cancel
Showing results for 
Search instead for 
Did you mean: 
SupaMonkey
Level 2

Quickbooks for Airbnb - How To setup?

Hi Guys,

New host with just one property but another on the way beginning 2019.

Just wondering how to best setup Quickbooks with Airbnb?

 

Airbnb takes care of the payment processing, (eg: reservation = gross $1000), then deducts their fee (eg: 10$) and provides me with an invoice for the fee and then does a payout to my bank account for the net amount (eg: 990$)

 

I've setup Quickbooks Classes so that I can track the various expenses related to 'property a' or 'property b' - but I'm a little stuck as to how to process the whole Airbnb side of things.

Should I:
1) Setup Airbnb as a 'bank account' under my Chart of Accounts.

 - Process the gross amount into 'Airbnb' bank account

 - Enter journal entries for service fee's on a 'commissions' expense account

 - Do a 'bank transfer' from the "Airbnb bank account" to my actual bank account for the amount paid out?
or
2) Have Airbnb setup as a supplier and a customer

 - Create invoices to Airbnb (customer) for the net amount and set invoice as paid / create payment to my actual bank account for the GROSS amount

 - Enter the Airbnb (supplier) invoices / bills and pay from the gross amount

(I dont like this method because it wont actually line up properly when it comes to reconciling the bank account)

or

3) Something else entirely?

 

Thanks in advance...

Solved
Best answer December 14, 2018

Best Answers
qbteachmt
Level 15

Quickbooks for Airbnb - How To setup?

This: "3) Something else entirely?"

 

All of the above, except Stop trying to use JE for anything here.

 

Air BNB is your Vendor, because they Charge you. If you are not tracking by actual customer name, then Air BNB is your Customer name, because they are how/who you Sold to.

 

Class is fine for tracking two properties.

 

The Chart of accounts is the income and expense accounts, but not Micro-managed Details. Use Items. Example:

 

Janitorial vs landscape are Service Items you incur, for each property (Class) and the Service Items are linked to the Same Expense account = professional services or contract labor.

 

Air BNB is also a Bank, because they act as your financial institution and hold your funds In and manage funds Out.

 

The Sales Receipt (not Invoices) is deposited to the Air BNB bank. The expense you incur is Write Check (not JE) on that bank and they are Vendor Name = Payee for Fees they charged you.

 

 

Real Settlement to Checking is a Transfer from Air BNB bank. This is not Income. This is Settlement of Funds. That's why Checking reconciles just fine.

View solution in original post

11 Comments
qbteachmt
Level 15

Quickbooks for Airbnb - How To setup?

This: "3) Something else entirely?"

 

All of the above, except Stop trying to use JE for anything here.

 

Air BNB is your Vendor, because they Charge you. If you are not tracking by actual customer name, then Air BNB is your Customer name, because they are how/who you Sold to.

 

Class is fine for tracking two properties.

 

The Chart of accounts is the income and expense accounts, but not Micro-managed Details. Use Items. Example:

 

Janitorial vs landscape are Service Items you incur, for each property (Class) and the Service Items are linked to the Same Expense account = professional services or contract labor.

 

Air BNB is also a Bank, because they act as your financial institution and hold your funds In and manage funds Out.

 

The Sales Receipt (not Invoices) is deposited to the Air BNB bank. The expense you incur is Write Check (not JE) on that bank and they are Vendor Name = Payee for Fees they charged you.

 

 

Real Settlement to Checking is a Transfer from Air BNB bank. This is not Income. This is Settlement of Funds. That's why Checking reconciles just fine.

View solution in original post

lindsaylmno
Level 1

Quickbooks for Airbnb - How To setup?

Would you be willing to walk through an example using details?

 

Example info:

Week rental on Airbnb $1000

Pay out to my company from Airbnb: $1000

My company pays the condo owners $750- expenses ($50 for sheets, $50 for towels) so $700

My company gets $250 from Airbnb

 

Thanks in Advance

qbteachmt
Level 15

Quickbooks for Airbnb - How To setup?

Having Condo Owners means you have Rent Liability, then.

 

1. Week rental on Airbnb $1000 = Rent Service item linked to Liability entered on the Sales Receipt. You can name them per Unit. If you also use Class tracking, use that here.

2. Pay out to my company from Airbnb: $1000 = Sales Receipt. See Step 1. Now you have the $1,000 for Banking.

3. My company pays the condo owners $750- expenses ($50 for sheets, $50 for towels) so $700 = You need to handle is using More details. The Spending or purchase data is entered as Billable to the Condo owner, as your customer name. You need to ask your Accountant if sheets and towels are you Expense (and it is Income when you make the owner pay you) or Advanced Costs (Other Current Asset). Or, you are describing Laundry Service, not Sheets and Towels being replaced. If you don't Pay for sheets and towels and are describing your own Laundry Service, you have no Purchase transaction and you simply add that charge to their invoice, along with any fee you are entitled to get from the owner.

 

Then, you Invoice the Owner and select these billable charges.

 

Your check entry to the Owner Name as Vendor is where you list the same Rent Liability item and put their Gross here. On the next line, you can show the holdback as AR for the Customer Name that owes you for the Linens. This is a Negative entry. Now this check to pay the owner is the Net. And now the open invoice has a Credit to be applied to it. You can also do this instead of Holdback, as paying the owner the Gross and they pay your their costs. Or, using a Clearing Bank as barter.

 

4. My company gets $250 from Airbnb = you already told us you get $1,000.

SuperhostCHI
Level 1

Quickbooks for Airbnb - How To setup?

If the rent paid to a landlord exceeds the income brought in by Airbnb, and I am living in said unit only sharing out a room to guests, can I write off or carry over the loss?

IamJasonWeber
Level 3

Quickbooks for Airbnb - How To setup?

I work for a company that automates the Airbnb Quickbooks integration, and we work with a lot of accountants that set up their client's books for Airbnb (See: https://www.bnbtally.com/airbnb/quickbooks/integration). Here's how a lot of accountants that work with us set things up for their clients who own their Airbnb properties or have a rental arbitrage business model...

 

CLASSES: Just like you we use Classes to separate between properties, which is important so that we can clearly produce reports (P&L) of each individual listing. Sometimes we use Locations to do this but either is fine. 

 

INCOME ACCOUNTS: In the Chart of Accounts, we set up three Income (Service/Fee Income) accounts to record Income:

- Airbnb - Income - Accommodation Fare

- Airbnb - Income - Cleaning Fee

- Airbnb - Income - Resolution Adjustment

 

The reason we separate income into these three accounts is because the success of the business is mostly based on the Accommodation Fare and, therefore, this is a number that we truly want to monitor and separate in our reports. It's also good to track how much is coming in for cleaning fees, which is nice to know when budgeting for cleaning costs. Resolution adjustments are for those odd times we need to collect from guests on Airbnb for damages and aren't much related to the performance of the business. 

 

REFUND ACCOUNTS: In the Chart of Accounts, we have three Income (Discounts/Refunds Given) accounts to record Refunds:

- Airbnb - Refund - Accommodation Fare

- Airbnb - Refund - Cleaning Fee

- Airbnb - Refund - Resolution Adjustment

 

In our reports, we prefer to separate refunds. This is quite valuable for reporting separately to tax authorities and is important since Airbnb doesn't include refunds in their 1099s - it's up to you to keep track of this (clients started saving a lot in taxes after catching this). 

 

COGS ACCOUNT: In the Chart of Accounts, we have a Costs of Goods Sold (Other) account for the host fee: Airbnb Direct Cost - Host Fee

 

We consider the host fee to be a direct cost of obtaining revenue from Airbnb, so therefore the COGS is an appropriate type of account here.

 

INVOICE CREATION: When we receive income from a reservation in Airbnb, we create an invoice in Quickbooks. Invoices are the most versatile in this matter. Within the invoice, we set the Guest as the customer (we store First Name, Last Name and Phone number). For all of the above Chart of Accounts, we have a Product/Service item associated with it and record in the invoice the Accommodation Fare, Cleaning Fee, any Resolution Adjustments, and Host Fees. We don't create a separate bill for the Host Fee as it's not necessary to track (Airbnb automatically deducts the host fee from the income).

 

PAYMENT CLEARING ACCOUNT: Finally, in the Chart of Accounts, we create a Bank(Checking) account for the payment clearing account: Airbnb Payment Clearing Account

 

We use the Airbnb Payment Clearing Account to pay our invoices when Airbnb posts the payment. And then when the money is received in our bank account, we reconcile it back to the Airbnb Payment Clearing Account. At the end of the day the Airbnb Payment Clearing Account should balance to zero.

 

OVERALL: We’ve found this to be the most precise way to reconcile Airbnb revenue. It produces extremely precise reports that help us to track the success of the business to a TEE! It’s also very precise for tax reporting. We’ve developed software that will automate the entire process outlined above, which you may find useful: https://www.bnbtally.com/airbnb/quickbooks/integration 

 

I’ve also written an article that further explains the Quickbooks setup and provides the Chart of Accounts and Product codes you can import into Quickbooks. You may also find this helpful: https://support.bnbtally.com/en/articles/3571867-preparing-quickbooks-for-an-airbnb-rental-arbitrage... 

 

Sarasota_Duffer
Level 1

Quickbooks for Airbnb - How To setup?

Where does the income get mapped to the COGs Host Fee? Quickbooks Desktop Pro doesn't allow COGs in the invoice.

Ghie
Level 1

Quickbooks for Airbnb - How To setup?

Hi Jason,

can I ask you more detailed question?

got this csv file with the ff amts:

amount $129.98

payout $129.98

host fee $4.02

cleaning fee $45

 

how much is the income here?

how much is the expenses?

how much does the guest really pay here?

 

really appreciate your help.

lakegenevarentals
Level 1

Quickbooks for Airbnb - How To setup?

Your answer was useful. Thanks. One question though...How would you date the sales receipt, assuming we're working in cash and not accrual? For example..Airbnb sends the payout 24 hours after the guests check in. Would the date on the sales receipt be the date of this payout, or the day it makes it to the bank (usually 1-2 business days after payout is sent)?

 

Thanks in advance.

Joesem M
QuickBooks Team

Quickbooks for Airbnb - How To setup?

Hello there, @lakegenevarentals.

 

Since you use the Cash basis accounting, you'll have to date the sales receipt once your bank received the money or the day it makes it your bank (usually 1-2 business days after payout is sent). It's because sales receipts aren't recorded in accounts payable cause the payment is immediate and not a bill owed to the company.

 

Here's how to create a sales receipt:

 

  1. On the QuickBooks Home screen or the Customers menu, go to Create Sales Receipts/Enter Sales Receipts.
  2. From the Customer: Job drop-down, select a customer or job.
  3. Fill in the necessary details.
  4. Select Save and SendSave and New, or Save and Close.

See this article for detailed steps: Create and send a sales receipt.

 

To know more about cash and accrual accounting in QuickBooks, please click this article: Differentiate Cash and Accrual basis.

 

If you need references about financial reports in the future, please feel free to access our site: Help articles for QuickBooks Desktop.

 

Please comment below if you need further assistance. I’ll be around to help. Take care.

matthewbloch
Level 1

Quickbooks for Airbnb - How To setup?

If we're dealing with the Airbnb CSV, in that example, your income is $134 (payout + host fee). The $45 cleaning fee is included in that total.

 

When accounting for the income, don't forget Airbnb have taken the host fee from the host's full income, then given the host the difference. They only ever quote net figures, but you need to know where to find the gross.

 

(this is critical to make sure you don't under-declare your income for tax!)

jacilane
Level 1

Quickbooks for Airbnb - How To setup?

 
 
 
 
 
   When you add the host fee to the invoice- it adds an amount that won't actually be paid to you via Airbnb since they keep that...and when you pay your invoice out of the Airbnb COGS account you will have only a partial payment with some remaining- (the host fee they kept)
 
I was not sure when you said "We don't create a separate bill for the Host Fee as it's not necessary to track (Airbnb automatically deducts the host fee from the income)." Do we just leave that field out on the invoice??
 
 
 

New airbnb host, trying to get nitty gritty with quickbooks to track!! Thank you!
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us