Budgeting and tracking a kitchen remodel

We are about to set out on a kitchen remodel: have a bid for cabinets and installation from a general contractor, a quote for appliances, etc. I thought about using a spreadsheet and then realized that Quicken should be able to do this.

What's the best way to track all this? Ideally, I'd like to create something like a virtual account, enter the costs into that and update them with transfers from the payment account as checks are issued.

I searched Quicken help and the community without success, so this is either so obvious that I'm missing it, since I'm sure I'm not the first.

I do have the Quicken Home, Business and Rental Property version, if that matters.

Best Answers

  • Uwe Baemayr
    Uwe Baemayr Member ✭✭
    edited November 2020 Accepted Answer
    Thanks! I did consider those, and have properly tagged and categorized the appliances and fixtures I already bought.

    I need to somehow track the expenses I have for the appliances and fixtures, along with labor estimates, and also enter expenses that haven't occurred yet, like the cost of appliances ordered with a deposit, but the balance due in the future so I know how much cash I'll need and at what time.

    As a test, I created a separate "asset" account named [Kitchen Remodel] and found the past transactions in various checking and credit card accounts. I changed the category of those to be a transfer into the [Kitchen Remodel]

    What I already paid is recorded as a transfer from the payment account (checking, credit card) that I used to make the payment, and what's due in the future I entered as a transfer to/from the same [Kitchen Remodel] account around the time it's due. So the balance increases but it doesn't affect any real accounts.

    This seems to have worked -- the balance in the [Kitchen Remodel] asset account is the amount I will have paid up to that date along with a description of each line item. When I write the check or make the charge, I can replace each line item with a transfer from the appropriate account.

    I went ahead and entered everything I know about, and of course, it's more than the amount I was anticipating. But I'm now at least prepared for it.

    I was also able to add a "Notes" column (the memo contains a description of the item) and it looks like I can attach invoices, receipts, and maybe even PDF user guides to each line item.

    I think this will work. Thanks for the ideas!
  • YingDave
    YingDave Member ✭✭✭✭
    edited December 2020 Accepted Answer
    In my renovation several years ago, every transaction for bits and pieces + builders progress payments I entered as transfers to to my house asset account. You will already likely have an asset account set up for your property if you set up a loan. Future payments where set up as scheduled transfers (in Bills section) to the asset account. This is basically the same as your [Kitchen Remodal] account, but there is no need to have a separate account from the main asset.

    Not just kitchen renovation but any capital improvement gets treated as a transfer to asset account instead of an expense that needs a category. Therefore it raises the cost base of your home asset (loan stays the same). This is in line with an accounting view of how it would work.

    Every now and then when updating the value of my home asset I take the market value and subtract cost base at that time of that valuation and enter a (hopefully) positive number as Unrealised gain category = "_UnrlzdGain". When you run an asset report on your property account you can see market value, or if you untick the report setting "Include Realized Gains" then the report gives you the cost base not the market value.

Answers

  • Uwe Baemayr
    Uwe Baemayr Member ✭✭
    edited November 2020 Accepted Answer
    Thanks! I did consider those, and have properly tagged and categorized the appliances and fixtures I already bought.

    I need to somehow track the expenses I have for the appliances and fixtures, along with labor estimates, and also enter expenses that haven't occurred yet, like the cost of appliances ordered with a deposit, but the balance due in the future so I know how much cash I'll need and at what time.

    As a test, I created a separate "asset" account named [Kitchen Remodel] and found the past transactions in various checking and credit card accounts. I changed the category of those to be a transfer into the [Kitchen Remodel]

    What I already paid is recorded as a transfer from the payment account (checking, credit card) that I used to make the payment, and what's due in the future I entered as a transfer to/from the same [Kitchen Remodel] account around the time it's due. So the balance increases but it doesn't affect any real accounts.

    This seems to have worked -- the balance in the [Kitchen Remodel] asset account is the amount I will have paid up to that date along with a description of each line item. When I write the check or make the charge, I can replace each line item with a transfer from the appropriate account.

    I went ahead and entered everything I know about, and of course, it's more than the amount I was anticipating. But I'm now at least prepared for it.

    I was also able to add a "Notes" column (the memo contains a description of the item) and it looks like I can attach invoices, receipts, and maybe even PDF user guides to each line item.

    I think this will work. Thanks for the ideas!
  • YingDave
    YingDave Member ✭✭✭✭
    edited December 2020 Accepted Answer
    In my renovation several years ago, every transaction for bits and pieces + builders progress payments I entered as transfers to to my house asset account. You will already likely have an asset account set up for your property if you set up a loan. Future payments where set up as scheduled transfers (in Bills section) to the asset account. This is basically the same as your [Kitchen Remodal] account, but there is no need to have a separate account from the main asset.

    Not just kitchen renovation but any capital improvement gets treated as a transfer to asset account instead of an expense that needs a category. Therefore it raises the cost base of your home asset (loan stays the same). This is in line with an accounting view of how it would work.

    Every now and then when updating the value of my home asset I take the market value and subtract cost base at that time of that valuation and enter a (hopefully) positive number as Unrealised gain category = "_UnrlzdGain". When you run an asset report on your property account you can see market value, or if you untick the report setting "Include Realized Gains" then the report gives you the cost base not the market value.
  • Uwe Baemayr
    Uwe Baemayr Member ✭✭
    @YingDave: thanks! Didn't know about the "unrealized gain" trick. I'll check that out.
This discussion has been closed.