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What Is Involved in Bookkeeping For Real Estate Agents?

Real estate agents running a real estate company must accurately keep records to ensure they know how well their business is doing. Furthermore, tax laws and government regulations must be followed in order for them to avoid fines and penalties. However, many agents are not aware of how to accurately do this. Fortunately, there are companies that specialize in bookkeeping for real estate agents to ensure they are compliant; learn what is involved with this type of bookkeeping below.

The Process of Bookkeeping For Real Estate Agents

Bookkeeping for real estate agents involves the systematic record keeping, organization, and management of the financial transactions related to real estate activities such as payments, real estate investment trust (REIT) shares, commissions earned on property rentals and sales, and more. To properly record these transactions, both the dollar amount and the type of property or transaction must be included in the bookkeeping.

What Else is Involved in This Type of Bookkeeping?

Carefully tracking expenses is key with this type of bookkeeping. That is because expenses related to advertising and marketing must be recorded. This includes such items as promotional activities, online listings, and print materials.

Transportation costs associated with this business must also be carefully recorded, including costs related to maintaining the vehicle that allows the agent to visit properties and meet clients. Other costs such as gasoline for the vehicle and travel arrangements at hotels and motels must also be properly documented.

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