Accounting for Spec House in QuickBooks
The best way to do this is to use items that point to a WIP account on the balance sheet instead of an expense account. You can do the same thing using the expense tab instead of items, but I find using items gives you better information.
When you sell the home, you’ll need to prepare a journal entry to expense the WIP associated with that home off the balance sheet and onto the P&L.
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