How it runs for real estate agents and brokerages
Your accountant reconstructs each closing from its settlement statement, rebuilds the trust ledger transaction by transaction, recodes bank and card feeds and compiles 1099-NEC totals for prior years where forms were missed. Work proceeds in monthly batches while the current month is posted on time.
What is catch-up bookkeeping?
Catch-up bookkeeping is a one-time project that records and reconciles months or years of transactions that were never entered. The goal is a set of books where every bank, card and loan balance agrees with the statement and every period can be reported on. It ends when the backlog is current and reconciled, usually followed by ongoing monthly bookkeeping.
What we handle for real estate agents and brokerages
- Historic closings rebuilt from settlement statements and platform exports
- Agent disbursements, referral fees and royalties matched to each closing
- Earnest money trust ledger reconstructed transaction by transaction
- Bank and card feeds recoded to offices and expense categories
- Prior-year 1099-NEC totals compiled for your CPA's review
The KPI that matters here
Back months closed on the agreed schedule with the current month kept within 7 days throughout.
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
Catch-up bookkeeping in other industries
Frequently asked questions
Can you rebuild the earnest money trust ledger for past months?
Yes, from purchase agreements, deposit receipts, closing disbursement records and bank statements the accountant reconstructs each transaction's deposit, disbursement and refund, then reconciles every month in order. Unexplained differences are documented, not hidden. The broker receives a reconciliation per month to sign, which is what a regulator typically requests.
What if 1099-NEC forms were never filed for a past year?
The accountant compiles cumulative payments per agent and referral partner for the year from the rebuilt closings and prepares the totals for your CPA, who advises on late filing and any penalties. We provide preparation support only; your firm reviews and files. W-9s missing from that period are requested under your brand.
How long does a brokerage catch-up take?
It depends on the number of months, closings and accounts, and on whether the transaction platform holds complete records. A brokerage with a few hundred closings across a year is usually completed in monthly batches over a few weeks, with a schedule agreed at the start. Pricing depends on volume and scope; get a custom quote within 1 business day.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.