How it runs for real estate agents and brokerages
Individual agents and teams receive a P&L with tax-relevant categories such as mileage, marketing and dues. Reports are delivered in QuickBooks Online, Xero or Fathom, and franchisor formats are prepared from the same data.
What is outsourced financial reporting?
Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions.
What we handle for real estate agents and brokerages
- Company dollar and cost per closing by office and month
- Agent production, split and cap status on one schedule
- Lead-generation and marketing spend against closings sourced
- Break-even closings per month against fixed overhead
- Agent and team P&L with tax-relevant expense categories
The KPI that matters here
Monthly reporting package issued within 2 business days of the close with every figure traceable to the ledger.
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
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Financial reporting in other industries
Frequently asked questions
What is company dollar and why report it?
Company dollar is what the brokerage keeps from gross commission after agent splits, referral fees and franchise royalties. It is the revenue that actually pays rent, staff and marketing. Reporting it by office and per closing shows whether growth in agent count or sales volume is adding profit or just volume.
Can you report on lead-generation return?
Yes, marketing and lead-generation spend is tracked by source, and closings are tagged with their source from your CRM or transaction platform. The report shows spend per source against company dollar from closings attributed to it. Attribution depends on how consistently agents tag leads, so the accountant reports the tagging rate too.
Do individual agents get their own reports?
Agents and teams on their own engagement receive a monthly P&L with commission income, team payouts, marketing, MLS and association dues, licensing, mileage and vehicle costs, plus a quarterly estimated-tax summary prepared for their CPA to review. The categories follow what a tax preparer needs, and the report is available in LedgerDesk.
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