I'm trying to get some clarification on setting up my Quickbooks account. I manage two condos on Airbnb for the same condo owner. The Airbnb payout comes directly to me, I take a %, deduct cleaning fees and any other expenses for supplies and repairs and then distribute the balance to the owner. I've previously just used an Excel spreadsheet but I am looking to streamline this process in QB and have better tracking.
I've set up the company and set up each unit as a class so I can track the income/expenses for each unit and produce a P&L. I also have set up Airbnb as a customer and the condo owner as a vendor. I am lost on the best way to record these transactions since it's not the typical way of paying a vendor directly for an invoice received.
I just want to make sure I correctly expense any fee's deducted by AirBnb, my management fee and then any expenses incurred. Any help would be greatly appreciated!
Setting up the units as classes and the owners as vendors is a good idea. You will need to provide the owners with a statement so they can classify their expenses and you are also required to provide a 1099-Misc for rent collected in total. Set up two items. One is for your management fee that would hit your income account and the second would be for your cleaning fee that would also hit your income account. You should have a cost of goods account named something like Rent Collected/Rent Disbursed. Receive rent collected into this account since it is not your rental income. Write the check to the owner. The entire amount of rent collected should be on the check so it zeroes out this account. Click over the items tab. Enter your management fee item as a negative amount and your cleaning fee as a negative amount. Recalculate your check (upper right) so the check amount represents the rent less your charges.