10 Best Accounting Software for Flipping Houses (2023)

Successfully flipping houses requires tracking myriad expenses from renovation costs to holding fees in order to accurately calculate profit margins. However, traditional accounting methods can fall short in handling the unique workflows and costs associated with real estate investing. The right software provides the job costing, contractor payments, milestone tracking, and reporting needed to keep house flipping finances organized and optimized.

This post explores 10 leading accounting solutions for house flippers based on managing construction projects, contractor payments, integrations, mobility, analytics, and overall value maximizing profit across flips. Any real estate investors can leverage these platforms to gain financial clarity and efficiency.

Best Accounting Software for Flipping Houses

Here is a table summarizing the pros and cons of the top accounting software options for house flipping businesses:

Software	Pros	Cons
QuickBooks Online	Popular accounting platform; useful for basic tracking	Lacks detailed construction project costing
Buildertrend	Unified with construction management; draws and payables	Fullest capabilities require subscription upsell
Sage Intacct	Advanced job costing; tailored contracting features	Overkill for basic accounting needs; expensive
JOBPOWER	Specialized for renovations; integrated payments	Potentially too lightweight for large portfolios
Buildium	Real estate investment focused; property management	Limited customization compared to pure accounting software
Procore	Robust project cost and contractor management	High learning curve and cost; overbuilt for simple flips
Odoo	Open source; diverse real estate and construction apps	Requires integrating various modules
Corelytics	Focused on flip analytics more than accounting	Does not support actual accounting workflows
Archdesk	Streamlined document storage with cost tracking	Very lightweight accounting capabilities
Avatia CAMS	Job costing and contractor payment tools	Made for field services; lacks accounting depth

QuickBooks Online

QuickBooks Online provides one of the most popular general accounting systems suitable for house flipping businesses. It delivers core accounting like invoicing, accounts payable, reporting, and bank reconciliation. QuickBooks Online Advanced provides class tracking to assign expenses to specific flips.

Integrated payments simplify contractor payouts. QuickBooks simplifies creating invoices for draws and milestones. Robust reporting provides profitability insights. While a general solution, QuickBooks Online contains the essentials flippers need to manage their numbers and maximize profits.

Buildertrend

Buildertrend specializes in home builder software but provides capable accounting tools for flippers integrated with construction management. Its financial features include draws, payables, change orders, lien waivers, budgets, and reports. Payments to vendors and contractors happen directly in the software.

The unified platform centralizes all project and cost details. Dashboards spotlight budgets vs. actuals and completion progress to aid decisions and forecasting. Buildertrend provides excellent accounting visibility tailored for construction and renovation scenarios common in flips.

Sage Intacct

Sage Intacct delivers heavy-duty accounting designed for construction and contracting firms. For flippers, it enables custom tracking of project phases and cost milestones in detail. Intacct automates complex job costing and contractor payables across multiple entities and locations.

Rich construction-focused reporting provides profitability analysis of every project. Under and over-billed flags prevent missed charges or wasteful overages. Scalability accommodates any size portfolio. While Intacct offers advanced capabilities beyond basic accounting, its construction-centric DNA provides purpose-built financial oversight for flips.

JOBPOWER

JOBPOWER provides an all-in-one project management and accounting solution tailored for renovation contractors and house flippers. Financial tools support detailed job costing, contractor payment draws and payables, change orders, lien waivers, and invoicing. Integrated bank feeds facilitate payment tracking.

Custom fields and columns enable capturing key flipping metrics like ARV, profit, days on market, etc. The unified data and dashboard visibility aid property analytics and decisions. JOBPOWER delivers robust accounting and operational efficiency ideal for both individual and scaled flipping businesses.

Buildium

Real estate management platform Buildium offers integrated accounting capabilities like accounts payable, recurring invoices, budgets, and consolidated reporting across properties. Construction features assist tracking rehab projects while property management handles ongoing expenses.

Buildium simplifies contractor payouts. Custom fields capture flipping metrics. Detailed accounting reports provide renovation profitability analysis. Lead tracking, tenant screening, and maintenance further aid rental and fix-and-flip management. For comprehensive flipping accounting and operations, Buildium warrants consideration.

Procore

Construction project management giant Procore provides specialized financial tools for builders that translate well to house flipping scenarios. Comprehensive job cost tracking and management provide real-time budgets vs. actuals. Automated payroll simplifies paying contractors.

Procore facilitates draw requests, change orders, compliance, and lien waivers. Integration with accounting systems like QuickBooks centralizes data. Robust real-time reporting furnishes cost details and insights. Procore requires heavy investment but delivers elite project financial oversight.

Odoo

Odoo delivers an open-source ERP with construction project and accounting tools well-suited for house flipping businesses. Its job costing and vendor payment tracking provide financial control and visibility. Odoo supports change orders and subcontractor management.

Integrated CRM, sales, inventory, purchasing enable process automation from bid to sale. Several apps extend functionality for construction and real estate. As an affordable open-source option, Odoo provides under one umbrella the diverse tools flippers need for smooth operations and accounting.

Corelytics

Corelytics provides analytics software focused on helping investors identify and manage profitable flips. Users can track all costs, draw schedules, ARV calculations, and contractor payments for accurate modeling. Proforma reporting forecasts profit potential on pipeline deals.

Portfolio views highlight successful parameters to guide future flip targeting. Document management retains invoices and draw schedules. Corelytics focuses on actionable analytics rather than general accounting but provides invaluable data to maximize flip ROI.

Archdesk

Archdesk offers streamlined real estate investor software combining document storage with project cost tracking. Users can allocate invoices, bids, Bills of Sale and other financial data to specific properties. This centralization provides fast access and organization.

Milestones track rehab progress while recording expenses. Built-in calculators assist with key flip metrics like ARV, 70% rule, and profit. File cabinets store documents like permits and inspections. For independent investors, Archdesk provides an easy way to organize flipping finances.

Avatia CAMS

Computer Accounting & Management for Service (CAMS) by Avatia delivers field service-centric accounting capability. Though designed for contractors, CAMS enables detailed cost tracking and job costing ideal for renovations. It facilitates paying contractors from specific cost milestones and jobs.

Change requests and lien waivers manage subcontractors smoothly. Timesheets capture labor costs accurately. CAMS Reporting provides insights into job and company financials. While service-focused, CAMS provides solid accounting tools applicable for house flipping needs.

FAQs

Can you use QuickBooks for house-flipping? Yes, QuickBooks can be used for house-flipping as it is a versatile accounting software that can help you track income, expenses, and financial transactions associated with your house-flipping business.

What is the 70% rule in house-flipping? The 70% rule in house-flipping is a guideline that suggests you should not pay more than 70% of the after-repair value (ARV) of a property, minus the repair costs. It helps investors ensure they have a sufficient margin for profit.

What business entity is best for flipping houses? The best business entity for flipping houses can vary based on individual circumstances, but many real estate investors use a limited liability company (LLC) or a corporation (such as an S Corporation or C Corporation) to protect personal assets and gain tax advantages.

What is the best tax structure for flipping houses? The best tax structure for flipping houses may involve forming an LLC or using a corporation, as mentioned earlier. Consulting with a tax professional can help you determine the most advantageous tax structure for your specific situation.

How do you record a house flip? Recording a house flip involves maintaining detailed financial records of all expenses, income, and transactions related to the property. You can use accounting software like QuickBooks to help with this.

Does flipping a house count as income? Yes, the profit you make from flipping a house is typically considered income and may be subject to income tax. However, tax laws and rates can vary, so consult a tax professional for specific guidance.

What are red flags for house flipping? Red flags in house flipping may include buying a property without a thorough inspection, underestimating repair costs, miscalculating the ARV, relying on overly optimistic market projections, or failing to have a solid exit strategy.

Why is house flipping illegal? House flipping itself is not illegal. However, illegal activities such as fraud, misrepresentation, or failing to comply with housing laws can lead to legal issues in the house-flipping business.

How do I avoid capital gains tax on a flip? One way to potentially avoid or reduce capital gains tax on a flip is to hold the property for at least one year, as this may qualify you for long-term capital gains rates, which are typically lower than short-term rates. Consult a tax professional for more strategies.

What is the average salary of a house flipper? The average salary of a house flipper can vary significantly based on location, experience, and the number of flips completed. Some experienced flippers may earn six-figure incomes, while others may earn less.

What is a good profit margin on flipping a house? A good profit margin on flipping a house can vary but is often considered to be around 10% to 20% of the after-repair value (ARV) of the property, after accounting for all costs.

Is flipping houses passive income? Flipping houses is generally not considered passive income because it typically requires active involvement in finding, purchasing, renovating, and selling properties.

Can I deduct utilities when flipping a house? Utilities used during the renovation or holding period of a flip property may be deductible as business expenses. Consult with a tax professional for specific guidance.

Can you write off renovations on a flip house? Renovation expenses on a flip house are typically deductible as business expenses, reducing the overall taxable income from the flip.

Is S Corp good for flipping houses? An S Corporation can be a suitable entity for flipping houses, offering potential tax advantages and liability protection. However, the best choice depends on your specific circumstances and goals.

How do you structure a house flip business? Structuring a house flip business involves selecting a legal entity (e.g., LLC or corporation), obtaining necessary licenses and permits, setting up business bank accounts, and developing a business plan.

How do you calculate profit on a house flip? To calculate profit on a house flip, subtract the total acquisition cost (purchase price, closing costs, and renovation expenses) from the selling price. This calculation gives you the gross profit.

Is QuickBooks good for real estate agents? Yes, QuickBooks can be useful for real estate agents to track income, expenses, and manage finances related to their real estate transactions.

Is house flipping a side hustle? House flipping can be a side hustle for some individuals who have other primary sources of income but engage in real estate investment on the side.

Is flipping houses a good side hustle? Flipping houses can be a profitable side hustle, but it requires careful planning, real estate knowledge, and financial resources.

What is the hardest part of flipping a house? The hardest part of flipping a house can vary for each project, but common challenges include accurately estimating renovation costs, managing the timeline, and dealing with unexpected issues that may arise during the process.

What is the expected ROI on flipping houses? The expected return on investment (ROI) for flipping houses can also vary widely, but many investors aim for an ROI of 10% to 20% or more of the total investment.

How can you tell if someone is flipping a house? You can often tell if someone is flipping a house by looking for signs of renovation or remodeling, listings on real estate websites, or by checking public records for recent property purchases.

What is micro flipping real estate? Micro flipping is a real estate investment strategy that involves quickly buying and selling properties, often without extensive renovations. It typically focuses on lower-priced properties.

Is flipping houses capital gains? Profits from flipping houses are typically considered capital gains, but whether they are taxed as short-term or long-term capital gains depends on how long you hold the property before selling it.

How long should a house flip take? The duration of a house flip can vary widely, but it often takes several months to a year or more, depending on the extent of renovations and market conditions.

What is the 90-day flip rule in real estate? The 90-day flip rule is a guideline that some lenders follow, which restricts the resale of a property within 90 days of purchase if the buyer is using certain types of financing.

What is the capital gains tax rate for 2023? The capital gains tax rate for 2023 may vary depending on your income and other factors. Consult a tax professional or refer to the latest tax laws for the most accurate information.

Is it a good time to flip houses in 2023? The profitability of flipping houses in 2023 can depend on various factors, including the local real estate market conditions and economic trends. Conduct thorough research before starting any flipping projects.

Who is the most famous house flipper? There have been several famous house flippers, including real estate TV personalities like Chip and Joanna Gaines from “Fixer Upper” and Tarek El Moussa and Christina Anstead from “Flip or Flop.”

Can you flip a house with 10k? Flipping a house with only $10,000 is challenging and may require creative financing or partnerships. In most cases, more substantial capital is needed for purchasing and renovating a property.

What is the 70 rule? The 70% rule in house-flipping suggests that you should not pay more than 70% of the after-repair value (ARV) of a property, minus the repair costs.

How much capital do you need to start flipping houses? The amount of capital needed to start flipping houses can vary widely based on location, property prices, and renovation costs. It’s advisable to have a significant amount of capital or access to financing for a successful house-flipping venture.

Can you make a million dollars a year flipping houses? It is possible to make a million dollars a year flipping houses, but it requires significant experience, capital, and successful projects. It’s not guaranteed and carries risks.

Can you still make money flipping houses in 2023? Whether you can make money flipping houses in 2023 depends on various factors, including market conditions, location, and your skills and resources. Successful house flipping is still possible, but it may be more challenging in certain markets.

What is the Brrrr method? The BRRRR method stands for Buy, Rehab, Rent, Refinance, and Repeat. It’s a real estate investment strategy that involves purchasing properties, renovating them, renting them out, refinancing to recover the invested capital, and then repeating the process with the same funds.

Is a flip considered an investment property? Yes, a flip is typically considered an investment property because it involves purchasing a property with the intention of selling it for a profit after making improvements.

Can you write off remodeling expenses? Remodeling expenses on a property used for flipping can often be deducted as business expenses, which can reduce your taxable income.

Can you flip a house and live in it? While it’s possible to live in a house you’re flipping, it may affect your ability to claim certain tax benefits and deductions, as well as the classification of the property for capital gains tax purposes. Consult with a tax professional for guidance.

Conclusion

Accurately tracking the myriad costs of flipping houses requires accounting software tailored to construction projects and contractor payments. Solutions like QuickBooks Online, JOBPOWER, and Procore provide functionality purpose-built for real estate investing. Open source platforms like Odoo also offer affordable alternatives. Any house flipper should adopt accounting technology specialized to maximize their financial performance.