Accounting for Multiple Flips

[Ron P.]

I have multiple flips going, all under one LLC taxed as an S-Corp, and have the accounting structured as follows:

- One Quickbooks file and one bank account for each property. I could use one file and one bank account for all properties using QB classes but I think it's too easy to misclassify transactions. And one QB file for LLC related expenses like meals and entertainment, licensing, workers comp, etc.

- I write checks for each property from its respective checking account for things like property taxes, HOA dues, utilities, etc.

- For rehab materials I use the debit card you get with each bank account for each respective property. I would however like to use one credit card for everything so I can get the points which can amount to a lot, but fear that would complicate accounting.

What do you think? How do you do it? Is there a more efficient way?

[Account Closed]

You only need one company file, since you have only one LLC.

You use the class feature to designate what property generated it's income and expense, by listing each property as a an individual class.

When you use the class feature the class column appears on your transactions enabling you to link that transaction to the correct property in the class column.

You are making WAY TOO MUCH work for yourself. 

When you write a check for repairs on a property, link that expense to the property.

No need to setup a file for expense accounts.

One company file and the class feature makes using QuickBooks your very best friend.

Nancy Neville