Who this is for
Catch-Up Bookkeeping for Real Estate Agents and Brokers
An agent’s books are simple in structure and messy in practice: commission checks net of splits, marketing paid personally, a car that is the office, and a year-end 1099-NEC that does not match what hit the bank. The catch-up puts the gross commission back, shows what the brokerage kept, and sorts the rest.
Commissions, gross and net
A commission check arrives after the brokerage split, desk fees, transaction fees and sometimes marketing deductions. The 1099-NEC from the brokerage may report gross or net depending on how it accounts for the split, and the books need to agree with it. The cleanup records each closing from the settlement statement or commission breakdown, so gross commission, splits and fees each show, and the year ties to the 1099.
The expenses that are everywhere
Marketing paid on a personal card, lockbox and MLS fees on another, mileage never logged, client gifts and closing costs paid out of pocket. The cleanup gathers these from every account you used and separates business from personal; what cannot be supported is listed rather than claimed. From here on, one business card for everything is the single change that makes next year easy.
The S-corporation question
Agents at a certain income are routinely told to form an S corporation. Whether that saves money depends on profit, state and how much the owner would need to take as payroll, and it is a question for your tax preparer. What the catch-up does is produce the profit figure the decision turns on; without clean books the advice is a guess either way.
Small brokerages
A brokerage adds escrow or trust accounting, agent commission payables and 1099-NECs for every agent at the current threshold. Brokerage back-office software such as Lone Wolf produces the commission detail; the cleanup reconciles it to the books and the trust account to the bank, which is the piece regulators look at.
Send how many closings a year, whether you are an agent or run a brokerage, and how many months are behind. The reply within a business day says what the deposit would be.
Real Estate Agents & Brokers: common questions
My 1099 does not match my deposits. Which is right?
Usually both, for different things: the 1099 may be gross commission and the deposits are net of splits and fees. The cleanup makes the books show the relationship.
Can mileage be reconstructed?
Partly, from showings, closings and the calendar. What cannot be supported is said plainly.
Do you handle brokerage trust accounts?
Reconciling the trust account to the bank and to the back-office software, yes. Trust accounting rules are state-specific and are confirmed with your broker compliance resources.
What your bookkeeper handles
- QuickBooks Cleanup Services
- Catch-Up Bookkeeping Services
- Bookkeeping Cleanup Services
- Behind on Bookkeeping Before a Tax Deadline
- Multiple Years of Bookkeeping, Rebuilt
- Monthly Bookkeeping After the Cleanup
Also written for Sole Proprietors & Single-Member LLCs, S Corporations, Contractors & Trades, E-commerce Sellers, Restaurants & Food Businesses, Medical & Dental Practices and Switching From Another Bookkeeper.
Request a quote for your real estate business
Tell us how far behind the books are and whether there is a date. Your bookkeeper replies within one business day with a plain answer: what it would take, whether the date is reachable, and what the deposit would be. Requests answered within one business day · Calls Mon–Fri, 9am–5pm Eastern Or call (888) 786-6502 if you would rather talk it through first.