How it runs for real estate agents and brokerages
Earnest money stays in a separate trust ledger. Bank and card feeds are cleared weekly in QuickBooks Online or Xero, and open questions go to the office manager in a short Friday list.
What is outsourced bookkeeping?
Outsourced bookkeeping means a remote accounting team records, categorizes and reconciles your business transactions instead of an employee doing it in-house. You keep ownership of the accounting file and the bank relationship. The provider works inside your software on a fixed schedule, so the books are ready for reporting, tax and lending whenever you need them.
What we handle for real estate agents and brokerages
- Closings posted from settlement statements with splits, royalties and referral fees
- Agent cap progress tracked so split changes are applied on time
- Brokerage expenses coded by office and by category
- Earnest money kept in a separate trust ledger, never in operating income
- Weekly bank and card feed clearing with a Friday open-items list
The KPI that matters here
Every closing posted within 2 business days of settlement, with zero unposted statements at month end.
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
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Frequently asked questions
How do you handle agent caps and changing split percentages?
Each agent record carries the split, the annual cap and the cap anniversary date. As closings post, the accountant updates the cumulative company dollar and switches the split when the cap is reached, then resets on the anniversary. The cap schedule is reviewed monthly with the broker so no agent is over or under paid.
Do you keep separate books for a brokerage and its owner's personal production?
Yes, the brokerage's books record company dollar and overhead, while the owner's personal sales are treated like any agent's, with the split posted through the brokerage and the owner's own expenses tracked in a separate file if desired. This keeps the brokerage P&L honest and the owner's tax records clean.
Can you book closings from Brokermint or SkySlope exports?
Yes, commission data exported from Brokermint, SkySlope, dotloop or Lone Wolf is imported or posted into the ledger and reconciled to the settlement statements. The accountant checks that totals in the transaction platform and the accounting file agree each month. Where the platform syncs directly, the sync log is reviewed weekly.
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