How Real Estate Agents Should Track Commissions and Expenses
Selling homes might be exciting-but handling your books probably isn’t. Between commission checks, marketing costs, mileage, and referral splits, real estate finances are messy if you’re not tracking them right.
Download Our Free Brochure →In this guide, we’ll break down what real estate agents should be tracking-and how smart bookkeeping can save you stress (and taxes).
1. Track Commissions by Property and Close Date
Every deal closed should have:
- Property address
- Gross commission
- Broker split or team percentage
- Net payout to you
- Date received
Why it matters: This helps reconcile deposits and gives you accurate monthly income for taxes or pre-approvals.
2. Record Brokerage Splits and Referral Fees
If you’re splitting deals with:
- A broker
- Another agent
- A team member
…track it! Record both the gross and your net share.
Related: Bookkeeping for Real Estate Agents
3. Log Tax-Deductible Business Expenses
These may include:
- MLS fees and real estate board dues
- Client gifts and meals
- Staging or signage costs
- Gas and mileage (with a mileage log)
- Advertising (Zillow, Facebook, etc.)
- Office expenses (printer, laptop, software)
Why it matters: Organized expenses = more deductions and lower taxable income.
Download Our Free Brochure →4. Don’t Forget Estimated Taxes and Retirement Contributions
Quarterly tax payments and SEP IRA contributions should be tracked separately from business expenses-but your books should show the cash flow.
5. Automate It or Outsource It
Most successful agents outsource their bookkeeping for one simple reason: Time.
You could spend 6–8 hours a month reconciling, categorizing, and logging paperwork-or you could focus on leads, showings, and closing more deals.
Explore:
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Top States in Real Estate Bookkeeping
Businesses are choosing Real Estate Bookkeeping in high-demand States like:
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Conclusion: Good Books = Bigger Deductions & Better Business Decisions
Clean books don’t just make tax time easier-they help you understand your income, save for slow months, and look more legit to lenders or partners.
Call to Action:
Bookkeeping That Tracks Every Deal.
We reconcile commissions, split payments, and track your expenses so your books are always audit-safe-and you stay focused on selling.
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You may also like:
- 5 Essential Bookkeeping Tips for Real Estate Agents and Property Managers
- Bookkeeping for Real Estate Agents and Brokerages
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