A commission check can feel great on Friday and confusing by Monday. Part of it may be set aside for your broker, part may cover marketing you already paid for, and some may need to cover taxes later. This real estate agent records example shows a simple way to keep the story straight without needing to think like an accountant.
For a self-employed agent, good records are less about making perfect spreadsheets and more about answering practical questions: What did I earn? What did I spend to earn it? Who still owes me money? And do I have the documents to support those numbers if my tax preparer asks?
What records should a real estate agent keep?
Start with the money coming in and out of your business. Keep a record of each commission payment, referral fee, rebate, and other business income. Then record business costs such as broker splits, MLS dues, advertising, client gifts, staging supplies, office costs, continuing education, and mileage.
You also need the proof behind each entry. That may be a commission statement from your brokerage, a receipt emailed from an ad platform, a parking receipt, or a bank transaction. Save digital copies in a folder organized by year and month. A photo of a paper receipt is usually much easier to find later than a receipt stuffed into a glove box.
Try to use a separate bank account and card for business activity whenever you can. This is not about making your setup fancy. It simply reduces the time spent sorting a lunch with a client from a family grocery run. If personal and business spending do get mixed together, mark the transaction clearly as soon as possible.
Real estate agent records example for one month
Imagine Jordan, a self-employed real estate agent, reviewing April. Jordan received one commission payment and paid several ordinary business costs. Here is what a simple income and expense record could look like.
| Date | Description | Money in | Money out | Category | Note to save | | — | — | —: | —: | — | — | | Apr. 3 | Commission – 18 Oak Street closing | $8,400 | | Commission income | Brokerage commission statement | | Apr. 3 | Brokerage split | | $2,100 | Brokerage fees | Shown on commission statement | | Apr. 5 | Listing photography | | $325 | Marketing | Vendor invoice | | Apr. 8 | Social media advertising | | $180 | Marketing | Platform receipt | | Apr. 12 | MLS monthly dues | | $95 | Professional dues | Payment confirmation | | Apr. 17 | Client closing gift | | $60 | Client gifts | Store receipt and client name | | Apr. 22 | Yard signs and flyers | | $148 | Marketing | Print shop receipt | | Apr. 30 | Business phone plan | | $75 | Phone and internet | Monthly bill |
At the end of the month, Jordan has recorded $8,400 in income and $2,983 in expenses. That leaves $5,417 before considering other costs, estimated taxes, or personal withdrawals. It is not a final tax calculation. It is a useful, current picture of how April went.
The brokerage split deserves attention because it can be handled in two common ways. Some agents record the full commission as income, then record the broker split as an expense, like Jordan did. Others only receive their net commission after the split. In that case, the deposit and commission statement should still be saved so the record is clear. The best approach depends on how the brokerage pays you and how your tax professional wants the income shown.
A simple way to record a commission
When a deal closes, do not wait until year-end to figure it out. Enter the payment when it arrives, using the commission statement to confirm the amount. If you paid for photos, signs, or an ad specifically for that listing, record those costs when you pay them.
Add a short note that would make sense six months from now. “Commission” is vague if you close several transactions in the same month. “Commission – 18 Oak Street closing” tells you exactly what the payment was for. Clear descriptions are one of the easiest ways to make bookkeeping less stressful.
If a transaction is pending, keep track of it separately. For example, if you sent a referral invoice but have not been paid yet, list the amount as money you are owed. Once it is paid, record the deposit and mark the invoice paid. This helps you avoid forgetting about income that has not reached your account yet.
Do not forget mileage and home office records
Mileage is often one of the most overlooked records for real estate agents. Driving to showings, inspections, listing appointments, print shops, and brokerage meetings can add up. The key is to keep a mileage log that shows the date, business purpose, starting point, destination, and miles driven.
A basic entry might read: “Apr. 14 – Home office to 18 Oak Street and back – listing appointment – 22 business miles.” Record it as close to the trip as you can. Rebuilding a year of driving from memory is frustrating and usually inaccurate.
Your commute rules and vehicle deductions can be more complicated than they first appear, especially if you work from a home office or use one car for both personal and business driving. Keep the facts in your records and ask a qualified tax professional how they apply to your situation.
If you work from home, save records for expenses that may relate to your business, such as internet, phone service, supplies, and workspace costs. Do not assume every household cost is a business expense. Keep the bill, note how it is used, and get guidance on what you can claim.
A monthly routine that takes less time
The most manageable system is usually a small routine repeated every month. Set aside 20 to 30 minutes after month-end to review your business bank account and card. Add missing transactions, attach or save receipts, and check that deposits match your commission statements.
Then look at the month as a whole. Are marketing costs climbing? Did a referral payment arrive? Is a client reimbursement still outstanding? These questions are easier to answer from current records than from a shoebox of receipts in January.
A simple bookkeeping tool can help here because it keeps income, expenses, amounts owed, and account transfers in one place. Pro Ledger Online is designed for small business owners who want that kind of straightforward recordkeeping without a steep learning curve. But the tool matters less than the habit: record transactions regularly, use clear categories, and keep the supporting documents.
Common mistakes this example helps prevent
The first mistake is recording only deposits. A deposit might represent a commission, a reimbursement, or money moved from one personal account to another. Notes and documents help you tell the difference.
The second is treating every card charge as a business expense. An expense needs a business purpose. When in doubt, keep the receipt and make a note about why you bought it.
The third is waiting until tax time. Records created months later tend to be incomplete. A short monthly check-in gives you better numbers and less pressure when it is time to prepare your return.
Finally, avoid treating bookkeeping as a test you can fail. Your first month may not be perfectly organized. Start with the bank activity you have, enter what you can identify, and improve the process one transaction at a time. A clear record of this month is a useful step toward feeling more in control of the next closing.
