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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

14 Comments 14
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.

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?

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.

JoesemM
Moderator

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!
Sleepless
Level 1

Quickbooks for Airbnb - How To setup?

I am not creating invoices or bills but doing direct entry. I would like to add the total host fee for the year as one transaction to my gross and then expense it from there. I'm unsure on which account to go against when I add it to the gross?

Suzanne102
Level 1

Quickbooks for Airbnb - How To setup?

Airbnb is a vendor and a Customer. I use classes for the various properties. 

I write a credit note to Airbnb for the Comm and Fees. I make it billable. 

When I write the invoice from the Rental it is the Income from rental minus the chargeable expenses, which is a credit. The amount that Airbnb pays me then reconciles in my bank account with the amount of the invoice. The commission is wrong, as it comes to 0 but I post a correction. 

Windwave11
Level 1

Quickbooks for Airbnb - How To setup?

Hello 

 

If you have 10 properties, do you still add the properties as class? Or is there something more efficient 

Windwave11
Level 1

Quickbooks for Airbnb - How To setup?

Hello and what if you have 10 properties? Do you still list properties as classes? 

We rent from a building and have multiple units. 

 

Also, opinions on bnbtally?

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