Real Estate
Commission income arrives unpredictably. Property expenses need tracking by unit. We help you see real numbers.
Income That Doesn't Follow a Schedule
Real estate professionals don’t get paychecks. Agents wait for closings that slip a week, then another week. Property managers collect rent on the first and watch expenses arrive all month long. Investors accumulate properties over years, each with its own income stream, maintenance costs, and depreciation schedule. The money comes in irregularly and the accounting has to work with that reality.
The range within this industry is significant. An agent tracking commission income and marketing costs operates completely differently from a property manager handling maintenance invoices across 40 rental units in Macomb County. A real estate investor with properties scattered across Metro Detroit needs depreciation schedules and 1099 prep for contractors. Title companies handle escrow funds with compliance requirements. Same industry, very different accounting needs.
Who This Covers
Who This Covers
Real estate agents, brokers, property managers, investors, title companies, inspectors, appraisers. Anyone in Metro Detroit involved in buying, selling, or managing property. Solo agents working from home, small brokerages, property management companies with growing portfolios, investors scaling their holdings.
What Makes It Complicated
What Makes It Complicated
Commission income that swings wildly month to month. Property managers holding trust funds and generating owner statements. Investors with multiple properties requiring individual performance tracking. High deductible expenses scattered across credit cards and cash. Most agents are 1099 contractors, which means quarterly tax estimates that many never set up.
What We Handle
Real estate bookkeeping starts with matching how money actually moves. Commission income tracked by closing. Marketing and staging expenses captured throughout the year. Mileage documented for showing properties. For property managers, income and expenses tracked by property with owner statements ready when needed. For investors, performance tracked by unit including rental income, vacancy, repairs, and depreciation.
QuickBooks configured for real estate from the start makes the reports useful. Agents can see cost per closed deal. Property managers can generate owner statements without rebuilding data from scratch. Investors can compare cash flow across properties and make informed decisions about their portfolio. Tax prep captures the deductions that often get missed because nobody was tracking them properly throughout the year.
Income and Expense Tracking That Matches Your Business
Income and Expense Tracking That Matches Your Business
Agents see commission by transaction and marketing spend per listing. Property managers track rent collected, maintenance costs, and owner distributions by property. Investors see actual cash flow after vacancy and repairs on each unit. QuickBooks set up to produce reports you can actually use for decisions instead of generic financial statements that don’t reflect how real estate works.
Tax Planning for Irregular Income
Tax Planning for Irregular Income
Quarterly estimates calculated based on actual closings so April doesn’t deliver a surprise. Self-employment tax accounted for from the start. Deductions documented including vehicle mileage, home office, marketing, MLS fees, continuing education, and client entertainment. Depreciation tracked for investment properties. 1099s prepared for contractors and vendors you pay throughout the year.
What Goes Wrong
Real estate moves fast. There’s always a showing, a closing, a problem tenant, a deal falling through. Bookkeeping gets pushed to next week, then next month. Tax season arrives and the CPA asks for documentation that was never created. Mileage wasn’t logged. Marketing expenses are mixed with personal purchases on the same credit card. Commission checks went into whichever account was convenient that day.
New agents who left W-2 jobs are blindsided by self-employment tax. Nobody warned them about the extra 15.3% or the quarterly estimates they should have been paying. A $60,000 commission year becomes an $8,000 tax bill in April with no savings to cover it. Property managers get audited and realize their trust account records have gaps. Investors can’t tell which properties actually make money because expenses were never separated by unit.
Mixed Accounts and Missing Deductions
Mixed Accounts and Missing Deductions
Commission deposited into personal checking. Business credit card used for groceries. By December, separating legitimate deductions from personal expenses requires archaeology. Thousands in deductions get missed because the records are too messy. Or worse, deductions get claimed without documentation and create problems later if anyone asks questions.
The First Tax Bill
The First Tax Bill
Coming from a W-2 job, you’re used to taxes being handled automatically. As a 1099 contractor, nothing is withheld from your commission checks. Self-employment tax adds 15.3% on top of income tax. Skip quarterly estimates and you owe penalties too. Agents in their first independent year routinely owe $6,000 to $12,000 they didn’t plan for.
What Changes
Every commission tracked from closing to deposit. Every expense categorized and tied to business activity. Property managers with clean owner statements and trust account reconciliation that survives review. Investors seeing actual performance by property including the repairs and vacancy that eat into rental income.
Tax estimates calculated throughout the year based on actual closings. You set aside the right amount from each commission instead of guessing. Deductions documented and categorized before December arrives. When your CPA opens the books, everything is there. The chaos becomes a system that runs while you focus on deals and clients.
Real Numbers for Business Decisions
Real Numbers for Business Decisions
What does it actually cost you to close a deal after marketing and time invested? Which properties cash flow after accounting for vacancy and maintenance? Is that showing schedule sustainable given what you’re netting per transaction? You stop guessing at profitability and start seeing it clearly. Growth decisions come from data, not gut feeling.
Tax Season Without the Scramble
Tax Season Without the Scramble
Books are clean. Deductions are documented. Quarterly estimates were paid on time. Your CPA has what they need without chasing you for missing information. Whether you owe or get a refund, you knew it was coming months ago. April becomes an administrative task instead of a crisis that disrupts your spring selling season.
Metro Detroit's Small Business Bookkeeper
The Next Step:
A Short Conversation
Tell us about your business and your current bookkeeping situation. We'll listen, answer your questions, and give you a clear quote.
