Bookkeeping for Real Estate Agents: A Plain Guide to Commissions, Expenses and Monthly Books
Commissions arrive in lumps, expenses don't stop, and tax time comes either way. Clean monthly books make all three easier to manage.
This guide covers bookkeeping for real estate agents: what to track, how to keep it organized and when to hand it off. It's general guidance, not tax advice.
Step 1: Separate business and personal money
Open a business checking account and a card used only for business. Mixed accounts are the most common cause of messy books.
Step 2: Record every commission
Record the gross commission, then any brokerage split or fees, so you can see what you actually kept. Keep the closing or commission statement with each deposit.
Step 3: Track the expenses agents commonly have
- Brokerage, desk or franchise fees
- MLS and association dues
- Marketing, signs and listing photos
- Mileage and vehicle costs
- Phone, software and website
- Continuing education and license renewals
Ask your tax professional which ones apply to you. See tax deductions small business owners miss.
Step 4: Use a clear chart of accounts
Group income and expenses in categories that match how you work. See chart of accounts for a small business and how to categorize business transactions.
Step 5: Reconcile every month
Match your books to your bank and card statements each month, so a missing commission or a duplicate charge shows up early. See how to reconcile a bank account and the month-end close checklist.
Step 6: Plan for uneven income
A slow quarter is easier to handle when you can see the trend. A monthly Profit & Loss shows what's coming in and going out while there's still time to adjust.
When to hand it off
If you're behind, start with a Books Clean-Up. If you're current but short on time, monthly bookkeeping keeps it that way.
Linked-do-Books™ is a 100% remote, nationwide bookkeeping practice for service businesses. Each month we categorize transactions, reconcile bank and credit-card accounts, and send your reports with a short plain-language note about what changed. See bookkeeping for service businesses and pricing.
Tax preparation and tax advice are outside our bookkeeping scope. Work with your tax professional for those.
Not sure where to start? Try the free bookkeeping health score or contact us.
FAQ
Do real estate agents need a bookkeeper?
Not always. If you're behind or spending hours each month on it, help can pay for itself in time.
Should I record gross or net commission?
Record the gross and the split or fees separately, so your reports show both.
Can you do my taxes?
No. Tax preparation is outside our bookkeeping scope. Clean books make your tax professional's job easier.