cancel
Showing results for 
Search instead for 
Did you mean: 
Z Zee
Level 4

flipping houses

Hi,

 

Can anyone help me with setting up chart of accounts for flipping houses correctly.

How do i enter renovation costs into qb? is it asset, cogs, or expense?

Ex: construction material, subcontractors, appliances, lighting etc.

 

Thank you.

2 Comments 2
Rustler
Level 15

flipping houses

There are no expenses to flipping a house, everything you pay out is part of the cost of the flip.

 

I set up a cash type bank account named for the house, street address usually. Everything I pay to flip the house is posted to that account as an expense (reason) for the payment.

 

When the house is ready to sell it becomes an asset, usually inventory if you are in the business of flipping. Create the inventory item, zero cost and qty, then "buy" the inventory item from a dummy vendor you create using the full amount in the house bank account. That will stock the item with cost and qty.

 

Later you sell the house inventory item. The cost will post to COGS, the income will post to income automatically.

Z Zee
Level 4

flipping houses

Thank you for the clear response!

 

If anyone else enters it differently, I'd love to hear from you as well to see my options of how this can be entered.

Need to get in touch?

Contact us