Labelling you Properties/Projects in Quickbooks

4 Replies

For those who flip and do NOT hold your properties. How do you label your properties you flip in Quickbooks? Do you label them or create a project? Curious to see what are the best ways based on experienced flippers.

Depending on what quickbooks subscription you have depends on the answer.  If you have the subscription that you can create classes, my bookkeeping clients do that.  You can then apply all transactions to each property, also create a general one that is your office expenses. Let me know if you have questions and I can help you through it.

@Wesley Harper

It really depends on what purpose you are using the accounting software/quickbooks for.

If you are talking about for tax purposes - using the class function is WRONG. The reason for this is expenses for the activity will run through to net income when in reality it maybe shouldn't be reported on your return.
Furthermore, your accountant will not know what activity is complete or not.

If it is for tax purposes - you must use the inventory function.

If you are just trying to track the progress of the flip projects, then by all means, use the class function.