The 3 Key Bookkeeping Habits of Successful Realtors

The 3 Key Bookkeeping Habits of Successful Realtors

You’re a Realtor, Not a Bookkeeper

So why is it so hard to remember that sometimes?

Maybe it’s because managing your expenses is such a time consuming but critical part of owning your own business.  Like most realtors you’re always on the go. So you avoid it as much as possible.

If you’re in the habit of putting off the inevitable, consider some small changes that will make a huge difference to your business.

The 3 Key Bookkeeping Habits of Successful Realtors:

  1. Use your smartphone to take photos or scans of receipts immediately. Upload them to a free service like Dropbox, Google Drive, or Evernote for your bookkeeping staff to organize and enter. For more support, there are several different paid services that will organize and verify uploaded receipts. Shoeboxed and Expensify both offer such services, including verifying, categorizing, and posting receipts, with an IRS-approved guarantee. Quickly providing digital receipts to your bookkeepers allows them to keeping the books current, which means you can make the most informed decisions possible about your business.
  2. Record all potential tax deductions. Professional expenses (like regional realtor dues, licenses, MRIS and MLS fees, and networking organizations) and direct sales expenses (like advertising, property cleaning, and client gifts) are two major categories of expenses that might be deductible. Discuss these and other deductible expenses with your accountant now, after the tax time crunch, to find out how best to prepare all year long.
  3. Document your biggest tax deduction of all.  Your car is the lifeblood of your business. So make sure to document all mileage and gas, repairs and maintenance, safety and emissions expenses, insurance, registration fees, and tires. Record your car’s mileage on January 1 and December 31 for an accurate total of the year’s mileage.

Accurate records will make tax deadlines go much more smoothly. You’ll get the best deductions possible and can concentrate more time on selling homes.

Want to learn more?

For a reasonable monthly rate, Bookkeeping Express DC Metro’s Realtor Solution service can manage all of your expenses, maintain your books, and handle your tax returns through our CPA partnerships.

Visit us at: www.dcmetro.bookkeepingexpress.com or contact Victoria Mechlin directly:  VMechlin@bookkeepingexpress.com, 703-226-2718.

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