Help tracking third-party rental management fees for my RV business (edited)
I rent my RV out as a business and use an online rental platform that does all the listing, verifying renters, insurance and money handling. They receive the money, take a percentage off for their services and send the rest to me. I would like to include that percentage as an expense but can't figure out how to do that on either an invoice or credit memo.
Do I need to keep a dummy [bank] account? Or how do I do that?
Best Answer
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I'm not sure exactly how much detail you are trying to capture, but you could treat this the same way I treat income from a (very small) oil royalty interest. In my case, there is a gross amount, a deduction for management fees, and a deduction for certain taxes, resulting in the net amount that is actually deposited in my bank.
When the transaction comes in for the net amount, I edit it and create 3 splits:
- gross income (positive)
- management expense (negative)
- tax expense (negative)
The income split minus the 2 expense splits totals up to the amount of the net deposit, so the actual amount of the transaction remains unchanged. But in my reports I see the gross income and all of the expenses listed. I can also link the income and expense categories to tax lines if I choose.
DryHeat
-Quicken Classic (1990-2020), CountAbout (2021-2024), Simplifi (2025-…)1
Answers
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@Brenda1, thanks for posting your inquiry to the Community!
To allow the Community to begin assisting you, please provide some additional details:
- Do you currently have a business set up in Quicken Business & Personal?
- Are you looking to invoice the company that manages your RV rentals via Quicken Business & Personal?
- Or are you just looking to track the portion they keep as a tax-related expense in Quicken Business & Personal?
- When the rental platform sends you payment, is the service fee deducted before the deposit reaches your bank account?
- Are you entering the rental income manually, or are the deposits downloaded from your bank?
We look forward to hearing back from you!
-Coach Natalie
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I have already set up the rental business in QBP and just want to track the tax related expenses for my own taxes. I don't send any invoices out. (I'm not even sure if invoices are the best way to do this.) I recently (in December) switched from Quicken Classic after using that for nearly 30 years. The company sends my payment directly to my bank with the percentages and fees already deducted.
Thank you for any help!
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In my original post, I should have said dummy bank account, not dummy business account.
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I really appreciate the answer from @DryHeat and I have tried to implement that workaround. But I have been unsuccessful in matching up the payment transactions to the invoices because of the difference in amounts. (Gross income vs. Net income on the transaction deposited to my bank account.
One other workaround I have tried is to add an item to the invoice as a negative amount to account for the fees charged. But I can't categorize any item as anything other than business income. If I could categorize this fee as "Business: Advertising", for example, it would solve all of my problems.
Is that a possibility? Or is there another solution to this accounting issue?
Thanks!
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Sorry, I didn't know you were going to still try to use invoices. I don't do that so maybe someone else will have some advice for you. You could always make multiple transactions (one for income and one for expenses) but then it won't match transaction-for-transaction to your bank statement.
Good luck. I hope you find a solution.
DryHeat
-Quicken Classic (1990-2020), CountAbout (2021-2024), Simplifi (2025-…)1 -
@Brenda1, I would recommend trying the same thing mentioned in our support article here for Stripe, where you link the split line that's for the gross amount to the invoice:
- When Stripe payment transactions download into Quicken Simplifi, they will be less due to Stripe's processing fee. Here is how this works in Quicken Simplifi:
- The transaction will download as a Split:
- The "income" portion will be for the full amount of the invoice, before the fee.
- The "expense" portion will be the processing fee charged by Stripe.
- The "total" for the transaction will be the net amount for these two splits, and is what you actually receive after the fee.
- The "income" split portion for the full invoice amount needs to be applied as the payment to the invoice. This is how your Client Invoices account will balance out with the processing fee.
- The transaction will download as a Split:
If this doesn't work for you and no other users come along with suggestions, I'd recommend contacting our Chat/Phone Support team directly so they can get on a screen share with you, so you can walk them through your workflow.
Let us know what ends up working for you, in case it helps other users!
-Coach Natalie
0 - When Stripe payment transactions download into Quicken Simplifi, they will be less due to Stripe's processing fee. Here is how this works in Quicken Simplifi:
