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Top 5 Airbnb tax software for landlords
Running an Airbnb is a great way to make some passive income, but managing your books and filing taxes gives many short-term rental business owners a headache. Between tracking rental income and calculating deductible expenses, it's natural to get overwhelmed.
Airbnb tax software can help with that and make your accounting process more manageable. While there are not that many platforms that focus on accounting and taxes specifically for Airbnb, there are general ones like QuickBooks that can still work really well for landlords.
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What are the benefits of using tax software for your Airbnb listing?
There are many benefits to using Airbnb tax reporting and accounting software. Here are some of them:
- Better income and expenses tracking: Automatically sync your booking data and expenses so you don't need to manually enter every transaction
- Easier tax filing: Many kinds of software generate tax-ready reports and forms that integrate directly with popular tax preparation software
- Tax savings: Identify and categorize all possible deductions you might have missed and minimize your tax burden
- Smarter decisions: Your platform will likely give you detailed profit and loss reports that show how your property is performing, so you can optimize pricing and plan for the future
If you've been keeping a manual spreadsheet, switching over to a dedicated Airbnb tax software can save you a lot of time and energy.
Top 5 tax software for Airbnb rentals
While there aren't many accounting and tax software options specifically designed for Airbnb, you can easily use more general accounting platforms like QuickBooks for your short-term rental business.
Let's take a look at some of the best tax software for Airbnb hosts. These options are listed in no particular order. Ultimately, it depends on what works best for you and helps you keep your finances organized.
1. QuickBooks
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QuickBooks is the gold standard for small business accounting, and Airbnb hosts can use it to track their rental income and expenses. You can categorize transactions, generate profit and loss statements, and easily export data for tax preparation. That said, since QuickBooks is a robust platform, it can sometimes be difficult to learn at first.
2. Clearing
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Clearing is an Airbnb tax reporting and accounting software built specifically for property managers and owners. If you have a property management business, this can be a good option for you. You'll be able to easily manage income and expenses for multiple properties and generate separate owner statements with just a few clicks.
3. Xero
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Xero isn't specific to Airbnb hosts, but it's built a solid reputation as a user-friendly accounting platform that works well for small businesses. On their website, Xero also explicitly identifies landlords as one of the industries they serve.
You'll find robust features for tracking rental income and property expenses, and if you ever want to rent outside of Airbnb, Xero also helps with automated rent collection.
4. Wave
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Wave is designed primarily for service-based businesses and freelancers, but since the Starter plan is free, there's no risk in trying it to see if it works for your Airbnb business. The platform covers all the basics you need for simple rental accounting, such as tracking income and expenses and categorizing transactions.
If you have a straightforward Airbnb setup and don't mind doing a little manual work, Wave can be a great budget-friendly option.
5. Stessa
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Stessa is a property management software, but it's more suitable for traditional rental properties rather than short-term rentals, such as Airbnb. This means it includes features you probably won't need, including drafting leases, screening tenants, and collecting monthly rent.
That said, Stessa does organize transactions in ways that are uniquely helpful for property management, which is a plus. The free Essentials version should have all the basic financial features you need to track your Airbnb income and expenses, so it can be a good option if you're looking for something that won't break the bank.
How to choose the best Airbnb tax software for you
There are many Airbnb tax software options available, and not all of them will be right for you. Here's what to consider:
- Your budget: Consider whether you want a free option like Wave or Stessa, or if you're willing to pay for more advanced features
- Number of properties you own or manage: If you only have one or two listings, simpler software like Wave might work fine, but larger portfolios may benefit from more specialized platforms like Clearing
- Integration capabilities: Check if the software connects with your bank accounts, credit cards, and other tools you use
- Ease of use: There's likely always going to be a learning curve to using new software, but some are more beginner-friendly
You can also experiment with different tools and see which one you like best. Many Airbnb tax reporting and accounting software platforms have free trials.
Finding the right software is important, so take your time choosing the best option for your needs.
If your property is in another country, you might find it tricky and expensive to send money back and forth internationally.
| With the Wise account, you can top up your USD Wise balance with a domestic transfer that you will be able to convert at the mid-market rate with an upfront conversion fee. |
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Sources
- QuickBooks - Pricing
- Clearing - Pricing
- Xero - Pricing Plans
- Wave - Pricing
- Stessa - Pricing
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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