Will appreciate any feedback from the folks who are already flipping the properties, How do you set it up in QuickBooks and is QB is capable to let me run the report and show how much I gain or loose on each property from closing, Rehabbing to Selling.
Or is there any better tool to track the expenses and run P&L on each project, other then Excel sheet :)
And finally any recom for someone who is specialize in setup of House Flipping accounts in QuickBooks.
Quickbooks Online is great at showing all of this information. You'll need to be able to identify the Sales Price, amount spent on labor & materials, amount spent on carrying costs, amount spent purchasing the property, and any other selling costs. Most QBO geeks I know (quite a few) suggest using "classes" in Quickbooks to separate your deals.
As for your setup question - how familiar are you with Quickbooks? It's built to pretty fairly easy to use, but not easy to use for house flipping unless you have an accounting background or are willing to learn accounting instead of finding your next deal.
Get someone who knows Quickbooks to help you set it up maybe 500 to set everything up correctly and show you how to use it.
Then get a CPA to do your taxes.
you could also look at other apps or software that is more REI friendly.
@Jason Friday Set up chart of accounts in inventory and COGS to track the costs of the property from acquisition thru sale. Set up each property as class, create one for Admin & overhead, so you can run report by property.
Proper set up of books and accounting process, learning how to enter HUD and categorize transactions are the keys to a successful accounting for property flipping. If you're not sure how to do it, have a professional set it up and coach you, it is a good investment. Look for accountant/CPA that are both knowledgeable on the software you use and REI accounting. Good luck!