Managing your Airbnb properties isn’t just about hosting—it’s about keeping track of your finances, expenses, and taxes to make sure your business thrives. The right accounting software can save you time, organize your income, and simplify tax preparation. As an Airbnb host myself, I’ve had to figure out the best solutions to manage bookings, expenses, and income efficiently.
Here’s my take on the best accounting software for Airbnb hosts, starting with FreshBooks, which I’ve found to be the most user-friendly and comprehensive option.
Top Accounting Software for Airbnb Hosts
1. FreshBooks
FreshBooks is hands-down one of the best accounting software for Airbnb hosts who want a combination of ease of use, invoicing, and expense management. Whether you’re renting out a single property or multiple listings, FreshBooks is built to handle the needs of small business owners like you.
Features:
- Automatic income tracking from multiple platforms (Airbnb, Vrbo, etc.)
- Expense categorization (cleaning, maintenance, utilities)
- Customizable invoicing for direct bookings outside of Airbnb
- Automatic receipt scanning via the mobile app
- Profit and loss reports to track your performance
Why it works: FreshBooks is ideal for Airbnb hosts who need to stay organized without being financial experts. I love how easy it is to connect your bank accounts and automatically categorize your expenses. The invoicing feature is perfect if you manage direct bookings outside Airbnb, and it’s very helpful in keeping your taxes organized when tax season hits. The simple interface and automatic reports give you a snapshot of your Airbnb business at any time.
2. QuickBooks Self-Employed
If you’re an Airbnb host who’s focused on tracking income and managing self-employment taxes, QuickBooks Self-Employed is a powerful option. It’s built for freelancers and small business owners, making it ideal for hosts who need help managing their income streams and tax obligations.
Features:
- Automatically tracks income and expenses from Airbnb deposits
- Categorizes expenses to maximize tax deductions
- Quarterly tax estimate calculation and reminders
- Mileage tracking for business-related travel (like property visits)
- Syncs with your bank and credit card accounts for easy reconciliation
Why it works: QuickBooks Self-Employed simplifies the tax prep process for Airbnb hosts by automatically calculating quarterly tax payments. It tracks all your Airbnb payouts and expenses, so when tax season comes, you won’t have to scramble to figure out how much you owe. The mileage tracking feature is a bonus if you travel between multiple properties, and the app’s automation saves you a lot of time.
3. Wave
For Airbnb hosts who want an accounting solution that’s powerful and free, Wave is an excellent choice. It’s particularly useful if you’re managing one or two properties and don’t want to pay monthly fees for software.
Features:
- Free accounting software with automatic income tracking
- Unlimited invoicing for guests who book outside Airbnb
- Expense tracking and receipt scanning
- Customizable financial reports (profit/loss, cash flow)
Why it works: Wave is a great option if you’re just starting out or don’t want to invest in expensive accounting software. While it’s free, you still get plenty of features to track Airbnb income and expenses. One of its strengths is the ability to handle unlimited invoices, so if you get bookings directly or through multiple platforms, Wave helps you stay on top of it all.
4. Xero
If you’re managing multiple Airbnb listings or are growing your business to include other rental platforms, Xero provides robust accounting tools to handle more complex financial needs.
Features:
- Automatically imports Airbnb payouts and expenses
- Supports multiple currencies if you host internationally
- Customizable reporting (balance sheets, profit/loss)
- Integrates with third-party apps like Stripe for direct bookings
Why it works: Xero is designed for hosts who need a more comprehensive view of their finances. It’s excellent for scaling your Airbnb business and offers detailed reports that give you a better understanding of your cash flow, profit margins, and expenses. The app integrations and multi-currency support are also great if you’re managing properties globally or across different platforms.
5. Hostfully
For those who want a property management system (PMS) with built-in accounting tools, Hostfully offers Airbnb-specific management features alongside accounting capabilities. It’s great for streamlining all aspects of your short-term rental business.
Features:
- Integration with Airbnb, Vrbo, and other platforms
- Payment processing and accounting tools for direct bookings
- Expense tracking and categorization
- Financial reporting to track property performance
Why it works: Hostfully combines both property management and accounting into one platform. This is ideal if you’re an Airbnb host who manages multiple listings and wants everything in one place. You can sync your bookings, payments, and expenses while keeping a close eye on your financials, all from a single dashboard.
Features to Look for in Accounting Software for Airbnb Hosts
Before choosing the right accounting software for your Airbnb business, make sure it has the following features to keep your operations running smoothly:
- Income Tracking: Your software should automatically import Airbnb payouts and track income from other sources (like direct bookings).
- Expense Categorization: Tracking expenses—cleaning, repairs, utilities, etc.—should be easy, and the software should help you categorize them for tax deductions.
- Tax Prep Tools: Airbnb hosts are self-employed, meaning you’ll need to file taxes accordingly. Look for tools that help with quarterly tax estimates or provide easy tax prep integration.
- Invoicing: If you’re taking bookings outside Airbnb (directly from guests or through other platforms), invoicing tools will help you manage and track these payments.
- Mobile Access: Many hosts manage their rentals on the go, so having mobile access for tracking income and expenses is crucial.
- Integration: If you use multiple platforms for your listings, choose software that integrates with Airbnb, Vrbo, or other short-term rental platforms to sync income and expenses seamlessly.
Common Financial Mistakes Airbnb Hosts Should Avoid
Managing Airbnb properties can lead to financial pitfalls if you’re not careful. Here’s how to avoid some of the common mistakes I’ve seen:
- Not Tracking All Expenses: Airbnb hosts have tons of deductible expenses, from cleaning fees to utilities. Failing to track them properly could mean losing out on deductions at tax time.
- Not Setting Aside Money for Taxes: Self-employment taxes can sneak up on you. Make sure to set aside 25-30% of your Airbnb income to cover federal and state taxes.
- Mixing Personal and Business Finances: Always keep a separate bank account for your Airbnb income and expenses. This simplifies bookkeeping and ensures you’re ready for tax season.
- Neglecting Direct Booking Income: If you take bookings outside of Airbnb, make sure those transactions are tracked and invoiced properly.
- Not Automating Where Possible: Automate as much as possible—from expense tracking to income categorization—so you can focus on growing your Airbnb business instead of bookkeeping.
Final Thoughts
Choosing the best accounting software for your Airbnb business depends on your needs and portfolio size. FreshBooks is my top recommendation for its ease of use and powerful invoicing tools, especially for hosts managing a few properties. If you’re scaling or want a free option, QuickBooks Self-Employed and Wave are excellent choices.
With the right software in place, you’ll spend less time stressing over finances and more time growing your Airbnb empire!