How to Use QuickBooks for Flipping a Houseby David Miller
Flipping a house can be a very trying and detailed process. You will have to deal with the demands of dealing with subcontractors and material suppliers--not to mention local government agencies. If you do not keep track of your expenditures, then a potential profit can become a loss very quickly. Using QuickBooks financial software will help you to overcome the challenge of tracking your project’s financials. QuickBooks is one of the best-selling financial software packages for small businesses today.
Create a chart of accounts by pressing “CTRL + A” on your keyboard. This will list your income categories and your expense categories. It is better if you develop your chart of accounts and the categories you will use prior to entering the information into QuickBooks.
Create a new account by pressing “CTRL + N” on your keyboard. You will need to specify whether the account is an income account or expense account. Create expense accounts that correspond with your projects. There are many books that outline home renovation categories that you can use for reference.
Specify whether the account is a subaccount. Maybe you want to have plumbing as an expense and have subaccounts of fixtures and subcontractors or permits. This will help you keep the expenses separated.
Select “Report Center” on the toolbar. Select “Company and Financial” and “Profit and Loss.” This will give you a P&L statement that you can use to determine your expenses and income. This can also be a tool for presentation to local lending institutions for future projects.
- link QuickBooks Support
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