Start with a dedicated business bank account and business credit card. Every commission deposit should land in that account, and every business expense should come out of it. When personal and business funds are mixed together, it becomes nearly impossible to see your real profitability or prepare accurate tax filings.

For commissions, the closing statement is your source document. It shows the gross commission, any brokerage split, transaction fees, and the net amount you actually receive. Save every closing statement digitally and record the income in your accounting software when the funds arrive in your account. Don’t record deals as income when they go under contract or when they close on paper. Record them when you get paid. This keeps your books aligned with your bank account and avoids confusion about what money you actually have.

Track your brokerage split as a separate line item rather than just recording your net commission. Recording gross commission minus the split gives you a clearer picture of total production and what percentage is going to your broker. If you’re on a graduated split or approaching a cap, this data matters.

Expenses are where most agents lose track. The common categories for real estate agents include MLS dues, lockbox fees, marketing and advertising, professional photography, staging, client gifts, continuing education, E&O insurance, desk fees, and technology subscriptions like your CRM or transaction management platform. Set these up as categories in QuickBooks so every expense gets coded consistently.

Mileage is one of the biggest deductions agents miss or mess up. You’re driving to showings, listing appointments, inspections, and open houses constantly. Use a mileage tracking app that runs in the background and logs trips automatically. The standard mileage rate adds up fast when you’re driving thousands of miles a year, but you need contemporaneous records. Trying to estimate your mileage at tax time won’t hold up if questioned.

Since most agents are independent contractors receiving 1099 income, you’re responsible for self-employment tax on top of income tax. That means setting aside roughly 25% to 30% of every commission check for taxes and making quarterly estimated payments to the IRS and the state. Falling behind on quarterly payments leads to penalties and a painful bill in April.

Reconcile your books monthly. Match every transaction in your bank account and credit card to what’s recorded in your accounting software. Catch errors early when you still remember what that $300 charge was for. Monthly reconciliation also gives you a real-time view of how much you’re actually netting after all expenses, which is the number that matters.

Most agents know what they gross in a year but have no idea what they actually keep. Proper tracking fixes that. When you can see exactly where money goes, you can make better decisions about which marketing is worth the spend and where you’re bleeding cash. If staying on top of this feels like too much while you’re busy selling homes, working with a bookkeeper in Chandler who understands real estate can take the tracking off your plate and keep everything organized for tax season.