How to account for building a house

st_6872571 Member Posts: 79
Ok, using Reckon Personal Accounts.   How would most account for going through the process of building a house?

We bought land and the land is an Asset Account, so far, so good.

We are about to contract a builder to build our house on the land.   What is the best way to account for all the payments?

Here is my thought process.   At the end of the build, there will be a house and land Asset account.   During the course of the build I'm thinking of creating an Asset account, name it in the builders name, and all payments to the builder at various stages, (Plans, Slab, Framing, etc.) to be transferred into the Asset Account in the builders name.   At the end of the process that Asset should be transferred into the Land Asset Account and that should equate to the value of the existing house and land, then, of course, adding appreciation or depreciation to correctly reflect the value.

My question is, is there another way to do this?


  • st_6872571
    st_6872571 Member Posts: 79
    edited March 2019
    Thanks for the replies, appreciated.