All Forum Posts by: Kelly Cruz

Thank you all for the helpful info!

Thank you so much for the excellent explanation @Account Closed !!

Are you suggesting to list the flip as a Fixed Asset instead of Current Asset? Are there functional advantages to listing it this way? Because the property is held for less than a year, it would technically be considered a Current Asset, but I’m less concerned about strict terminology as I am with having the program function optimally.

Thanks again for your advice! 

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!

@Simon W. never mind my last post, I'm pretty sure I got that all wrong.

We do have 1 LLC, but different properties may have a different equity split.

ADDITIONAL QUESTIONS:

When flipping, I understand that all expenses for that property are recorded as WIP then moved to COGS on the sale. When entering the final Settlement Statement, should I list all those costs such as escrow fees, property tax, commission, etc to the WIP account? Or should I itemize them to the corresponding COGS/expense accounts? To simplify the accounting, can everything for a property be adding to the WIP account, possibly in different sub-categories – rehab, holding costs, selling costs, etc.? That would seem like the simplest way if itemizing isn't necessary.

Regarding general expenses, I have those labeled as a class. At the end of the year, I run a report and add up the total so that I can split them between equally between the three partners.  How do I do that so it reflects on each partners share of profit/loss equity account? Thanks again for any advice! 

To keep track of partners equity % in each particular property, does this make sense…..on the purchase of a flip property, create a sub-account as shown below? The sub-account will show how much of each owners money was invested.

Partner 1 Equity

• Partner 1 Investments
  • Partner 1 Ownership 321 Main (33.33%)
  • Partner 1 Ownership 711 Beach (45%)
• Partner 1 Draws
• Partner 1 Share of Profit/Loss

Great info @Dan V. Thanks for that explanation!  

I'll be working on QB tonight for a couple hours and surely have other questions I run into.  If I don't find an answer online, I'll post it here. Thanks again for everybody's helpful advice!

@Gita Faust

- are you one of the partner?  Yes one of the three partners, all family members. 

- what is your position in the business?  I run the business and handle the bookkeeping.

- do you rent or flip?  Purely flip, most within 3 - 6 months.

- when did you purchase your first property?  2011 for this particular partnership.

- did you sell a property yet?  Selling our 14th property as a partnership (many more prior to 2011 as an individual investor) 

- did you create your chart of accounts?  Yes and optimizing it as I learn.

- did you set up your file?  As of two week ago.

- as you entered your property - are your reports accurate?  I hope so! Still in the learning phase, but I'll get it.  I have all our bookkeeping in Excel but want to transition to QB to simplify our bookkeeping.

Thanks for any advice you can provide. I'm learning QB by reading these forums and learning from other people's questions, so hopefully the questions I ask here will be helpful to others learning as well.  

And in addition to the Earnings / Profit equity account for each partner, should there also be an equity account for each partner where I keep track of general expenses. If not, then where do I post expenses for each partner?

Partner 1 Equity

• Partner 1 Investments
• Partner 1 Draws
• Partner 1 Earnings / Profit
• Partner 1 Expenses

Partner 2 Equity

• Partner 2 Investments
• Partner 2 Draws
• Partner 2 Earnings / Profit
• Partner 2 Expenses

As you can see, I’m a complete QuickBooks novice trying to figure this out as I go…

Thanks @Gita Faust and @Simon W. for the helpful info.

Of all the online research and reading I've done, I've haven't seen anyone include the Profit / Earnings in the chart of accounts for each partner. Without it there, generally where would you list the Profit /Earnings for each partner?

Additional question:

What’s the best way to keep track of general expenses that would need to be split between the three partners? Should I assign them as a class or a job? I want to keep track of expenses so that at the end of the year or however often, I can split up those expenses between each partner? I already keep track of property specific expenses by class. Do I also create a class called General Expenses.  As I'm writing this, I think I answered my own question, but just want to double check. Thanks!

I would appreciate if someone can list out the steps to post the profit on the property sale to each of the three partners equity account. What is the best way of doing this? I'm a little confused with this step, thanks!