Bookkeeping for home builders
A home builder buys a lot, funds construction with a loan and draws, pays subcontractors in stages and gets paid at closing. Mispar tracks cost by house, records draws and interest against the right loan, and prepares monthly books in your own QuickBooks Online or Xero file. Revenue recognition choices are agreed with your CPA. Plans start at $229/mo.
Best for: Small spec home builders, custom home builders and builders who combine new construction with remodeling.
Tracked
Cost by house
Matched
Construction draws
By trade
Subcontractors
Recorded
Closings
Where home builder books usually go wrong
- Deposits and draws recorded as income before the work behind them is done.
- Lot, material and subcontractor costs not coded to the house they belong to.
- Construction loan interest and fees treated as general overhead instead of project cost.
- Change orders agreed in conversation and never billed.
How Mispar keeps your home builders books clean
Industry-specific accounts and categorization, with the reporting scope agreed before work starts.
Lot and land costs
Record the lot and site work against the house it will carry.
Construction loan draws and interest
Match each draw to the lender statement and keep interest against the right project.
Subcontractors by trade
Track framers, electricians, plumbers and others by house, with lien waivers and paperwork noted.
Materials and allowances
Match supplier invoices to the house and track buyer allowances against what was spent.
Deposits and closing proceeds
Hold deposits as owed until closing and record proceeds with the settlement statement.
Warranty reserves and callbacks
Track warranty costs by house after closing.
Permits, impact fees and inspections
Categorize permit and impact fees as costs of the specific house.
Spec versus contract homes
Keep spec homes and homes built for a buyer in separate accounts since their cash timing differs.
Soft costs and carrying costs
Track insurance, taxes and utilities carried during construction against the house.
Reports a home builder can use
- Cost to date versus budget for each house under construction.
- Draw schedule with amounts requested, received and still pending.
- Subcontractor payments and lien waivers by job.
- Cash outlook that lines up upcoming draws with material and payroll due dates.
A simple, predictable process
From kickoff to your first clean close, here is exactly what happens.
Map houses and loans
We list each house, its loan and how subs are paid.
Set up house-level tracking
Each house gets a tag for lot, construction and soft costs.
Reconcile each month
Draws, subcontractor payments, supplier bills and closing proceeds are matched to the bank and to the house.
Deliver monthly statements
Monthly statements arrive ready for your CPA with an open-items list.
Illustrative example
A builder closes on a house after nine months. With every lot, draw, sub and permit cost tagged to it, the settlement statement shows the full profit on that house, not an estimate. This is an illustration of the method, not a customer case or a guarantee.
Home Builders bookkeeping — your questions
Can you track cost by house?
Yes, when invoices and draws can be tied to a house by tag.
How are construction loan draws recorded?
Matched to the lender statement, with interest tracked by project.
What do you need each month to keep home builder books?
Draw statements, subcontractor invoices, supplier statements, settlement statements, payroll reports and access to your bank feeds.
Can you handle several houses at once?
Yes. Each house is its own tag.
Who decides revenue recognition?
Your CPA. We record it as they direct.
Can you separate spec and contract homes?
Yes. They are tracked as separate lines.
Can you track each house as its own job?
Yes. Every house gets its own job code, so costs, draws and profit are visible per home.
Can you track carrying costs?
Yes. Taxes, insurance and utilities are tagged to the house.
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