I flip houses. When I renovate the house the expenses are capitalized. Can the project module track the rehab budgets even though the costs are on the balance sheet?

Yes, you can use the project tracking module in QBO to make sure your capitalized rehab costs will track against project budgets, @jscotthfm.

To do this, toggle on project tracking in your QBO account. Then, the main thing to ensure is when you create bills or checks for rehab expenses and categorize them to the 'Construction in Progress' account, ensure you're tagging them with a Customer/Project in the transaction. 

This way, those amounts should already be flowing into your Project tracking. Then, you can generate reports like Estimates vs. Actuals within the project module. Refer to this article for available project reports in QBO: Use reports to track your project profitability and progress.

If your current rehab budget setup is in the budgeting tool (under the Gear Icon > Budgeting), you’ll need to run a separate Budget vs. Actuals report for the budget you've created. Unfortunately, project-tagged balances don’t automatically integrate into budget tracking, so combining data outside QBO may be necessary. For example, you can export the Balance Sheet report filtered by Project to ensure you’re still reviewing the capitalized costs. Here's how:

1. Go to Reports. Then, select Standard reports.
2. Choose the Balance Sheet report.
3. Click the Filter tab, then follow these filters:
   • Customer > equals > (place a checkmark for the project).

You can then export these reports to combine the data outside QBO.

Finally, I recommend working closely with your accountant or bookkeeper while implementing this workflow, particularly to confirm compliance with inventory accounting and nonprofit reporting standards.

If you need further clarification or assistance, feel free to let us know.