QuickBooks: Which is best to track flips? CLASS or CUSTOMER:JOB

[Kelly Cruz]

I’ve seen QB pros mention tracking flips by either Class or Customer:Job? Is there a consensus as to which is the best way? What are the pros and cons of either method? Thanks for any input!

[Account Closed]

I like to use the Class Feature of QuickBooks because QuickBooks will keep track of every thing you do to that property via the Class Feature.

When you use the Customer:Job feature of QuickBooks this only relates to CUSTOMERS, thus the word Customer:Job.

Remember that anything to do with the Customer Center is regarded as INCOME. So you don't want to use Customer:Job in any way dealing with property expenses

I use the Customer:Job feature only for Reimbursable Expenses.  Meaning, if a tenant left damages and I have to pay my Handyman now, and I want the Tenant to pay me back, I then use the Customer:Job feature on the check that I write to my handyman..  This then tells  QuickBooks to bill my tenant for these charges.  When I click on that Tenants name in the Customer Center, that Bill (Invoice) is waiting for this tenant.  All I have to do is print it out and send it to him or her. 

The Bottom Line is that you want to utilize the class feature where you can take all your income and expenses and assign it to a class, that individual property, then run a Profit and Loss Report by Class whenever you need to. 

When you are doing flips, you want to list your property as a Fixed Asset Account in your Chart of Accounts and then add all expenses as a sub account of that flip, (WIP   Work in Progress) and link all expenses to that property (listed as a  Class) in QuickBooks, thus the reason to use the Class feature.

Take that property and also enter it as a Fixed Asset Item.  Here is where you can enter in everything you want to know about this property.  What you paid for it.  When you purchased it.  Land Description.  Square Feet.  Whatever you want to know. 

Nancy Neville