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SupaMonkey
December 14, 2018
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Quickbooks for Airbnb - How To setup?

  • December 14, 2018
  • 4 replies
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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...

Best answer by qbteachmt

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.

4 replies

qbteachmt
qbteachmtAnswer
December 14, 2018

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.

    L
    lindsaylmno
    January 30, 2019

    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
    qbteachmt
    January 31, 2019

    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.

    S
    Sarasota_Duffer
    July 19, 2020
    This post has been deleted.

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

    G
    Ghie12
    September 15, 2020
    This post has been deleted.

    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.

    matthewbloch
    matthewbloch
    September 30, 2020

    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!)

      J
      jacilane
      October 23, 2020
      This post has been deleted.
      IamJasonWeber
       
       
       
       
       
         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!
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