Thursday, July 18, 2013

Accounting for Real Estate Agents

As a Realtor  your paychecks completely depend on your abilities to sell a house. Unlike others types of employees who receive steady paychecks, Realtor paychecks fluctuate wildly from each sale. For this reason, managing your finances is a paramount importance. 

The major question you may ask is what financial software should you use? This should be your second question, your first question to ask is if you are a independent contractor or employee. 

If you are an employee for your brokerage, then you can use any time of personal finance software to manage your money. I would suggest YNAB for its budgeting capabilities read more here, however, if you need to track expenses for tax purposes then using Quicken Premier/Deluxe would be best. 

Independent contractors should aim use QuickBooks Pro or QuickBooks Online Essentials. These programs help make tax season a breeze and will reduce the number of times your accountant rolls their eyes when you come in to have your taxes done. While Quicken does handle businesses, QuickBooks will place your taxes in a format that your account would be familiar with, namely using P/L statements, Balance sheets, and other business reports that accountants use for tax filing. 

QuickBooks has a robust tax line mapping compared to Quicken, and it is solely a business accounting program unlike Quicken home and business. If cost is something you are worried about and you also need a mobile solution. QuickBooks Online Essentials will give your the tax reports, mobility, and excellent money management for less than $30 dollars per month.

If you have any questions about setting up your QuickBooks company file or deciding which program to use, leave a comment!


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