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Level 1

AirBnb Income

Hello,

 

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.

 

Thank you.

 

-K

Solved
Best answer April 12, 2020

Best Answers
QuickBooks Team

AirBnb Income

Hello there, Keuma.

 

If you have set up the tenants as customers, then you can record the rent income as invoices (if you receive payments at a later date) or sales receipt (if you receive their payments right away).

 

I've got an article here that you can use for reference: Record transactions for a property management company.

 

I'd still recommend consulting your accountant to ensure the accuracy of your financial reports.

 

Please don't hesitate to reach out to me if you have any other questions or concerns. Thanks.

View solution in original post

5 Comments
QuickBooks Team

AirBnb Income

Hello there, Keuma.

 

If you have set up the tenants as customers, then you can record the rent income as invoices (if you receive payments at a later date) or sales receipt (if you receive their payments right away).

 

I've got an article here that you can use for reference: Record transactions for a property management company.

 

I'd still recommend consulting your accountant to ensure the accuracy of your financial reports.

 

Please don't hesitate to reach out to me if you have any other questions or concerns. Thanks.

View solution in original post

Level 2

AirBnb Income

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.

 

When the money is deposited into the bank account from Airbnb, the deposit is then matched with the respective invoices. In many cases, a Clearing Account is used to record the invoice payments and transfer deposits. I've written article with more details on the Clearing Account here: https://support.bnbtally.com/en/articles/3562232-payment-clearing-account-overview-for-airbnb-quickb...

 

Again, great question!

 

Respectfully,

Jason

BNBTALLY: https://www.bnbtally.com/airbnb/quickbooks/integration

Level 1

AirBnb Income

Why would the AirBnB fee be recorded as Cost of Goods rather than a Professional Fees expense?

Just curious, since you are not spending this fee in purchasing goods, but rather having to pay it to the AirBnB platform for their service.

Level 2

AirBnb Income

Hi @jenr8er , more specifically, for the Airbnb Service Fee, we see many of our users using the detailed account type "Other Costs of Services - COS" which is found under "Costs of Goods Sold" account type when creating a new account within their QuickBooks chart of accounts. Unfortunately QuickBooks does not have a "Cost of Revenue" option or a more general "Direct Cost" option. But since the Airbnb Service Fee is a Direct Cost of obtaining the reservation, this cost would not exist if the reservation had not taken place. It is therefore very commonly classified as a Direct Cost of obtaining the income of the reservation and the closest account type in QuickBooks ("Other Costs of Services - COS") is used by many to describe it as such. At least this is how most accountants we work with using Bnbtally interpret it - a direct cost of selling the good/service. Most don't agree with Airbnb Service Fee being a general expense and don't want it reported as such on their P&L statements. However, we do understand that some accountants have a different interpretation and may want to classify differently - which is totally fine. Bnbtally will support whatever account type you choose.

Level 1

AirBnb Income

Thanks for the clarification. That makes sense, and is obviously more beneficial for tax purposes.

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