Not sure how much you’re spending on your real estate business? Then you’re not sure how much you’re making, either. You need a realtor expense spreadsheet.
A realtor expense spreadsheet makes it easier for you to track your cash flow, by identifying your major expenses and streamlining your spending.
Without an expense sheet, it’s difficult to tell whether your real estate business is truly successful or not.
Let’s take a look at how to make a real estate agent expenses spreadsheet, how to customize it to your needs, and how to manage your expenses in the future.
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How Do You Make a Real Estate Agent Expenses Spreadsheet?
You can use either a Microsoft Excel file or a Google Sheet to make an expense spreadsheet. An expense spreadsheet is simply a listing of expenses — usually separated by categories — that you then total together. It goes hand-in-hand with your real estate sales tracking spreadsheet.
As you spend money throughout the month, quarter, or year (depending on how extensive your expenses are), note all your spending on the sheet. As a real estate agent, you should be keeping all your receipts and frequently determining whether an expense is reimbursable or will be non-reimbursed.
You can later use this business expense sheet to outline your operating expenses, determine your income, and identify any tax deductions. Your expense spreadsheet can also serve as a budget if you want to keep a close eye on your expenditures.
Managing Your Reimbursable vs. Unreimbursable Expenses
It’s wise to keep two spreadsheets: One for reimbursable expenses and one for unreimbursable expenses.
A reimbursed expense isn’t a tax deduction, but real estate professionals have to track their reimbursable expenses so they can request reimbursement — ideally by project or by the client.
Consider creating a new tab in your reimbursements spreadsheet for each property. You can then send this reimbursements spreadsheet to your clients as a bill.
Other Types of Realtor Expense Spreadsheet and Real Estate Accounting
In addition to tax deductions and expenses, there are also spreadsheets for real estate investing, house flipping, rental properties, and more. The type of expense spreadsheet you need depends on the type of expenses that you’re tracking.
Here are a few types of spreadsheets you might need:
- Real estate investment. A real estate investor should keep comprehensive reports on each property, whether they’re investing in commercial real estate or residential real estate. Deduct your expenses from your income and you’ll have your net operating income.
- House flipping. Every part of the real estate transaction, including closing costs and real estate taxes, needs to be factored into the net income of a house flipping company. On a project-by-project basis, this is how you’ll determine the amount of income tax you need to pay.
- Landlords. A landlord should be able to see how much a rental property is making them, based on the rental expenses and the rental income. Expenses might include property tax, insurance, and repairs.
- Property management. A property manager will need to account for any expenses, both reimbursed and unreimbursed, for the property they manage. This budget template may include repair fees, employee fees, and other maintenance.
In addition to spreadsheets, real estate accounting data can be held in accounting software (like QuickBooks) or a real estate CRM. Some real estate professionals hold on to every credit card receipt; other professionals upload their credit card receipts automatically through their smartphones.
The Advantages of a Real Estate Expenses Spreadsheet
A real estate expenses spreadsheet makes budgeting and taxes easier. With an expenses spreadsheet, you can easily see how much a property costs you — and, consequently what type of cash return you’re achieving.
With a real estate spreadsheet, a real estate professional, business owner, and investors can see every deduction and monthly expense. They can also track any personal expense they put into a property that might be a loan to their business.
Landlords can see whether they need to raise the rent on their tenant to break even — and house flippers can see whether their projects have been fruitful.
When it comes time for them to do their tax return, each expense category can be transferred to the taxes.
Real Estate Agent Expenses Spreadsheet Template
You don’t need to create a spreadsheet from scratch. Our realtor expense template will help you start tracking your expenses today. Just make a copy of the spreadsheet and start adding your expenses right away.
Accounting is at the heart of the real estate business. At the end of the day, it’s about making more money than you’re spending. If you want to learn more about how to manage your expenses, how to improve your spending, and how to increase your income, you can always consider accounting classes.
Meanwhile, in addition to using an expense spreadsheet, consider drawing up a comprehensive budget. Real estate agents deal with unpredictable income all the time. Mindful budgeting can help.
What expenses can I deduct as a real estate agent?
Travel, meals, and continuing education fees are some of the most common expenses for a real estate agent. As a real estate agent, you’re a business; most of your business-related expenses should be deductible.
How do realtors keep track of their expenses?
A lot of realtors either keep track of their expenses on a spreadsheet, use a real estate accounting suite, or just use a general accounting program (such as QuickBooks).
Can a real estate agent deduct home office expenses?
Any realtor who works from home should be able to deduct home office expenses. Generally, these are calculated by the square footage of the home office.
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