If you are a broker or agent, then you will want to learn QuickBooks Online for Real Estate Brokers – How to Record a Sale
If you are a real estate broker, or agent, who uses (or wants to use) QuickBooks Online to track your income and expenses, then you are going to want to manage your listings in QuickBooks Online.
We’ll cover agents soon, in an upcoming video, but for now we’re going to look at QuickBooks Online for Real Estate Brokers. It works basically the same. The primary difference, is that the Broker is paid by the title company (ultimately by the buyer or seller that they represent). The Agent is paid by the broker.
One of the challenges is to track the amount a home sold (or was purchased) for, without picking that up as income. The key to using an accounting system like QuickBooks Online for Real Estate brokers effectively, is to know how to record your transactions in a way that will enable you to report on that information later. It isn’t enough to know how to put the information INTO the system. You have to know how to enter the information, in a way that will enable you to provide really meaningful information in the reporting area.
When using QuickBooks Online for real estate brokers, I am concerned with tracking the income, and also the listing, as well as final sales price of the property. I figured out a trick to this a while back, while I was on a support call with someone. Once I realized this, I knew exactly how to setup QuickBooks Online for real estate brokers and agents.
There are many ways to capture income in QuickBooks Online. You can record a sales receipt, an invoice, or you can book a deposit straight to an income account. When handling the accounting for real estate brokers and agents, I prefer to use an invoice. The reason, is that, done this way I can easily distinguish, and document the sale date (invoice date) from the date that funds are received.
I like using QuickBooks Online for real estate brokers and agents, because I can easily tag expenses to a listing (such as the agent commission). Between that, and knowing how to record a real estate sale the way I show you here in the video, you have all of the power and convenience of working with cloud accounting software, and all of the knowledge for how to make this work in a way that provides you with everything from the correct tracking, all the way to really meaningful reports.