How do I setup Quickbooks for flipping houses?

Question

I have looked for along time online for good information about how to set up my quickbooks but can not find any good info.This software is not as easy as I thought it would be, thought it would be plug and play.

Anyways the only info I found was to set up classes for my properties.  Please let me know if you have any info for me.

Also, is "Charts of Accounts" where I put my tax, mortgage, utilities ect?

I am lost on how this program works please help.

Brian Burke · Answer

@Ryan S. I've used QB Pro for hundreds of flips, using classes is not the way to go. I used a system from a book called "Contractors guide to Quickbooks Pro" by Karen Mitchell (I have no affiliation). There is a lot of great info in the book for QB newbies, but the best chapter is the one on real estate development.  This is the chapter you want, it has step by step instructions on how to do a development deal in QB, and a flip works exactly the same.

Hopefully I don't eat my words, because my book is for QB 2001 (yes, I've been at this a while) and the current version is for QB 2014.  I don't have the new copy so I don't know if that chapter is still in the book so buy at your own risk.  I can say, however, that aside from the year the cover of the book hasn't changed at all. Hopefully the contents haven't changed much either. Good luck!

Luis Montanez · Answer

Hire a Virtual Assistant that is specialised in Real estate Bookkeeping and they will be able to help you out. Fees could be as low as $4 per hour and may even set it up for free if you hire them for your monthly bookkeeping needs.

Start your search at Odesk, freelancer or post an Ad at Craigslist in the philippines

Examples: http://manila.en.craigslist.com.ph/acc/

My degree is in Accounting and I rather bang my head agenst concreate than do any bookkeeping

Bryce Christensen · Answer

For flipping, using a job is probably a good idea- it has a clear start & end and it doesn't span more than 2 years.  Using a class would clutter your financials rather quickly.
	
	For holding a property for more than 2 fiscal (usually calendar) years, setting up a general class for properties by category (SFH, MFH, etc.) or geography and then having each distinct property as a subclass is a good idea, so you can print out a Profit & Loss as well as a Balance Sheet for each class or geography to make analysis easy.

If you get to the point that you have so many properties that this structure doesn't meet your needs, you might consider moving on from Quickbooks or grouping properties instead of presenting each individually.

I'm an accountant, but I'm not YOUR accountant.  This information is provided for general purposes and is no substitute for advice from a competent CPA familiar with the details of your situation.  By using this information, you agree to limit my liability to what you paid me for it (that's $0, btw).  Have a nice day.

Dick Rosen · Answer

I don't recall what it cost me several years ago but I was happy with what I got. Now I have developed my own class list and account list and I do not use Mike's system anymore but I know that I learned most of what I do by using his system.

I have been through 2 IRS audits and both the IRS and my CPA have commented on how clean and precise my accounting is. I do accredit this to what I learned from Mike's system but again, I don't use it any longer.

That may not have been a clear answer for you but it's the best I can do.

Tim Debronsky · Answer

@Dick Rosen Do you feel like Mike Butler's Investor Books Pro was a good investment?  It's pretty expensive.  Trying to decide whether it's necessary or just start with Quick Books Pro.

Adam B. · Answer

Hi Dick,

I am just getting started with flipping and setting up QB for the first time, I chose QB Online.  Any recommendation on the "Industry"? Any other pointers you can give to speed up the learning curve to utilize QB for RE flipping?

Ryan S. · Answer

Do I set the home addresses up as classes? or as a Job?

Steven Hamilton II · Answer

Ryan,

I'd be happy to explain a bit to you. Its not too bad once you have it set up correctly. The Chart of Accounts is where you list the different types of accounts. For Example:

Inventory: Real Estate Tax Expense
	Inventory: Acquisition Cost
	Inventory: Repairs X category

and so on as detailed as you want.

I'm in the north burbs if you want to do lunch one day. Just let me know.

How do I setup Quickbooks for flipping houses?

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