6. Managing finances
Getting paid faster
Airbnb issues a payout the day after your guest checks in. If you haven’t started using direct deposit for your Airbnb payments, you should. Having your payments deposited directly into your bank account eliminates trips to the bank and gets your money to you faster. You can set your payout preferences to pay you immediately after each guest checks in, or you can set a minimum payout amount.
You should always keep careful records of your business transactions, especially for tax purposes. There are several free services that help you organize your transactions and give you a clearer picture of your business, where you are spending your money, and where you could save without compromising service and quality. We use Wave and absolutely love it. It is free and easy to use. During tax time, I simply invite my CPA to join as a collaborator, and he takes it from there.
Seriously consider a separate bank account
A separate bank account for your business is indispensable. There is simply no other reliable way to keep track of your revenue and expenses.
Organization and planning is key
It is important to talk to your CPA before you start your hosting business. A CPA will help you develop a plan for lowering taxes and keeping track of expenses for deduction purposes.