How To Use Quickbooks For Airbnb

Introduction.

Managing an Airbnb property can feel like a juggling act—keeping track of bookings, expenses, and income can easily become overwhelming, especially when you’re managing multiple properties.

QuickBooks is one tool that can help you simplify your financial management, track your property’s profitability, and keep your records for tax season.

In this guide, I’ll walk through exactly how to use QuickBooks for your Airbnb business, from basic setup to advanced features.

This way, you can spend less time on accounting and more time enhancing your guests’ experience.

Why Use QuickBooks for Airbnb?

Airbnb income isn’t as straightforward as a regular paycheck; it’s a business with various revenue and expense streams.

When managed well, QuickBooks can help you gain insights into where your money is going and how your Airbnb is performing. Here’s how QuickBooks benefits Airbnb hosts:

1. Automated Expense Tracking: Categorize and track every cost involved in running your Airbnb—from cleaning fees to utilities and repairs. QuickBooks makes it simple to see where your money is going and how much you’re spending on each property.
2. Income Organization: QuickBooks allows you to separate income by property, making it easier to identify which listings are the most profitable.
3. Financial Reporting for Tax Purposes: QuickBooks generates helpful reports like Profit and Loss statements, Balance Sheets, and Cash Flow reports—essential for tax season.
4. Better Decision-Making: By giving you a clear picture of your income and expenses, QuickBooks can help you make data-driven decisions about pricing, maintenance, and investment opportunities.

How Do I Use Quickbooks For Airbnb?

1. Setting Up QuickBooks for Airbnb

• Choose the Right QuickBooks Plan: QuickBooks offers several plans, but for Airbnb hosts, QuickBooks Self-Employed or QuickBooks Online is usually the best fit. QuickBooks Online is more comprehensive if you have multiple properties, while Self-Employed might be sufficient if you manage only one listing.
• Create a Company Profile: After signing up, you’ll create a new “Company” for your Airbnb business. Even though Airbnb might not feel like a traditional business, treating it as one from a financial perspective is crucial.
• Connect Your Bank Accounts and Credit Cards: Linking your bank accounts to QuickBooks allows it to automatically import transactions. This step will save you hours each month in manual entry and ensure all income and expenses are recorded accurately.

2. Set Up Income and Expense Categories

• Income Categories: Set up an “Airbnb Income” category to track payments from Airbnb. You can create subcategories if you want to track different income streams like booking fees, extra services, or cleaning fees.
• Expense Categories: Set up categories for expenses such as utilities, maintenance, cleaning, property management fees, and advertising costs. QuickBooks has default categories, but customizing them to match your Airbnb business can provide a more accurate picture of your financials.

3. Record Each Expense and Income Source

Each time you incur an expense or receive a payout, QuickBooks will automatically categorize it if your bank account is linked. However, it’s a good idea to review these transactions to ensure they’re correctly labeled, especially if you have unique expenses like seasonal repairs or marketing.

4. Automate with Rules

QuickBooks allows you to set up automation rules, which can be a lifesaver. For instance, you can create rules that automatically categorize all Uber or Lyft charges under “Travel,” or split grocery expenses into “Food & Beverage” and “Supplies” categories. This automation reduces errors and speeds up your bookkeeping process.

5. Run Financial Reports

Running regular reports helps you keep tabs on your property’s performance. QuickBooks can generate essential reports for Airbnb hosts:

• Profit and Loss (P&L) Statements: This report shows your Airbnb’s income versus expenses, giving you a clear picture of profitability.
• Cash Flow Statements: Track cash going in and out to make sure you’re not overspending.
• Tax Summary Reports: QuickBooks can calculate your estimated quarterly taxes if you’re using the Self-Employed plan, which is useful for managing tax obligations.

Pros and Cons of Using QuickBooks for Airbnb

Pros

• Time-Saving Automation: Linking your bank accounts and setting up automation rules saves hours each month.
• Financial Clarity: QuickBooks provides detailed reports that allow you to see how profitable your Airbnb truly is.
• Tax Compliance: QuickBooks simplifies tax season, helping you track deductible expenses and organize financial data needed for tax returns.
• Customizable for Multiple Properties: If you’re managing multiple listings, you can track each property individually, making it easier to see which ones are performing the best.

Cons

• Learning Curve: While user-friendly, QuickBooks can be complex, especially if you’re new to bookkeeping.
• Cost: QuickBooks plans are subscription-based, with prices starting around $15/month for Self-Employed, which can add up over time.

Frequently Asked Questions

Q: Do I need an accountant if I use QuickBooks for my Airbnb?

A: QuickBooks simplifies tracking expenses and income, but having an accountant review your finances can be helpful, especially if you have multiple properties or complex deductions. Many hosts use QuickBooks for day-to-day tracking and consult an accountant quarterly or annually.

Q: How does QuickBooks handle taxes for Airbnb income?

A: QuickBooks Self-Employed can estimate quarterly taxes based on your Airbnb income, which can help you avoid underpayment penalties. During tax season, you can also generate reports to give to your accountant or import directly into tax software like TurboTax.

Q: Can I track multiple properties on QuickBooks?

A: Yes, QuickBooks allows you to set up “classes” for each property, so you can see the performance of each listing individually. This is especially helpful if you want to track profitability or compare expenses across multiple properties.

Q: What’s the difference between QuickBooks Self-Employed and QuickBooks Online?

A: QuickBooks Self-Employed is tailored for freelancers and very small business owners, with features focused on simple expense tracking and tax estimates. QuickBooks Online has more advanced accounting features, making it better suited if you manage multiple Airbnb listings or want in-depth reporting.

Q: How secure is QuickBooks for my Airbnb financial data?

A: QuickBooks uses bank-level encryption and offers multi-factor authentication to keep your financial data safe. Intuit, QuickBooks’ parent company, has a strong reputation for data security, so your information is well-protected.

Conclusion

QuickBooks can be a game-changer for Airbnb hosts looking to streamline their financial tracking and maximize profitability.

From income and expense categorization to automated tracking and tax prep, QuickBooks is equipped with features that make managing your Airbnb business easier and more organized.

Do you think using QuickBooks could help you make better financial decisions for your Airbnb?