How it runs for real estate agents and brokerages
Commission wires from title companies are matched to specific closings, and split disbursements are traced out. Your accountant completes every reconciliation within days of the statement, lists exceptions with an owner and files the trust reconciliation in LedgerDesk for the broker and any regulator review.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for real estate agents and brokerages
- Operating account reconciled weekly with commission wires matched to closings
- Trust account three-way reconciliation prepared monthly for broker signature
- Agent-fee card deposits matched net of processor fees
- Company card spend on marketing reconciled with receipts by agent or office
- Outstanding disbursement checks tracked and resolved before they go stale
The KPI that matters here
Trust account three-way reconciliation completed and filed by the 10th of every 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
Bank reconciliation in other industries
Frequently asked questions
What is a three-way trust reconciliation?
It compares three figures on the same date: the adjusted bank balance of the trust account, the trust ledger control balance in the books and the total of every individual transaction's balance. All three must agree. The accountant prepares the schedule, lists any differences with their cause and files it for the broker to sign and retain.
How do you match a commission wire to the right closing?
Each closing posted from the settlement statement records the expected net amount and the title company or attorney. When the wire arrives, the accountant matches it to that closing and clears the receivable. Amounts that differ from the expected figure are investigated the same day, commonly a wire fee or a last-minute credit on the statement.
Can you reconcile a trust account that has been neglected?
Yes, the accountant rebuilds the ledger from deposit slips, purchase agreements and closing disbursement records, reconciles month by month and documents any unexplained items for the broker. Where a shortfall or excess appears, it is reported immediately rather than absorbed. The broker decides on any corrective step and remains responsible under the license.
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