Real Estate Accounting – Case Study 1 LTR
Client Profile
In this Real Estate Accounting Case Study, VRSapients partnered with a US-based real estate fix-and-flip investor actively involved in residential property acquisitions, renovations, and resales across multiple states.
The client operated multiple flip projects simultaneously, working with contractors, lenders, and real estate agents. While deal volume increased, the client struggled to track project-wise costs, lender draws, and true profitability per flip.
Due to the absence of structured construction accounting and job costing, financial data lacked clarity, making it difficult to evaluate ROI on individual projects. The client approached VRSapients to implement a robust accounting system that could support accurate project tracking and scalable growth.
Overview
The client required a complete clean-up and reorganization of QuickBooks Online to correct historical inaccuracies and align the books with fix-and-flip accounting best practices.
They also needed ongoing monthly bookkeeping, including job costing, lender draw tracking, and profitability analysis for each property under renovation.
The primary objective was to establish a project-based Real Estate Accounting framework that delivered accurate cost tracking, timely financial reports, and reliable data for decision-making — while reducing CPA involvement during tax season.
Challenges
Before working with VRSapients, the client faced multiple accounting and reporting challenges:
No proper job costing system to track renovation expenses per property
Inability to separate capitalizable costs vs operating expenses
Difficulty tracking hard money loans, interest, and lender draws
Contractor payments recorded inconsistently, leading to reporting gaps
No clear visibility into true profit per flip
Delays in preparing books for CPA review and tax filings
These challenges made it difficult for the client to assess deal performance, manage cash flow efficiently, and scale operations with confidence.
Solutions Implemented by VRSapients
VRSapients implemented a tailored Fix & Flip Real Estate Accounting solution, focused on accuracy, structure, and scalability.
1. Business & Project Assessment
We reviewed the client’s flip strategy, funding structure, and renovation workflows to identify the correct accounting treatment for acquisition costs, rehab expenses, and financing charges.
2. QuickBooks Job Costing Setup
We restructured QuickBooks Online using Classes and Projects to track each flip property separately. This allowed precise allocation of material costs, labor, permits, and professional fees.
3. Historical Clean-Up & Reconciliation
Our team cleaned up past transactions, corrected misclassifications, and reconciled bank and credit card accounts to ensure accurate opening balances for each project.
4. Lender & Draw Tracking
We set up systems to track loan proceeds, draw requests, interest accruals, and repayments, ensuring accurate reporting of financing costs and outstanding liabilities.
5. Monthly Reporting & Reviews
We implemented a standardized month-end process and conducted monthly review meetings to provide:
Project-wise cost reports
Budget vs actual analysis
Estimated profit per flip
Cash flow visibility across active projects
Key Achievements
The results of VRSapients’ Real Estate Accounting Services delivered immediate value:
Accurate Job Costing: Complete visibility into renovation spend per property
Improved Profit Analysis: Clear understanding of ROI for each completed flip
Better Cash Flow Control: Real-time tracking of loan funds and renovation costs
Reduced CPA Time: Clean, organized books simplified tax preparation
Scalable Structure: Easy onboarding of new flip projects without accounting chaos
Time Savings: Reduced manual tracking and spreadsheet dependency
The client gained confidence in evaluating deals quickly and scaling their fix-and-flip portfolio.
Conclusion
This Real Estate Accounting Case Study highlights how VRSapients helps fix-and-flip investors gain control over complex project-based finances.
By implementing structured job costing, optimizing QuickBooks Online, and delivering actionable financial insights, VRSapients enabled the client to improve profitability, maintain compliance, and scale operations with clarity.
Today, the client benefits from accurate project-level reporting, streamlined month-end processes, and a scalable accounting system built specifically for real estate investors focused on renovations and resale.