All Forum Posts by: Dan V.

@Mauricio Duarte Based on how QBO is working right now, there's no way to get the deposit in the Expenses screen since it is limited to the transaction types below. Maybe in the future they will include a type called Vendor Refund, then that might work.

What kind of information are you exactly looking for why are you running the numbers in the Expenses window instead of P&L details? Maybe there's an alternative way to get the information you need. 

@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!

@Alec Pitts Welcome to BP!

@Jackson Long

If you're using QBO, there's a new tab in the Banking section called Receipts. I have not played with it yet but here's an article about it. Hope you'll find it useful and let us know how it goes. 

@Mauricio Duarte Either approach (inventory or COGS) will be able to get you the project progress report, so it's a matter of preference so if you think COGS approach works better for your purpose then go with it. 

The P&L percentage report can be found under the Business Overview report group > Profit and Loss as % of total income.  You can play around the options, but it should give you percentage of total income or percentage of net income option, at least. You can filter out the class to include only sold properties. 

To be honest, I like J Scott's approach for 2 reasons. 1st, it's easier to drill thru the COGS details since everything is posted there, 2nd, you can run budget vs actual if you plan to utilize the Budgeting feature to track your progress directly from QBO. It is more of a work around rather than a shortcut. And as long as you keep in mind that COGS for unsold properties needs to be moved to balance sheet to get an accurate financials, then I think it's not a bad idea. 

@Mauricio Duarte I don't recommend using Expense screen to view all your expenses since that may not capture all transactions, ie. refund from store processed as deposit or journal entry. I suggest running financial reports (ie P&L or balance sheet) instead. For flips, we usually create custom report to keep track of the project costs and another report to show historical data of all sold properties as percentage of income. 

Journal entry can be found in the "+" sign in the upper right hand corner, then under the "Other" group. Again, journal entries will not show up in the Expenses window. 

As Gita mentioned, it's important to set up your books and accounting process the right way, the first time. 

@Shedrick Archangel Quickbooks here, just make sure it is set up right!

 Both versions will work, you just need to set it up right. Some prefer desktop since it's cheaper but some prefer online for accessibility and convenience. I think most of those who prefer desktop are handling their books in-house while online users outsource their bookkeeping. 

@Amar P. Would it be nice to have both? YOu have accrual to analyze your business and cash for tax purposes. For the income side, the way I would set it up is by creating an invoice for every booking (that is your accrual) and once you received the payment from Airbnb (that's the cash method), you can apply the payment to the invoice. For the expense side, I would enter the bills, then oay. With this setup you can run either accrual or cash method reports with just a click of a button (I know QBO has the option). 

If you are using another platform (ie. VRBO, Booking.com) you can create a product for each, that way you can also keep track on how much booking you get for each platform. 

What are the pros and cons of being a non-occupying  co-borrower? Planning to help my dad buy his first property but he has low income. Thinking of buying a property close to his work and house hack it. Both of our names will be in the title so I'm wondering who will claim the rental income/expense or if we sell it later on who will report the sale in the tax return? Also, if either of us wanted to transfer full ownership to one of us later on, will that result in a taxable transaction?

I will appreciate any help. For all the accountants, lawyers and other specialists out there, I will use any response for informational purposes only.