Benefits for House Flippers

You improve business and maximize your bottom line when we help you:

• Organize your accounting software
• Record your flips in a tax-compliant manner
• Measure Return on Investment (ROI) on advertising so you can find the best deals
• Develop a custom process to make accurate remodeling cost estimates
• Differentiate your remodeling costs from your overhead costs
• Manage your cash flow

First Step to Improve Your Business

Arranging your accounting software to create accurate records is the key to unlock every other improvement. We’ll help you use your software to its greatest advantage so your information is accurate, accessible, and able to support every stage of the flip from purchase to the closing and its bankable profit!

Tax-Compliant Flip Records Minimize Tax Liability

Organizing your chart of accounts and having processes to correctly record your flips and remodeling costs as inventory, until they are sold or rented, will create tax-compliant books. You have a key tax advantage as a house flipper. You can claim the costs of remodeling as expenses.

We document your day-to-day transactions, keeping them current, reconciled, and always tax-ready. This will reduce your tax liability and filing costs, as well as tax-related anxieties.

Increase Advertising Effectiveness with ROI Measures

You know what you spent on advertising, but do you know what your sales were from a specific advertising campaign?

You’ll save money when we create a process to help you decide which advertising programs are delivering the best ROI for your business.

We’ll also document leads and sales you get from your prospecting tools. Then you can decide to invest in the strongest revenue generating products.

Maximize Your Bottom Line with Accurate Estimates

With your organized accounting system and the custom processes we create, you will track your estimated costs against actual costs. This will increase the accuracy of your estimates and allow you to keep up with rising costs.

Part of the process is using the Rule of 70% correctly.

• (After Repair Value [ARV] * 70%) – Estimated Repair Costs = Maximum Buying Price

You will use a worksheet we build that has your average actual costs broken down by room, project, and trade. This allows the systematization of estimated costs for renovating your investments.

Once you have an accurate way to calculate your remodeling costs, we will help you differentiate your direct costs from your indirect costs. Then you can determine how much of the overhead needs to be paid by each job.

By knowing the difference between remodeling and overhead costs, and generating more accurate estimates, you will be able to choose the most profitable projects. This greatly improves your bottom line.

Cash Flow is Vital

Cash flow during a remodeling project can be complex if you don’t have the right oversight in place. Everything in this list allows you to manage your cash flow more effectively. And we both know cash flow is the life blood of flipping.

Want to make the profits your hard work deserves?
Main Street Ledger is here to help.

Send us an email to get *your* accounting edge and take your business to the next level.