We are merging 2 different development companies. How do we enter in the Costs from 2002 into 2003 so the total costs for the building of the home will show on the P&L and other reports? Right now it has been entered in as a Journal Entry but I do not think that the accounts we are using are correct. Also, is there anyone who has had to record closing statements? Those are sending us for a loop as well, it's definitely throwing off the balance sheet.
Help!
If the 2002 cost are in a QuickBooks file, you can use my Data Transfer Utility to transfer those transactions into the QuickBooks file with your 2003 transactions in it. For more information, see www.q2q.us
In real estate development you have to accumulate all your costs (capitalize) till you sell the property and then you can claim the expenses. That's why your Work In Process account is an other current asset type account till the property is sold. When the property is sold you have to record the sale of the property into a construction income type account. You record the paying off of the construction loan. You need to account for the closing costs on the sale. And you need to transfer the Work in Process accounts to the Cost of Goods Sold account. There is a book you really need to get that explains all this. It's called Contractor's Guide to QuickBooks Pro and it's written by Karen Mitchell and Craig Savage and can be found at this link and purchased there: http://www.nwbuildnet.com/stores/ss/qbp_cg.html#cd There is a book written for every version. You really need to get it. There is a whole chapter on real estate development that covers all the info you need to record your closing costs and construction draws, etc.. The rest of the book is on how to best use the Qb program for construction accounting and job costing. I think this book is a must for anyone in this business. There is also a website with a message board just for the construction industry. Here's the link: http://www.jlconline.com/cgi-bin/jlconline.storefront/3e3cdd32009bcdd7271a401e1d290633/Catalog/1141?
