Real estate businesses and agents must track their finances, just like any other business. Some tasks that are included in keeping the books for a real estate agent are tracking commission, tracking expenses and profits, and preparing financial reports. Understanding your profitability and cash flow is extremely important for real estate agents.
What is unique about real estate accounting?
Real estate accounting includes tracking sales, commission, interest, advertising expenses, salaries/wages, education expenses, and even things like tracking mileage. All of this information, and more, needs to be recorded and organized to prepare financial reports, to be sure you are in compliance, and ready for tax time.