How do you track your money as a self-employed real estate agent? (2024)

One of the first steps to track your money as a self-employed real estate agent is to set up a separate bank account for your business transactions. This will make it easier to distinguish your personal and business income and expenses, and avoid mixing them up. You can also use a dedicated credit card or debit card for your business purchases, and pay it off from your business account.

As a self-employed real estate agent, tracking your money can be made easier with the use of accounting software or apps. Look for features such as the ability to sync with your bank account and credit card, create and send invoices, generate reports and summaries of income and expenses, calculate and file taxes, or integrate with a tax software or service. Popular accounting software or apps among real estate agents include QuickBooks, FreshBooks, Wave, and Zoho Books.

As a self-employed real estate agent, you can deduct a variety of business expenses from your taxable income. For instance, you can deduct mileage for driving to showings, meetings, and other work-related activities, which can be tracked with a mileage tracker app or logbook. Home office expenses are also deductible, such as a portion of rent, mortgage, utilities, insurance, and maintenance costs. In addition, marketing and advertising costs like flyers, signs, website fees, social media ads, and online ads are all deductible. Professional fees and dues like licenses, memberships, education costs, and training costs are also deductible as well as equipment and supplies like phones, computers, printers, cameras, software, and stationery. It's important to keep receipts and records of all deductible expenses organized by category and date. You can also use an app or scanner to digitize and store your receipts.

Finally, to track your money as a self-employed real estate agent, you should review your income and expenses regularly, and compare them to your goals and budget. This will help you identify your strengths and weaknesses, and adjust your strategy accordingly. You can also use this information to plan ahead for your cash flow, savings, investments, and retirement. You should review your income and expenses at least monthly, quarterly, and annually, and use the reports and summaries from your accounting software or app to guide you.

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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