s how:
I’ve included a screenshot of how it should look like.
Performing these steps will record the income and liabilities for your taxes. You can also bookmark this article for future reference. It contains resources to help you easily use the Class Tracking feature in handling your business income, expenses, or profitability: Get started with class tracking in QuickBooks Online.
Stay in touch if you need further assistance with any of these steps. I’ll be right here ready to lend a helping hand. Enjoy the rest of the day.
Welcome to the thread, @JulieS3.
I'd be happy to convert the steps provided by my colleague Rasa-LilaM into the QuickBooks Desktop (QBDT) version.
To create an item in QBDT, here's what you'll need to do:
Once done, manually add the service item created to the transaction. Then, for you to create sales receipts, follow the below steps:
For more details about the steps I've provided above, see the below articles:
Here's also an article about how class tracking works in QBDT: Set up and use class tracking in QuickBooks Desktop.
Don’t hesitate to click the Reply button if you have other concerns. I’ll get back to make sure you’re taken care of. Have a good one.