[GNC] Real Estate property-segregated costs tracking

Michael or Penny Novack stepbystepfarm at comcast.net
Tue Dec 28 10:45:30 EST 2021


On 12/27/2021 10:26 PM, Juan F. Saa wrote:
> Does anyone use GnuCash to keep track of wholesaling/flipping of Real
> Estate properties?
>
> In Quickbooks this is done by entering each property as a 'class', as
> described here

That's an "add on" to standard double entry bookkeeping. Standard double 
entry bookkeeping allows just ONE hierarchy for the CaO.

BUT --- if it really important to be able to associate expenses (and 
income) with a particular project, if you are needing reports based on 
that to be easy vs reports that group expenses, you CAN set up your CoA 
to accomplish that. It's your choice.

The key thing to understand is that the only real difference between the 
"temporary" accounts we call "expense" and "income" is that the balances 
of the former are usually debit while the latter normally credit, and 
that gnucash provides a report that groups them that way (all the 
incomes together, all the expenses together. If you are not required to 
report that way, can afford to make THAT harder .....

You can instead group by "house" )project) in the chart of accounts, say 
under "income". Then the expenses of that project will be contra 
accounts (accounts whose "type" will be "income" but whose balances are 
debit. Now you can run a report that will show you the profit (say 
rental income minus all expenses) for THAT house in the Income and 
Expenses report.

You can also use the standard structure and run a report for each house 
by selecting just the accounts belonging to that house. Understand, what 
Quickbooks was doing was allowing you to set up for that in advance ( 
the selection criteria; just report on THAT "class")

Michael D Novack






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