Real Estate Accounting- Flips on your P&L or Balance Sheet (Part 1)
In this episode, Nick Baldo introduces QuickBooks online for real estate investing, overviews Real Estate Accounting Boot Camp, and discusses the treatment of expenses on property flips. He dives into QuickBooks Projects and Classes, analyzes property on a profit and loss level, and walks listeners through recording various costs. He also talks about balancing the balance sheet, benefits of tracking by class and customer, and planning for the next financial year and sales strategy.
Key Points
- QuickBooks Online's Projects feature allows real estate investors to track flip property expenses and revenue on a Profit and Loss statement, which can be transferred to a Balance Sheet for accurate year-end tax preparation or financial reporting.
- Using journal entries in QuickBooks Online, investors can manage major transactions, such as property purchases or sales, and ensure accurate allocation of costs and loan payments to the appropriate accounts for clear financial oversight.
- Regularly transferring incurred flip property expenses from the Profit and Loss statement to the Balance Sheet throughout the year can provide a more realistic view of a business's financial health, while still maintaining detailed project-level expense tracking.
End-to-End Accounting Course: https://www.incomedigs.com/reab (Enter Code YOUTUBE50 for $50 off!) Free QBO MiniCamp: https://bit.ly/3uNlesQ Free Download: https://www.incomedigs.com/chart-of-accounts Rehab Property Analyzer: hhttps://www.incomedigs.com/rehab-property-analyzer Website: http://www.incomedigs.com
It's a common debate: Should I put my flips on my Balance Sheet or P&L? It Depends! I'll walk you through how to do both and how to transfer between the two. (Part II coming in 1 week!)
Chapters
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Transcript
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