QuickBooks Online for Real Estate Brokers - The Essentials

Register for the course here:

Index

2:00 Lots of issues if a broker ignores the right process to record the transaction when getting a commission.

2:55 Right way to record the commission and paying the agent.

3:28 Putting in the correct customer on the invoice.

4:58 Setting up the broker commission as product and service in the invoice.

5:46 Setting up royalties as COGS in expense account

7:00 Agent commissions payable created as a service item in liability account

8:38 You can write in agent commission in the percentage instead

9:23 Record the agent commission so we can 1099 them

9:42 Running a profit and loss and filter to the one customer

10:41 Create a bill

11:08 Picking up the expense for the agent, adding in the service as agents commission paid

12:58 Adding in agents commission payable as -18k to zero out the bill

13:25 Checking P&L and filtering for one customer

15:00 Fixing chart of accounts Commission paid as COGS

15:21 Showing commissions in COGS

16:16 Back to balance sheet to check work

17:29 The recap of video

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Nerd Enterprises, Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Nerd Enterprises, Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.

[cyrusasiimwe]

This has been really informative to me. As a newbie of QuickBooks for real estates this is a good breakdown of how make entries IN QB. I would like to learn more. Thank you.

[danpeele]

Fantastic video !!, much needed, thank you

[allamericanhomegroupbroker]

OMG thank you so so much for this video!!! This is awesome stuff and exactly what I was needing :-)

[karenconradKC]

Thank you this was a great tutorial on how to report the commission income and breakdown in Quickbooks.

[lionelladay]

Thank you for the video. One question. When setting up the "Commissions Paid" as an expense. What is the "Detail Type"?

[upishararuwan]

Really helpful video. Thank you so much!!!

[michelledickens]

Very helpful video. 1) What if you are the listing broker (brokerage of 1 - S Corp - you as an employee), and you have a sold home with a cooperating broker on the buy side. Do you record the entire commission per the listing agreement (EX: $30k)? Do you then show the cooperating broker amount (50% of the full commission) the same way you show here (i.e. essentially treating that other brokerage as you would an agent if they were sponsored under your brokerage)? 2) Were do you select that a cooperating broker is 1099 eligible?

[talayahtownsend]

Awesome! Do you have a video showing how to do this using the bank feed?

[teresareed]

Our process is a little different, we get the full commission check and then we cut a check to the agent, would this reconsile differently or will I end up with the same outcome?

[muhammadluqman]

Thanks for the sharing and it is possible you make the same video regarding tax filling ?

[mariabidwell]

Hello ! Do you have a most updated video about REAL ESTATE . I’m doing the broker side

[allisonbarr]

Thanks for sharing this! After watching this video, I believe I need to rework the QBO accounts and how we process closings! This process doesn't need any other software to process the closing and that's what I am hoping to achieve. I want to cut down on the processing issues. Does this way have an option for an automatic payment to the agent?

[SignatureLHRealtor]

Great tutorial, does this also apply to QB Simple Start? Thank you

[rapidbookkeepingllc]

This is great! I have a commission that was paid directly to the agents without the broker being paid. Should the same process be followed? I'm concerned that I follow the same process the invoice zeros out, I can't match to the deposit, and income is overstated. Any suggestions?

[padlabaz]

Hey Seth,

In your example you assume payments are being wired from title.

What if commissions were paid directly to the brokerage and then we cut a check to the agent?

[chrisawalsh]

Thanks for this video. I may have missed something but how do you handle the deposits (held in the trust account) until the deal closes? Once the deal closes, the rest of your process seems to make sense. Also, we are seeing deposits worth more than the commissions payable, how do we go about paying the overage back to the customer? Thanks in advance!

[tonyatoomey]

I’m just getting started with QuickBooks. You mentioned putting the sales price for the quantity and the commission for the rate column however the rate column is a two digit decimal column. I finally figured out where to change the format however it does not allow you to go to three decimal digits? Many Commissions now days are 2.5%, so I need .025 for rate but the system will not allow it. Suggestions?

[markhavula]

Can you make a video for real estate agents?

[donnabullock]

Help with 1099. The bill entered zeroes out therefore the agent's commission balance shows as -0-. Therefore no 1099 balance.

[documentosgilvan]

This video and explanation was great but in my cases we received total commission and we paid the agent commissions and we have our royalties and broker commission deducted in this cases how can we do it?