I recently turned my rental into a short term rental. How do I record the payments for the stays in my home. There aren't any invoices created, its just a deposit that shows up in my account several times throughout the month. Im thinking just use the sales receipt function? Im not entirely sure though.
Hi @Keuma, I'd be happy to answer your question. A bit about me.. my company provides a software product for accountants to integrate Airbnb automatically with Quickbooks (see BNBTALLY:https://www.bnbtally.com/airbnb/quickbooks/integration). I'd be glad to share from a high level what we see many accountants do with Airbnb income for their clients who own the home. Please note that every business is different and you should consult your accountant for your specific scenario. With that said...
For each reservation, an invoice is created and the guest is set as the customer of the invoice. Within each invoice, the following line items are separated and assigned to the proper product/service code as follows...
Accommodation Fare -> Income - Airbnb - Accommodation Fare
Cleaning Fee -> Income - Airbnb - Cleaning Fee
Host Service Fee -> COGS - Airbnb - Host Service Fee
The host service fee is the 3% fee that Airbnb charges for each reservation. This ends up as a negative number and is recorded as a Cost of Goods Sold within the same invoice which helps track the direct costs of using Airbnb. The accommodation fare is tracked separate from the cleaning fee since the accommodation fare is considered the core income of the rental.