How it runs for real estate agents and brokerages
SkySlope, dotloop, Brokermint or Lone Wolf connections are configured and tested, Gusto and Bill.com are linked and opening balances are loaded from reconciled figures. Xero setups follow the same design with tracking categories.
What is accounting software setup and migration?
Accounting software setup is the configuration of a new ledger: chart of accounts, tax codes, bank feeds, items, users and apps. Migration is moving existing books from another platform or spreadsheet into that ledger so history, open items and balances carry across. Both end with a file that agrees to the old records and is ready for live posting.
What we handle for real estate agents and brokerages
- Chart of accounts separating gross commission, splits, referral fees and company dollar
- Trust account and trust liability accounts set up with a transaction-level ledger
- Classes or locations per office with agent records as customers and vendors
- Commission entry template built and tested on real settlement statements
- Transaction platform, payroll and AP connections configured and verified
The KPI that matters here
Setup complete with a tested commission template and reconciled opening balances before the first live month.
Real estate compliance notes
1099-NEC for agents and referral partners
Brokerages report commissions paid to licensed agents on Form 1099-NEC because agents who meet the IRC section 3508 tests are statutory nonemployees. Referral fees paid to other brokerages and payments to unincorporated vendors are reported the same way once they reach the annual threshold. We keep W-9s and cumulative totals current so the forms are prepared for your review and filing by the January deadline.
Commission splits and disbursement records
Each closing is documented from the settlement statement through the commission disbursement authorization to the agent payment, so the split, cap progress, franchise royalty and any referral fee are traceable. Many state commissions require these records to be retained for several years. We file the documents with the entry in LedgerDesk.
Earnest money and trust accounts
Most state real estate commissions require earnest money to be held in a separate trust account, never commingled with operating funds, with a transaction-level ledger and a monthly reconciliation. Some states require interest-bearing accounts or set deadlines for deposit and disbursement. We maintain the ledger and reconciliation; the broker signs and remains responsible under the license.
Client money in the UK, Canada and Australia
UK letting and estate agents must belong to a Client Money Protection scheme and keep client money in a separate account. Canadian and Australian agencies operate under provincial or state trust-account rules with regular reconciliation and audit requirements. We prepare the ledgers and reconciliations in the format the regulator or auditor expects.
Real estate software we work in
- QuickBooks Online
- Xero
- Gusto
- Bill.com
- Stripe
- Brokermint
- SkySlope
- dotloop
- Lone Wolf Back Office
- All 50 platforms
More for real estate agents and brokerages
Other services for real estate
Software setup and migration in other industries
Frequently asked questions
How should commission income be structured in QuickBooks Online?
Gross commission is recorded as revenue, and agent splits, referral fees and franchise royalties are recorded as cost-of-commission accounts beneath it, leaving company dollar as gross profit. Agents are set up as vendors for disbursements and as customers for fee billing. Classes or locations track each office. The accountant documents the structure so anyone can follow it.
Can you connect SkySlope or dotloop to the accounting file?
Where a direct integration exists, it is configured and tested with sample closings; where it does not, a monthly export is mapped to the commission template. Either way, the accountant reconciles the platform's closed list to the ledger each month. Brokermint and Lone Wolf Back Office are handled the same way.
Do you set up the trust account in the same file?
Yes, the trust bank account is added with a matching trust liability account, and each transaction is tracked by customer or project so the individual balances can be totaled for the three-way reconciliation. Operating and trust accounts are kept clearly separate in reports. Some brokers prefer a separate file for trust, which we can set up instead.
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