Business renovation

@Tammy024 

Leasehold improvements are fixed assets.  I would create a fixed asset account called 'Leasehold Improvements for Project XYZ' and sub-categories such as flooring, signage, HVAC, etc. and assign the contractor's bills to the appropriate sub-category.  I would strongly suggest contacting your CPA before getting too deep.  Some leasehold improvements can be expensed immediately and some need to be amortized.  Make sure your CPA has a firm understanding of leasehold improvements.  The tax treatment of leasehold improvements varies widely depending on the nature of them.  There are a lot of rules - "qualified improvements", etc.  I have personally been bit by a CPA that did not understand leasehold improvements and the errors were expensive.