Navigating the financial side of running vacation rentals can be tricky. It isn’t just about crunching numbers; it’s about ensuring the smooth running of your vacation rental business, whether you’re renting out a single beachfront cottage or juggling multiple urban apartments.
With vacation rental accounting software, the daunting tasks of tracking expenses, managing cash flow, and keeping up with multiple bank accounts become automated. This means less time spent on manual data entry and more time to focus on what really matters—providing an outstanding experience for your guests and growing your business.
In a nutshell, it’s about making your life easier. The software’s user-friendly dashboards and the ability to handle everything for you make financial management less of a headache. So we’ll be walking through some options to get you the perfect accounting software.
Between tracking every dime of income from bookings to making sure you’re not spending too much on cleaning fees or falling foul of local regulations, it’s a lot. That’s exactly where vacation rental accounting software steps in. It takes all of that off your hands.
First off, it automates financial tasks. Imagine not having to manually track each payment or expense because the software’s got your back, reducing errors and saving precious time.
Then, there’s the real-time financial monitoring and reporting feature. This means you can see how your business is doing financially at any moment—information that’s gold when you’re trying to make smart, quick decisions.
Tax season is often a headache for many, but it doesn’t have to be. The software simplifies tax prep and compliance, organizing your financials in a way that makes sense come tax time and ensuring you’re playing by the rules.
And because no vacation rental operates in isolation, the software’s ability to integrate with other property management tools and platforms (like ours) is a game-changer. It means everything from bookings to bank accounts can talk to each other, streamlining operations and making life a lot easier.
In essence, accounting software manages all of the financials for you.
So what should you be looking for? Here are the key features to look out for when you’re picking any kind of bookkeeping software:
Each of these features plays a vital role in the smooth operation and financial management of your vacation rental business, ensuring that you can focus on providing great experiences for your guests while maintaining control and insight into your business’s financial health.
Property managers and vacation rental owners alike could benefit from having the right accounting software, so we’ve taken a look at 5 of the best accounting software offerings for vacation rental businesses on the market.
Quickbooks is a household name when it comes to number crunching. Because of its extensive features when combined with Bnbtally, QuickBooks Online gets suggested to vacation rental owners often, especially for Vrbo and Airbnb.
For Airbnb hosts, it provides comprehensive invoicing, class tracking, and a customizable chart of accounts templates. QuickBooks Online is available for a free 30-day trial, with a monthly subscription fee of $30. The monthly fee for Bnbtally integration, which allows for up to two listings (Fit Small Business), is $32.
With its unlimited income and expense tracking, real-time updates for payroll, payments, and invoicing, and ease of use, Wave stands out as a fully free accounting software option. It’s perfect for smaller rental companies looking for simple fixes without having to pay extra fees.
Because it supports multiple currencies and provides real-time bank connectivity, invoicing, expense tracking, and other features, Xero is a great option for Airbnb owners who have properties spread across different locations. Plans for Xero begin at $13 per month after a 30-day free trial.
With features like automated accounting procedures, online payments integration, and expense tracking, TopNotepad is renowned for its affordability and ease of use. There’s a free trial first, and there are annual plans starting at $34.72 for the Pond plan and $62.5 for the Lake plan.
With a $20 monthly basic plan and a $30 monthly premium plan, Patriot Accounting offers a reasonably priced solution. Although it’s said to have some bugs and a confusing interface, it offers features like automatic bank transaction imports, production and printing of 1099s and 1096s, and unlimited payments to vendors.
Pros:
Cons:
Software | Pricing | User Experience | Scalability | Ease of Use |
QuickBooks Online with Bnbtally Integration | QuickBooks: Starts at $30/month. Bnbtally: Starts at $32/month for the first two listings. | Highly detailed and comprehensive, suitable for detailed financial management. | High scalability with Bnbtally allowing for integration per listing, suitable for growth. |
Can be complex; steeper learning curve but highly efficient once mastered.
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Wave | Completely free, charges for payroll tax servicing and payment processing. | Highly favorable for ease of use and straightforward accounting needs. | Scalable for small to medium businesses, but might be limited for large operations due to simpler features. |
Very easy to use, making it ideal for beginners or small businesses.
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Xero | Starts at $13/month after a 30-day free trial. | User-friendly with a clean interface and integration capabilities with other tools. | Good scalability with multi-currency support and integration features. |
Considered easy to use with real-time updates and cloud-based access.
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TopNotepad | Free trial available. Plans start at $34.72/year for the Pond plan. | Simple and straightforward, focusing on essential accounting needs. | Suitable for individual hosts or small businesses, might lack advanced features for large-scale operations. |
Very easy, designed for users who prefer simplicity over complexity.
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Patriot Accounting | Basic: $20/month. Premium: $30/month. Offers a 30-day trial. | Some users find the interface confusing, and there have been reports of delayed support. | The feature set supports scalability, but interface and bug issues could hamper large-scale use. |
Mixed reviews on ease of use due to interface and customer support issues.
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Ideally you’d probably like to have one solution that can cover your general management tasks on top of financial reporting and management. This is possible with good property management software.
The extent of your property management activities and your unique requirements will determine whether a property management system (PMS) is adequate for your needs. With many features designed specifically for managing rental properties, a PMS can be extremely powerful.
But in some cases, particularly when it comes to intricate financial management, specialized accounting software might be more useful. This could include managing an expanding portfolio, preparing taxes, and producing thorough reports.
So to recap, as comprehensive as your vacation rental software may be, having a dedicated vacation rental accounting program might help you efficiently manage a lot more things. Generate invoices, calculate taxes, keep track of income and expenses, generate financial reports… The best accounting software for your vacation rental business will be robust enough to handle all of that and more.
Whether you’re a property manager or a short-term rental property owner, the right accounting software will make revenue management—and your life—a whole lot easier.