QuickBooks vs FreshBooks vs Wave: Best Accounting Software for Your First Airbnb

The quick answer

Use QuickBooks if you plan to grow to multiple properties, hire contract cleaners or handymen, or have a dedicated bookkeeper. Use FreshBooks if you do a lot of direct bookings and need to send invoices, or offer extra paid services like airport pickups. Use Wave if you are just starting with one property and need free, simple accounting to track income and expenses.

Side-by-side breakdown

QuickBooks Online is the top choice for most growing small businesses, including short-term rentals. It handles tracking income from Airbnb/VRBO payouts, categorizing expenses like cleaning supplies, utilities, mortgage interest, and property taxes. It's excellent for running reports needed for Schedule E tax forms and tracking asset depreciation (like furniture). Most professional accountants who specialize in rental properties prefer QuickBooks. Starts around $30/month.

FreshBooks is built for service businesses, like freelancers or consultants. For an Airbnb host, its main value might be if you manage many direct bookings and need to send clear invoices to guests, or if you offer extra services like local tours that you bill for separately. It's good for tracking time (if you pay staff hourly) and specific project expenses. However, it's not ideal for general rental property income tracking from major platforms like Airbnb or VRBO. Starts around $17/month.

Wave is free accounting software, perfect for first-time hosts with a single property. It lets you track rental income from platforms, log expenses like cleaning fees, internet bills, and minor repairs without paying a monthly fee. You can connect your bank account and issue basic invoices if you have direct bookings. Payroll (for employees) and payment processing are paid add-ons. It's genuinely capable for simple short-term rental accounting but has fewer features and less support than paid options.

When to choose QuickBooks

QuickBooks is the smart choice when your short-term rental business gets more complex. This includes managing multiple Airbnb/VRBO listings, hiring contract cleaners or a property manager, or if you need to track detailed inventory (like linens or toiletries). It’s also the go-to if you work with an accountant who specializes in rental properties; they’ll likely use QuickBooks and appreciate the robust reporting for tax planning, including tracking depreciation on your property and furnishings.

When to choose FreshBooks

FreshBooks might be useful for a very specific type of short-term rental host. If you frequently get direct bookings that require you to send professional invoices, or if you offer additional paid services to guests (e.g., grocery stocking, local experience guiding) and need to bill for those, FreshBooks’ strong invoicing and client management tools could be a fit. For standard Airbnb/VRBO payouts, where the platform handles the billing, it's generally less ideal than QuickBooks or Wave.

When to choose Wave

Wave is the perfect starting point for any first-time Airbnb or VRBO host, especially if you have one property and are on a tight budget. It allows you to accurately track all your rental income, categorize common expenses like cleaning, utilities, and minor maintenance, and keep records for your first tax season. Once you start hiring employees, manage multiple complex properties, or work with a bookkeeper who needs more advanced tools, plan to switch to a more robust system like QuickBooks.

The verdict

If you have multiple properties, hire staff, or plan serious growth: QuickBooks. If you primarily use direct bookings and need to invoice guests, or offer separate paid services: FreshBooks (though less common for standard hosts). For a single property, pre-revenue, or just starting out: Wave. Most hosts will find QuickBooks offers the best long-term solution for detailed financial tracking and tax preparation as their business grows.

How to get started

Begin with Wave if you're launching your first property or in your first year. Before you hire your first cleaner or manage a second property, consider upgrading to QuickBooks. Connect your business bank account, which receives your Airbnb/VRBO payouts, and dedicate time each month to categorize income and expenses. This habit will make your first tax season much smoother when filing your Schedule E.

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