Accounting software for flipping houses

One of the biggest expenses when you’re flipping houses for profit is accounting software. When I bought my first few houses to renovate, I struggled with keeping track of all of my expenses. After a few months, I realized there was no way to write off some of these expenses which meant less money! Once I started using Quickbooks, things got much easier. That was several years ago and I still use Quickbooks every day to manage my business.

The right accounting software can have a huge impact on your business. It’s important to make sure you choose accounting software that fits the way you work rather than trying to adapt to an existing piece of software. Xero is an emerging leader in web-based small business accounting and is used by more than 120,000 businesses worldwide (including many serious investors who flip houses for a living). Let me show you how it works.

Flipping houses requires a lot of accounting. You need to track the time you’ve spent doing things like cleaning and painting, and you also need to know exactly how much you’ve spent on repairs and improvements. You’ll want to make sure that you know what your profit margin will be when it comes time to sell the house, too.

That’s where

can help. [Product name] is accounting software designed specifically for people who flip houses. It makes it easy to track all of your expenses and revenues, so that when it comes time to sell your house you know exactly what kind of profit margin you’re working with.

Flipping houses is a popular and lucrative way to make money. But it can be hard to keep track of all the expenses and revenue you bring in while you’re doing it, especially if you’re working with a large number of properties at once.

That’s where [accounting software name] comes in! We’re an accounting software specifically designed for flipping houses. Our company offers accounts payable and accounts receivable modules that can help you keep track of your cash flow, as well as inventory management features that let you keep an eye on the materials you’re using to flip houses. We also offer real estate transaction tracking features so that you can see all of your properties in one place.

We work with many different kinds of businesses, but we’re especially focused on businesses in the real estate industry—and we think that if you’ve got a lot of houses to flip, then our accounting software might be just what you need!

Accounting software for flipping houses

House Flipping

What a beautiful business, one that grows using someone else’s capital.

It doesn’t matter if you flip houses on the side or pursue real estate investment in a professional capacity. To run a profitable house flipping business, it pays to have reliable accounting software to keep your expenses in check and your financial house in order. 

The options open to the TurboCASH Accountant are wideopen. You can help clients by doing the numbers for them, while they do the hard work, help them put together financing while they do the hard work or jump in as the principle and employ people to do the hard work. OK – if you absolutley insist – do the hard work yourself and at least TurboCASH will minimize the accounting and reporting hassles.

Of course you could try to do everything in Microsoft Excel, but in the long run, that will end up wasting huge amounts of time that could be better spent analyzing your next flip or negotiating a better price with a key supplier. 

The alternative approach is to use tried and trusted accounting software that will save you time, without making a dent on your bottom line. By all accounts, that seems like the very definition of a win win. 

Why Is TurboCASH the Best Accounting Software for Flipping Houses

Apart from the fact that TurboCASH 4 has every accounting function you could possibly need to run a profitable house flipping business, it is also 100% FREE. 

To be more precise, with TurboCASH 4 you gain access to the following features: Invoices 
Credit Notes
Purchases
Supplier Returns
Quotes
Orders
Debtors
Creditors
Stock Items
Backup/Restore 

Key Expenses To Account For When Flipping A House

As a fix and flip investor, a detailed budget or investing plan is essential for preparing and managing expenses.. While many of the expenses associated with a flip will differ from property to property, there are set guidelines investors should use when setting up their own budgets to ensure their projects will be profitable. These are some of the most important expenses to account for when flipping a house: 

Purchase Price

There are various costs associated with flipping a house, starting with the purchase price. The purchase price of a property will make up the biggest portion of the investor’s budget. Fix and flip investors will use the 70% rule when measuring potential investment properties for profitability. The 70% rule dictates that investors should aim to pay 70% of the after repair value (ARV) of a property, subtracting the costs of rehabbing it.

The purchase price will also include some closing costs such as transfer taxes, property insurance and others.

Rehab Costs

The rehab costs of a fix and flip are the culmination of all the renovation costs associated with fixing up the property. These costs will include the cost of materials and labor, and the cost of installing new appliances for some. The rehab costs of a fix and flip project will largely depend on the condition of the property and the extent of repairs needed. When completed, these repairs add value to the property and make it more desirable to buyers or tenants.

For newer investors, it’s suggested to avoid properties needing extensive repairs and to invest in a turnkey home instead. Turnkey homes are properties that are ready to move into and require little extra effort from the investor.

Carrying Costs

Once the fix and flip investor has acquired a property, they will be responsible for the carrying costs. These are ongoing costs paid monthly by the investor while the property is in their possession, including financing repayments, insurance and property taxes to name a few. 

Other carrying costs like utilities will be especially important as these will be necessary for contractors to complete renovations. These costs altogether will have a significant impact on the investor’s bottom line. If the flip in question is for a rental property, the investor can also use the carrying costs to narrow down the amount of rent to set per month. The other good news is that many of the taxes investors are responsible for can be deducted.

Sales Costs

The last portion of the investor’s budget should include the marketing and sales costs. Unless the investor is acting as their own real estate agent, this will include real estate agent fees, marketing costs and closing costs. Real estate agent fees are commonly paid by the seller.

The marketing costs for a fix and flip will be any expenses associated with advertising the property listing, whether it be through fliers, online listings or open houses. The closing costs will include final expenses like outstanding property taxes, transfer taxes and any utilities left to settle.

Additional Accounting Tips For Real Estate Investors

Investors who have found potential fix and flip projects should make use of a deal analyzer or an ” ARV calculator to compare the numbers and find the most profitable property. Staying within budget is essential to maximizing the investor’s ROI, so it is important to set up a timeline and to stick to it, and to project costs as accurately as possible beforehand. 

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