Clarity drives control — and what gets measured accurately determines where you truly stand and where you’re headed. In short-term rental investing, intuition is not enough. Without a disciplined accounting system, you can’t clearly see profitability, cash flow trends, margin compression, or looming liabilities. Proper accounting serves as your financial compass, revealing economic reality and guiding strategic decisions with precision.
This month-end checklist focuses on the controls that actually keep short-term rental books clean: reservation-level reconciliation, occupancy tax and deposit liability accuracy, full expense capture by property, and property-level reporting that prevents strong listings from masking weak ones. Follow it each month to close faster, reduce cleanup work at tax time, and produce financials you can confidently use to price, budget, and scale.
Monthy Checklist Overview
| Task | Summary |
|---|---|
| Reservation Reconciliation | Verify that all reservation activity for every property is recorded in your accounting system on a detailed, line-item basis, and that each reservation is reconciled to the corresponding bank deposit. – Read more |
| Occupancy Tax Reconciliation | Verify that all occupancy taxes collected from each reservation are accurately recorded and posted to the appropriate tax liability accounts for every property. – Read more |
| Reconcile Remaining Transactions | Record all remaining accrued vendor and operating expenses, allocating each to the appropriate property. Then categorize and reconcile any remaining bank and credit card transactions to ensure the records are complete and accurate. – Read more |
| Generate Statements for Each Property | Prepare a property-level income statement for each property detailing revenue, expenses, and net profit to compare performance across the portfolio and clearly assess profitability for both internal analysis and client reporting. – Read more |
| Remit Occupancy Taxes Due | Remit collected lodging and occupancy taxes for jurisdictions with filings due, confirm liability balances reconcile to amounts collected, and submit payments on time to maintain compliance and avoid penalties. – Read more |
| Payroll Obligations | Review payroll and employee benefits for accuracy and eligibility, and submit all required federal and state payroll tax filings and payments on time. – Read more |
| Accounts Payable | Review outstanding accounts payable for accuracy, reconcile vendor statements, investigate discrepancies, and include an aging report with your financial package to track upcoming and overdue obligations. – Read more |
| Accounts Receivable | Review accounts receivable for accuracy, run an aging report to identify overdue balances, initiate collections as needed, and include the aging summary in your financial package to maintain visibility into outstanding receivables and cash flow exposure. – Read more |
| Amortize Prepaid Expenses | Amortize prepaid expenses (e.g., insurance, repairs, software) over the periods they benefit to match costs properly and reflect accurate monthly profitability. – Read more |
| Income Statement | Review the income statement for accuracy and reasonableness, ensuring revenue and key expenses align with operational activity and investigating any unusual variances or misclassifications. – Read more |
| Balance Sheet | Review the balance sheet for accuracy, reconciling cash, loans, and key liabilities (e.g., occupancy taxes) to supporting documentation and resolving any discrepancies. – Read more |
| Review Monthly KPIs | Monitor key metrics to assess pricing, demand, and overall performance. Track expense ratios, guest reviews, and response times, as these directly impact visibility and profitability. – Read more |
| Strategic Financial & Cash Flow | After closing the month, analyze financial statements to identify trends and performance drivers, prepare management insights, review cash flow movement, and use the findings to guide pricing, cost control, forecasting, and capital planning. – Read more |
| Finalize and Deliver Financial Reports | Finalize all monthly financial reports and deliver them to the appropriate stakeholders to provide clear insight and demonstrate the value of your financial oversight. – Read more |
Monthly Checklist Detailed
🗹 Reservation Reconciliation
Tasks
- Record each remaining reservation with detailed line-item allocation to the appropriate accounts by property.
- Match each reservation entry to its corresponding bank deposit.
Description
Platform payouts rarely tell the full story. A single Airbnb deposit often bundles multiple reservations, fees, taxes, and adjustments — making detailed reconciliation essential.
At month-end, ensure every remaining reservation for each property is recorded on a line-item basis in your accounting system. Capture gross accommodation revenue, cleaning fees, add-ons, platform service fees, refunds, and adjustments separately — not just the net deposit. Proper allocation to the correct chart of accounts (based on your specific business model) ensures your income statement reflects true gross revenue and your balance sheet accurately reflects liabilities such as occupancy taxes and advanced guest deposits.
How each line item is allocated depends on the business model under which the property operates, as each model requires a distinct chart of accounts. Below are several examples for reference.
- Investment Property Accounting: QuickBooks | Xero
- Rental Arbitrage Accounting: QuickBooks | Xero
- Co-Host Accounting: QuickBooks | Xero
- Property Management Accounting without a Trust Account: QuickBooks | Xero
- Trust Accounting for Property Managers: QuickBooks | Xero
Each reservation entry should then be matched to its corresponding bank deposit. Because payouts often combine multiple stays into one transfer, structured reconciliation is critical. Tallybreeze automates this workflow by generating reservation-level invoices, linking them to payouts, and clearing them through a payment clearing account when the deposit hits the bank. This process reduces month-end close time, eliminates guesswork, and keeps your books clean, accurate, and audit-ready.
Automate reservation reconciliation with Tallybreeze
🗹 Occupancy Tax Reconciliation
Tasks
- Record any remaining occupancy taxes collected for each reservation to the appropriate property.
- Reconcile any remaining tax entries to corresponding bank deposits.
Description
Occupancy taxes are funds collected in trust — not revenue — and misclassifying them can materially distort your financial statements.
At month-end, ensure all lodging and occupancy taxes collected for each reservation are accurately recorded to the appropriate Occupancy Tax Payable liability account by property. Confirm that no tax amounts are posted as income and reconcile all remaining tax entries to the corresponding bank deposits or platform payouts. When properly configured, booking platforms calculate and collect these taxes at the time of reservation, preventing the host from inadvertently absorbing the cost.
If using Tallybreeze, occupancy taxes collected within each reservation payout are automatically captured and posted to the correct liability accounts, streamlining reconciliation and reducing error risk. Accurate recording and reconciliation keep your income statement clean, your balance sheet correct, and your records audit-ready when it’s time to file and remit taxes.
🗹 Reconcile Remaining Transactions
Tasks
- Enter all remaining bills into the accounting system allocating each line item to the appropriate property including…
- Cleaning contractor bills
- Maintenance contractor bills
- Recurring utility bills, association fees, and resort fees
- Mortgage, rent or property management bills
- Categorize all outstanding bank and credit card transactions
Description
Small uncoded expenses and unreconciled transactions can quietly distort profitability. A disciplined final sweep at month-end ensures nothing is overlooked before reports are finalized.
Record all remaining vendor bills and operating expenses in detail, allocating each line item to the appropriate property. This includes cleaning and turnover invoices, maintenance and repair bills, utilities, HOA and resort fees, mortgage payments (properly separating principal and interest), rent, and property management fees. Clear classification — particularly distinguishing repairs from capital improvements — is essential for accurate reporting.
Finally, categorize and reconcile all remaining bank and credit card transactions, including software subscriptions, insurance, marketing, and overhead costs. Reconcile accounts to their statements to confirm completeness and accuracy, ensuring the books fully reflect the month’s operational activity before closing.
🗹 Generate Statements for Each Property
Tasks
- Run a property-level income statement (Profit & Loss by Property or Class).
- Review each property’s revenue, expenses, and net profit for accuracy and reasonableness.
- Compare performance across properties to identify variances and analyze key ratios (e.g., cleaning cost %, management fee %, net margin).
- Finalize and distribute property-level statements for internal review or client reporting.
Description
Portfolio-level numbers can hide performance issues. Property-level reporting ensures each listing stands on its own financially. For managers reporting to owners, this level of transparency builds trust and reinforces the value of professional oversight.
At month-end, prepare a detailed income statement for every property, outlining gross rental revenue, guest-paid fees, and all related operating expenses — including platform fees, cleaning, maintenance, utilities, HOA dues, management fees, insurance, and financing costs where applicable. Review each statement for accuracy and reasonableness before finalizing.
How each report is presented depends on the business model under which the property operates. Below are several examples of owner statements and monthly property reports for reference.
- Trust Accounting Owner Statement: QuickBooks | Xero
- Investment Property: QuickBooks | Xero
- Rental Arbitrage: QuickBooks | Xero
- Co-Host: QuickBooks | Xero
- Property Management without a Trust Account: QuickBooks | Xero
Analyzing results at the individual property level allows you to compare profitability across listings, evaluate key expense ratios, identify underperforming assets, and detect margin compression early. For multi-property investors, this prevents stronger properties from masking weaker ones. For property managers, it provides transparency and clearly demonstrates the value of disciplined financial oversight.
🗹 Remit Occupancy Taxes Due
Tasks
- Reconcile collected occupancy taxes to the appropriate liability account for each property.
- Identify jurisdictions with filings due for the period.
- File returns and remit payments by the required deadlines for each jurisdiction.
Description
As noted earlier, occupancy taxes are trust funds collected on behalf of government authorities — not revenue for your business — making accuracy and timeliness essential.
At month-end, reconcile all lodging and occupancy taxes collected to the appropriate liability accounts for each property, ensuring amounts recorded match platform reports and direct booking records. Confirm which jurisdictions have filings due for the period, as requirements may vary by state, county, or municipality and may be monthly, quarterly, or annual.
Prepare and file the required returns accurately, reporting gross rental revenue and taxable amounts correctly, and remit payments by statutory deadlines. Maintain documentation of filed returns and payment confirmations to support compliance and audit readiness. Consistent reconciliation and timely remittance protect your business from penalties, interest, and regulatory risk.
🗹 Payroll Obligations
Tasks
- Review payroll for accuracy, including wages, employer taxes, and benefit deductions.
- Confirm employee benefit eligibility and reconcile contributions to provider invoices.
- Verify payroll tax liabilities are correctly recorded.
- File and remit required federal and state payroll taxes on time.
- Reconcile payroll liability accounts before closing the books.
Description
Payroll is a high-risk area that requires precision and timely compliance.
At month-end, review all payroll activity to confirm wages, employer taxes, and benefit deductions are accurately recorded and properly reconciled. Ensure only eligible employees are enrolled in benefit plans, verify that withholdings align with provider invoices, and confirm employer contributions are correctly accrued.
Next, verify that all payroll tax liabilities — including federal, state, and unemployment taxes — are properly recorded and that required filings and payments are submitted on time. Reconcile payroll-related liability accounts to payroll reports and tax filings before closing the books to maintain accuracy and compliance.
🗹 Accounts Payable
Tasks
- Review all outstanding accounts payable balances to ensure accuracy and completeness.
- Generate an accounts payable aging report and include it with the monthly financials.
- Reconcile vendor statements to confirm recorded purchases and payments are correct.
Description
Unmonitored payables can quietly disrupt cash flow and strain vendor relationships. A disciplined month-end review ensures your obligations are accurate, timely, and well-controlled.
Accounts payable represents amounts owed to vendors for services and expenses already incurred. At month-end, review all outstanding balances to confirm invoices, amounts, and due dates are accurate and complete. Reconcile your accounts payable ledger to vendor statements to ensure recorded purchases and payments match supplier records, and investigate any discrepancies or unusual variances.
Generate an accounts payable aging report to identify upcoming payments and overdue bills, and include it in your monthly financial package. Consistent oversight of accounts payable strengthens internal controls, maintains vendor trust, and supports sound cash flow management.
🗹 Accounts Receivable
Tasks
- Review accounts receivable balances to ensure invoices, amounts, and customer records are accurate and complete.
- Generate an aging report, identify overdue balances, and initiate collection follow-ups as needed.
- Include the accounts receivable aging summary with the monthly financial package for visibility into outstanding receivables.
Description
Uncollected revenue can quietly erode cash flow, even when your income statement looks strong. A consistent month-end review of accounts receivable ensures that earned revenue is actually converted into cash.
At month-end, review all accounts receivable balances to confirm invoices, amounts, and customer records are accurate and complete. Generate an aging report to identify overdue balances and initiate timely collection follow-ups where necessary. Providing customer statements can improve transparency and speed up payments.
Include the accounts receivable aging summary with your monthly financial package to maintain visibility into outstanding receivables and overall cash flow exposure. Proactive oversight of receivables strengthens liquidity and reduces bad debt risk.
🗹 Amortize Prepaid Expenses
Tasks
- Allocate and amortize any prepaid expenses over the periods they benefit.
Description
Large upfront payments can distort monthly profitability if expensed all at once. Proper amortization ensures your financial statements reflect the true economic activity of each period.
At month-end, allocate prepaid expenses — such as annual insurance premiums, HOA dues, or software subscriptions — across the months they benefit rather than recording the full amount in the month paid. Spreading these costs systematically aligns expenses with the periods they support, improves accuracy in financial reporting, and provides a clearer view of ongoing operating performance.
🗹 Income Statement
Tasks
- Run the month-end Income Statement (P&L) for the entire business.
- Verify revenue recorded aligns with overall occupancy.
- Review major expenses (cleaning, utilities, maintenance, HOA) for consistency.
- Compare results to prior periods/budget and investigate variances.
- Correct any errors before finalizing reports.
Description
The income statement tells the story of your overall portfolio’s performance — but only if it’s accurate. A disciplined month-end review ensures the numbers reflect economic reality, not posting errors or timing differences.
Run the month-end Profit & Loss report and review it from top to bottom. Confirm that revenue aligns with occupancy, ADR, and completed stays, and that income is recorded on an accrual basis. Evaluate major expense categories — including cleaning, maintenance, utilities, and HOA dues — for consistency with operational activity and prior periods. Compare results to previous months or budget and investigate any material variances.
Before finalizing reports, correct any discrepancies or misclassifications. A thorough income statement review serves as a final quality-control step, ensuring reliable financial reporting and informed decision-making.
🗹 Balance Sheet
Tasks
- Run and review the month-end Balance Sheet.
- Verify key balances (assets, liabilities, equity, deferred revenue, occupancy taxes).
- Investigate and correct any discrepancies before finalizing reports.
Description
The balance sheet is the only financial statement that reveals what your business truly owns, what it owes, and how much equity remains — making it the ultimate integrity check of your books at month-end.
Run and review the Balance Sheet to ensure all asset, liability, and equity balances are accurate and properly supported. Perform a final check to confirm that cash accounts match bank statements, receivables and prepaid expenses are reasonable, and loan balances reflect accurate principal and interest activity. Pay close attention to deferred revenue (advanced guest deposits), security deposits, and occupancy tax liabilities to ensure they are recorded correctly.
Investigate and resolve any unusual balances or discrepancies before finalizing reports. A disciplined balance sheet review acts as a final safeguard, ensuring your financial statements are complete, accurate, and reliable.
🗹 Review Monthly KPIs
Tasks
- Review and calculate key KPI’s.
- Prepare KPI report to client.
Description
Financial statements show what happened — KPIs explain why. Consistently tracking the right metrics transforms raw numbers into actionable strategy.
Each month, review core performance indicators that drive profitability in the short-term rental industry. Start with Occupancy Rate, Average Daily Rate (ADR), and Revenue per Available Night (RevPAN) to measure demand and pricing strength. Evaluate Gross Revenue, Net Operating Income (NOI), and Cash Flow to assess true investment performance. Comparing these metrics across properties reveals which listings are outperforming and which may require operational or pricing adjustments.
Operational KPIs are equally critical. Monitor cleaning costs, platform fees, and maintenance expenses as a percentage of revenue to protect margins. Track guest review scores, response times, cancellation rates, booking lead time, length of stay, and repeat guest rate to refine marketing and pricing strategy. Regular KPI analysis enables proactive decision-making, early identification of underperformance, and smarter portfolio growth planning.
🗹 Strategic Financial & Cash Flow Review
Tasks
- Prepare financial report commentary summarizing key trends, variances, and performance insights.
- Analyze results to identify operational or cost drivers and inform strategic decisions.
- Review and interpret the cash flow statement to understand sources and uses of cash.
- Assess timing gaps or liquidity risks and adjust forecasting or capital planning as needed.
Description
Closing the books is not the finish line — it’s the starting point for better decisions. The true value of financial reporting lies in how the numbers inform strategy.
After month-end close, analyze the finalized financial statements to identify trends, material variances, and performance drivers across properties. Prepare concise management commentary highlighting insights on revenue growth, expense ratios, margin shifts, and property-level profitability. For example, if cleaning costs are rising as a percentage of revenue, it may signal operational inefficiencies or pricing adjustments are needed. If one property’s margins are compressing, it may warrant a review of ADR strategy or vendor contracts.
Next, review the cash flow statement to understand how cash is moving through the business. Identify whether operating cash flow is sufficient to cover debt service, capital expenditures, and distributions. Evaluate timing gaps between guest deposits and large expense outflows, and assess liquidity risk. Use these insights to refine forecasting, adjust capital allocation, optimize cost controls, and strengthen long-term investment strategy.
🗹 Finalize and Deliver Financial Reports
Tasks
- Finalize reports and compile into a structured financial package.
- Deliver reports to all necessary stakeholders.
Description
At the completion of your month-end close, assemble a comprehensive financial reporting package for each client or property owner. At minimum, include a consolidated Income Statement (Profit & Loss), Balance Sheet, and Cash Flow Statement. Where applicable, also provide property-level income statements and supporting schedules such as accounts receivable and payable aging, occupancy tax summaries, and loan balance reports.
Ensure all reports are finalized, reconciled, and internally reviewed before distribution. If managing multiple properties, include a breakdown by listing to provide transparency into individual performance and overall portfolio trends. Consider adding a brief management summary highlighting key metrics — such as revenue, margins, occupancy trends, expense ratios, and cash flow — to provide context and support decision-making.
Deliver the package in a structured, professional format and on a consistent monthly timeline. Reliable reporting builds trust and clearly demonstrates the value of strong financial oversight.
Final Thoughts
Strong portfolios are not built on bookings alone — they are built on clarity. Revenue growth means little if taxes are misstated, expenses are misclassified, or cash flow timing is misunderstood. A disciplined month-end process transforms raw reservation data into reliable financial intelligence.
When reservations are reconciled properly, occupancy taxes are recorded as liabilities, expenses are fully captured by property, and financial statements are reviewed with intention, your numbers become trustworthy. And when your numbers are trustworthy, your decisions improve — pricing becomes strategic, cost controls become proactive, and capital allocation becomes intentional.
Consistency is what compounds. Close each month the same way, every time. Over time, this discipline doesn’t just keep your books clean — it strengthens margins, protects cash flow, and positions your portfolio for intelligent, sustainable growth.