As a real estate agent, you work under the supervision of a real estate broker, but you still need to manage your business efficiently, the same as any other small business owner, to increase sales and revenue. Because you manage a range of business activities as a real estate agent, including sales, marketing, expense tracking, and taxes, you most likely need top-quality, versatile accounting software to stay organized. Learn more about how accounting software, such as QuickBooks, can help you grow your business.
When your day involves meeting and following up with clients, showing properties, making numerous phone calls, and meeting the boss for lunch, it is all too easy to forget important bookkeeping matters. With cloud-based bookkeeping software, you can enter a wide range of details impacting your business as they come in, such as new client information and business expense receipts, in a few minutes. When youre on the road, you can even use your mobile device to access apps that integrate with QuickBooks to upload expenses, track mileage, or enter contacts. What you end up with is all of your financial details neatly organized in a database, from which you can pull reports, make bank deposits, and see the big picture showing how your business is growing.
Knowing your sales data is crucial as it helps you keep track of your monthly earnings and provides insight into ways you can grow your business. You can use bookkeeping software to enter specific details about your sales and commissions such as property addresses, commission splits, and bonuses. Entering this financial data in QuickBooks gives you seamless tracking of your sales if you decide to switch brokerage firms during the year. You can also add your banking information and bills into the software, which allows you to deposit earnings in your bank account quickly and pay your bills on time.
Real estate agents can deduct a wide range of expenses come tax time. Some of the expenses Canadian real estate agents can deduct include:
- Home office expenses
- Office supplies
To take advantage of deductions, the Canada Revenue Agency typically requires you to produce documentation. Instead of keeping folders full of faded receipts for years, consider taking snapshots of your receipts and attaching them to your expense transaction entries in QuickBooks. With expense information entered, you can prepare profit and loss statements, which provide your annual financial data in an easy-to-understand format useful when preparing your tax forms.
Marketing is vital for success as a real estate agent. Integrate your customer list into QuickBooks, from which you can pull mailing addresses and email addresses to send direct mail and email marketing campaigns. You can also use QuickBooks apps to grow your customer list even when you’re on the go, away from your desktop or laptop computer.
References & Resources
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.