01
The challenge
Platforms pay out net of host fees and sometimes taxes, one card mixed personal and business spending, and utilities for two dozen units arrived on separate accounts. For the property manager, guest funds and owner funds moved through a trust account that had to match reservations exactly.
02
Our approach
- Gross up the payouts. Revenue was recorded gross with host fees and platform-collected taxes broken out, so totals tie to Form 1099-K.
- Property-level tracking. Every unit became a class in QuickBooks, with rent, utilities, cleaning and repairs mapped to it.
- Mixed card cleanup. Personal charges were moved to owner draws, with a written rule for future months.
- Trust account reconciliation. Deposits in the manager's owner trust account were matched to Hostaway reservation reports, owner statements and the bank: a three-way reconciliation.
- Tax-ready classification. Activity was organized so the CPA could apply Schedule C or Schedule E treatment and the short-term rental participation rules.
03
Results delivered
- Profit and loss by property, used to drop or renegotiate underperforming leases.
- Platform revenue that ties to 1099-Ks and bank deposits.
- A trust account that reconciles to reservations every month.
- Ongoing monthly bookkeeping on a fixed schedule.
04
Frequently asked questions
Record the gross booking amount as revenue and the host service fee as an expense, so totals match the 1099-K and the platform reports.
It depends on the services provided and how the property is used. Hotel-like services usually point to Schedule C; a CPA should review each property.
It agrees the bank balance, the trust ledger and the owner or reservation balances to each other, so every dollar held for others is accounted for.
Related services
Key terms See the glossary →
