What Is Airbnb Bookkeeping and Accounting? (Complete Guide)
In the field of short-term rental, ‘bookkeeping’ and ‘accounting’ are two common terms.
Many hosts consider them the same since both are about money, numbers, income, and expenses. But the truth is, they are quite different, and you should know how.
Knowing the differences between bookkeeping and accounting makes it easy for you to handle your Airbnb finances. You can stay more organized, better handle tax season, and even make smarter decisions to grow your rental income.
So, what does each one really mean? Why do they even matter? Read on to learn!
Table of Contents
What Is Airbnb Bookkeeping?
Airbnb bookkeeping is all about tracking financial transactions related to your rental.
In other words, it is noting down every cent that comes in and goes out of your Airbnb business. For example, rental incomes, expenses, cleaning fees, service charges, etc.
Bookkeeping is like keeping a daily log of your business money. You can do so via a notebook, a spreadsheet, or software like QuickBooks or Excel.
The goal here is to keep things organized and up to date.
That said, here are some common money-related things you track in bookkeeping:
- Booking income
- Cleaning fee
- Airbnb service charges
- Electricity, water, Wi-Fi, and other bills
- Repairs and maintenance costs
- Expenses like supplies, furniture, cleaning, etc.
- And the list goes on.
Good bookkeeping helps you see how your business is doing. It helps you know if you’re making a profit or spending too much. It also makes tax time much easier.
What Is Airbnb Accounting?
Airbnb accounting is the next step after bookkeeping.
While bookkeeping records daily money in and out, accounting is about analysing that information and understanding what exactly that means.
It helps you see the bigger picture of your Airbnb business.
Accounting uses all the records from bookkeeping and changes them into clear reports. These reports show your total earnings, total expenses, your profit, the taxes you owe, and more.
Most importantly, accounting tells you whether you need to pay taxes and how much. And it also ensures you follow all tax rules and do not miss any deductions.
Simply put, Airbnb accounting is about understanding the financial health of your business.
It uses your bookkeeping records to give you insight, help you plan, and make smart choices.
What Are Key Tasks In Airbnb Bookkeeping and Accounting?
These are the tasks involved in bookkeeping and accounting for Airbnb:
Airbnb Bookkeeping Tasks
Core focus of the tasks: Recording and tracking
Here is the list of bookkeeping tasks that help keep financial records organized:
- Write down all Airbnb income (nightly rate, cleaning fee, pet fee, etc.)
- Note Airbnb service fees as expenses
- Track refunds, cancellations, and adjustments
- Record cleaning, repairs, and supply costs
- Track utilities, internet, insurance, taxes, mortgage interest
- Save receipts and invoices
- Record occupancy taxes and local fees
- Keep a log of any cash payments
- Use a separate bank account for Airbnb money
- Match Airbnb earnings reports with bank deposits
- Update records regularly (weekly or monthly)
- Back up financial data
Airbnb Accounting Tasks
Core focus of the tasks: Analyzing and decision-making
After using the data from bookkeeping, this is what is done in the accounting part:
- Prepare financial reports (income, balance sheet, cash flow)
- Check how much profit you really made
- Plan cash flow for busy and slow seasons
- Review expenses to cut unnecessary costs
- Work out taxable income after deductions
- Organize expenses for tax time
- Set money aside for taxes
- Make sure you follow tax rules
- Create reports for banks, investors, or partners
- Decide on upgrades or new investments
- Adjust pricing based on performance and market trends
- Get help from a professional if needed
If we go through the above-mentioned tasks carefully, it clarifies one thing:
Bookkeeping is the recording stage (not down all the numbers), while accounting is the interpretation stage (use numbers to decide something).
Which Does Your Airbnb Business Need?
An Airbnb short-term rental business needs both bookkeeping and accounting, but in different ways and at different stages of your business.
Whether your STR venture is small or very new, you need to track every income and expense from day one—a clear record of all money going in and out.
So, the first step is to start with bookkeeping.
Bookkeeping is like a foundation for your accounting.
Even if you hire an accountant later, they’ll need accurate records to work with.
If you only rent out once in a while, a simple spreadsheet can be enough. But if you host regularly or manage multiple properties, you should benefit from using bookkeeping software or hiring a part-time bookkeeper.
As your business grows, it is time to add the accounting part as well. It can help you:
- Understand your profit and cash flow
- Handle your taxes correctly
- Find ways to save money
- Plan for growth or new investments
- Stay compliant with local tax laws
Whenever you’re going to hire someone for this purpose, team up with one who can handle Airbnb bookkeeping as well as the accounting part themselves.
The best option is to work with full-time co-hosting service providers.
For example, you can utilize the Airbnb Bookkeeping and Accounting service by DOSbnb—a co-hosting platform. They provide a full-service solution to track everything on your Airbnb.
However, you should also keep in mind that such a firm is best for you if you run multiple properties, earn a lot, and want to keep running everything smoothly.
In case you want to save money, you can hire someone from different freelancer platforms, such as Fiverr, Upwork, Freelancer, etc.
In other words, you don’t need to hire a full-time accountant right away. Many hosts work with one just once or twice a year—especially during tax season.
But if your income increases, or if you’re running Airbnb like a full business, an accountant is a smart move.
How To Calculate Your Airbnb Income?
The right way to figure out Airbnb income is a bit technical but easy.
Airbnb pays you in what they call “payouts.” These payouts usually include things like nightly rates, cleaning fees, and any extra charges from guests.
But here is the thing: when it comes to taxes, you can’t just look at what lands in your bank account. You have to report what is called your gross earnings, which is the total amount before Airbnb takes out its service fees or refunds.
So, let’s say your payouts for the year add up to $6,200, and Airbnb kept $400 in fees.
On your taxes, your income is not $6,200—it is $6,600.
You report the $6,600, and then you use the $400 as an expense to lower that amount.
So, Airbnb income calculation starts with gross earnings, not just payouts.
First of all, add up all payments before Airbnb’s fees. Once you get a number, subtract allowable expenses like cleaning, repairs, or service fees from it.
The result? You get your true taxable income and pay taxes on actual profit.
Which Airbnb Expenses Can Be Detected From Taxes?
Airbnb hosts can subtract many types of expenses from the taxable income.
The rule of thumb is simple: if the expense is necessary to keep your rental running, there is a good amount of chance you can write it off.
For example, these are some common deductible expenses:
- Utilities
- Property taxes
- Insurance
- Mortgage interest
- Cleaning costs
- Repairs
- Advertising
- Supplies
- Travel costs
- And the list goes on
For your information, these expenses usually fall into two categories: direct and indirect.
Direct expenses are the easy ones because they only apply to your Airbnb.
Paying a cleaner after each stay, buying fresh linens, fixing something a guest damaged, or Airbnb’s own fees all count as direct, and you can deduct them completely.
Indirect expenses are a bit more complicated since they mix personal and rental use.
Here is how that works.
If you rent out a whole property and never live in it, you can deduct all the costs for the days it was rented.
For example, if your place was rented for 180 days, that is about 49% of the year. So, you can write off 49% of your yearly expenses.
But if you are renting only part of your home, you have to factor in both the space and the time.
Say you rent out 200 square feet of a 1,600 square foot home (about 12.5% of the space) for 80 days (about 22% of the year). You’d multiply 12.5% by 22% and then apply that number to your total expenses to get tax-deductible expenses.
At the end of the day, the goal is simple: show the IRS the full income you made, then back it down with the right expenses so you’re only taxed on the real profit.
That way, you keep more of what you earn instead of paying more than you should.
How To File Taxes for Airbnb?
If you’re an Airbnb host who doesn’t know how to file taxes, here are the steps to do so:
1. Figure Out Your Tax Status
The first thing to sort out is whether Airbnb is already taking any taxes out of your payouts.
If you send them a W-9 form, then they don’t withhold anything, which means you’ll need to take care of it yourself when filing.
If you didn’t give them that form, they might already be holding back about a quarter of your income (24–28%) and sending it straight to the IRS.
You can see this in your Earnings Summary inside your Airbnb account.
Don’t skip this step because it sets the tone for everything else you’ll be doing.
2. Gather All the Forms You Need
Depending on how much you made, Airbnb might send you different tax forms.
You’ll likely get a 1099-K if you earn over $20,000 with more than 200 bookings/year.
Another type of form is 1099-NEC. Those hosts who earn more than $600 from non-rental services (say you offer tours or cleaning) get this form.
If you qualify for any of these forms, you will receive it by 31st January either via mail or email.
In case you don’t get one, it doesn’t mean you don’t have to file for taxes. The IRS still expects you to report every dollar you earn.
Make sure you file your taxes in all applicable scenarios.
3. Add Up All of Your Earnings
Now it is time to work out what your real income was.
The mistake many hosts make is looking only at the payouts that hit their bank accounts.
That is not what the IRS looks at.
For taxes, you need to report your gross income—that means the full amount before Airbnb takes out their fees or refunds guests. This number will include the nightly rate you charged, cleaning fees, extra guest fees, and any reimbursements.
Yes, it will look higher than the money you actually got, but don’t panic.
You’ll balance it out later with your expenses.
4. Track Every Expense You Can Deduct
Here is where you can save a lot of money.
You can count every single dollar if you spend it on hosting.
That includes every expense: cleaning, laundry, supplies, lightbulbs, new towels, repairs, furniture, insurance, mortgage interest, property taxes, and so on.
Even your internet, electricity, and water bills matter here. After all, guests use them, so they are deductible for the time they are staying.
Make sure you know all the expenses you can deduct from taxable income.
5. Report Your Income the Right Way
Most hosts will use Schedule E (Supplemental Income and Loss) when filing.
This form is meant for rental income, and you’ll list your gross income first, then subtract the expenses, and the result is your taxable profit.
Now, if you do more than just rent—say you cook meals for guests, run daily cleaning, or offer tours—the IRS can also consider that a business.
In that case, you’ll need to use Schedule C instead.
Whatever you choose, make sure your numbers match what Airbnb reported to the IRS. If they don’t, your return could get flagged, and no one wants that.
6. Look Into Local Taxes Too
Federal and state taxes aren’t the only things to worry about.
Many cities and counties also charge occupancy taxes or lodging taxes for short-term rentals.
In some areas, Airbnb automatically collects this and sends it directly to the local authority, but that’s not true everywhere. Sometimes the responsibility falls on you to collect and send it in.
If you’re unsure, check your hosting dashboard on Airbnb under “Local Taxes” or call your city’s tax office. Make sure you know how much you owe the authorities.
Skipping this can lead to fines, so it is better to be safe.
Pro Tip! Have a Professional Accountant on Your Side
When your Airbnb starts picking up, it becomes tricky to manage your money side.
At the start, you may work out with a simple spreadsheet. But with more bookings or multiple properties, the numbers can quickly pile up.
This is where having an accountant really helps.
They can sort out what counts as a rental expense, what you can deduct, and make sure your tax forms match what Airbnb reports. They also ensure you don’t end up paying extra.
A good accountant also gives advice on how to save on taxes, plan upgrades, handle slow seasons, and much more.
You look after your guests, and your accountant keeps your money in good shape.
Do You Really Need to Pay Tax?
Yes, in most cases you do.
If you rent out your home or apartment for more than 14 days in a year, the money you earn counts as taxable income.
This doesn’t just mean the nightly rent you charge—it also includes extra amounts guests pay, such as cleaning fees or other services tied to their stay.
On the other hand, if you only rent your place for 14 days or less in a year, you don’t have to report that income at all.
This special rule is often referred to as the “Masters Exemption,” and the IRS permits it as a break for the short-term use of a property.
So, whether you owe taxes depends on how often you rent.
How Airbnb Guests Pay Their Taxes?
When guests book a stay in the United States, Airbnb usually adds local taxes to the total cost right at the time of booking.
These charges are collected automatically by Airbnb and then sent to the right tax authority, so guests don’t have to handle them separately.
In some cases, if an area requires a custom tax or an extra type of tax, Airbnb can also collect that on top of the booking price. Those amounts are then paid out to the host, who is responsible for passing them on if required.
This makes it simple for guests as their taxes are included in the booking payment.
Conclusion
Running an Airbnb is not just about hosting—it is also about handling money the right way.
Bookkeeping and accounting may sound similar, but they serve very different purposes.
Bookkeeping keeps track of every dollar in and out, while accounting takes that data and turns it into useful insights. Together, they help you stay on top of your income, expenses, and taxes.
If you’re just starting out, simple bookkeeping may be enough, but as your rental grows, accounting becomes essential.
In the end, both work hand in hand to keep your Airbnb business healthy and profitable.
Frequently Asked Questions
What Is the Meaning of Accounting and Bookkeeping?
Bookkeeping means writing down and recording a business’s finances. It is about keeping daily records of income and expenses.
Accounting is the next step—it summarizes, analyzes, and reports on those numbers. It uses them to understand profit, taxes, and overall business health.
In short, bookkeeping records numbers, and accounting analyzes and plans them out.
Is Bookkeeping Hard to Learn?
Not really.
Bookkeeping is more about being careful and organized than being highly educated.
If you are an Airbnb user who can handle basic math and know how to keep receipts or note transactions, you can do bookkeeping.
You can start with simple tools like Excel or Google Sheets. With practice, it becomes a routine task instead of something difficult.
What Are the Two Types of Bookkeeping?
There are two key bookkeeping systems:
Single-entry bookkeeping: This means recording one side of a transaction. For example, if you pay $50 for cleaning, you just note that expense.
Double-entry bookkeeping: This records both sides of a transaction, one as money leaving and once as money being used. For example, your cash account is decreased by $50, while your expense account is increased by $50.
What Bookkeeping Software Does Airbnb Use?
Airbnb itself does not give you bookkeeping software. It only gives you earning reports inside your host account. Most Airbnb hosts use their own tools, like
- QuickBooks,
- Xero,
- Wave, or
- Even Excel spreadsheets.
The choice depends on the scale of your business and your comfort level.
How to Categorize Airbnb Income in QuickBooks Online?
In QuickBooks Online, Airbnb income should be marked under “Rental Income.”
You can create categories like nightly rates, cleaning fees, and extra charges. Airbnb service fees go under “Commissions and Fees” or “Expenses.”
This way, your reports show the full income first with the costs, so you only pay tax on the profit.
How to Keep Track of Airbnb Income and Expenses?
Separate your Airbnb bank account from your personal money account.
Keep every receipt, invoice, or bill related to the rental.
Write down each booking’s income, Airbnb fees, cleaning costs, repairs, and utility bills. You can do this in a notebook, a spreadsheet, or software like QuickBooks or Excel.
The key is to update regularly, so you’re not rushing at tax time.
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