Running a short-term rental is just like any other business. This is particularly true when it comes to finances. An important element of keeping track of your property’s financial health is the chart of accounts for Airbnb. Never heard of a chart of accounts? No problem! We’ll walk you through what exactly a chart of accounts for Airbnb is, why it matters, and how to set it up. By the end of this post, you’ll have a clear picture on how to look at your short-term rental’s performance.

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What is a chart of accounts?

In short, a chart of accounts (COA) is an all-encompassing list that organizes all of your financial transactions into distinct categories. These categories help your track your proptery’s income and expenses in a way that makes it easier to monitor the financial health of your business. For example, the chart of accounts will split your income and expenses into categories like assets, liabilities, income, expenses, and more. This is particularly helpful come tax season.

Why is a chart of accounts important?

It’s important for a host to have a chart of accounts. Whether you manage one rental or a whole portfolio, a chart of accounts will help you have a clear picture of the financial health of your biz.

1. It keeps everything in one place

There are a lot of moving parts to running a short-term rental. Without a COA, it’s easy for things to get lost in the cracks. A COA will serve as an easy place to log and monitor every financial transaction you have, and make it easy for you to “pull up” transactions when needed (i.e., tax season).

2. Tax season runs more easily

Nobody likes tax season. If you do, well, good for you! For the rest of us, a COA makes handling the paperwork of tax season easier. When you can see all of your income and deductible expenses in one place, its a less frustrating experience.

3. Helps you understand your performance better

A COA is a quick and easy way for you to see how your property is doing. If you have multiple rentals, it’s a good option for comparing what is working and not working between properties. Understanding these insights can help you make more meaningful decisions.

4. Allows you to more easily grow your business

If you’re looking to expand your business, having a strong COA is like setting the foundation for that scalability. It’s particularly helpful if you pair it with Host Tools to help you automate messaging, your pricing, booking calendar, and more to minimize human error and increase your free time.

How to set up a chart of accounts

Creating a COA might sound overwhelming, but once you break it down into steps, it’s surprisingly simple. Follow the six steps below to get started.

1. Identify your income sources

Start by categorizing the money you earn. Common income categories for Airbnb hosts include:

• Rental Income (earnings from guests)
• Cleaning Fees
• Cancellations or Late Fees
• Pet Fees (if applicable)
• Service Fees (revenue from additional services such as airport picks or private tours)

Tip: Keep these income sources separate so you can see the breakdown clearly when reviewing your profits.

2. List your expenses

Next, create categories for your expenses. These will likely include:

• Repairs and Maintenance (e.g., plumbing, electrical work)
• Cleaning Services
• Property Management Software Subscriptions (like Host Tools)
• Utilities (water, electricity, internet)
• Marketing (social media ads, professional photos)
• Insurance and Taxes (property tax, occupancy tax)
• Property management fees or host fees
• Any guest service fees

Pro Tip: Separate fixed and variable expenses. Fixed expenses (e.g., mortgage payments) remain consistent, whereas variable ones (e.g., repairs) might fluctuate.

3. Organize your assets and liabilities

• Assets might include the value of the property or cash reserves.
• Liabilities include things like mortgage balances, loans, or security deposits owed to guests.

This organization helps you see what your business owns versus what it owes.

4. Use accounting software or tools

Manually handling your COA is possible, but it can get tedious as your business grows. Airbnb hosts can save time by automating financial tracking with accounting software like QuickBooks. Tools like these sync transactions directly to your COA, reducing errors and saving hours of manual entry.

5. Maintain your chart of accounts regularly

Creating a COA is just the first step. Maintaining it is just as important. Dedicate time each week to review your entries, reconcile accounts, and ensure everything is up-to-date.

6. Consult a professional

Tax laws and accounting principles can get complicated. Working with a CPA or financial advisor familiar with vacation rentals ensures your COA follows best practices and adheres to local regulations. Plus, they can help you maximize deductions you might not have thought of!

Tips

Here are a few tips that we’ve found useful when putting together our chart of accounts for Airbnbs:

• Be consistent across all of your paperwork. Use the same category titles everywhere and across multiple properties to avoid confusing yourself.
• Keep your receipts and invoices, and input them as soon as possible. This helps prevent transactions from getting misplaced.
• Automate as much of your business as possible. Using Host Tools will free up to 80% of your time on the day-to-day tasks of hosting.
• Pay attention to how your properties are doing every month. This allows you to notice trends and catch things from the beginning.

Final thoughts

A chart of accounts doesn’t have to be scary. Rather, it makes everything easier. When you put a plan in place to have your chart of accounts, it lets you track expenses, prepare your taxes more easily, and have a better idea of how your properties are performing. It’s a necessary part of the financial side of running a business, and it’s needed whether you have one property or 100!. Pair a COA with the automation benefits of Host Tools, and you’ll be ahead of the curve!

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!