It's official, tax season has been pushed back to the summer. Just because the government is allowing people additional time to file doesn't mean you should be resting on your laurels if you can help it, though!
Now is a great time to start reviewing your records to see what kinds of awesome tax breaks you'll qualify for when you do file.
If you don't have well-kept records that outline your realtor income and expenses, we recommend you get organized because every bit of information you collect could help an accounting professional lower your tax burden.
Not sure where to start when it comes to income and expense tracking? Below, we share some pragmatic tips that can help you get on track.
1. Get Spreadsheet Savvy
You're a realtor, so chances are that you've used a spreadsheet or two in your day to organize leads and do several other sales activities. If you're looking for a cheap way to suss out your realtor income and expenses, we recommend you use your spreadsheet skills to start tracking your money.
There are several Excel and Google Sheets templates out there that let you track how money moves through your business, so find one that works for you and give it a whirl.
2. Go the Automated Route
While using a spreadsheet to track your realtor income and expenses is free, it's far from the best bookkeeping solution. Today, professionals like you opt for automated tracking software like QuickBooks and FreshBooks.
Both of those programs suit realtors exceptionally well and offer extensive free trials so you can try them out without any initial cost burden.
3. Brief Yourself on Common Deductions
As you start tracking your data, you'll want to understand what the information you're seeing translates into in the way of tax breaks. An accountant can help you with this. But we always recommend that you take time to brief yourself on tax benefits so you can organize/track numbers in more meaningful ways.
4. Hire a Professional
While you may be a whizz at putting together financial data, remember, your expertise is in helping properties change hands, not navigating tax law. Consequently, we recommend that you take your numbers and have a tax professional look over receipts, pay stubs online, and other important documents to ensure accuracy.
Programs like QuickBooks let small business owners that are subscribed to their "Premium Tax Bundle" file Federal and State returns for free. Even so, it may behoove you to have an in-personal professional look over your numbers rather than relying purely on automated workflows to ensure optimal tax breaks.
Effectively Tracking Your Realtor Income Is Integral to Tax Filing
While it may seem like a chore to keep track of every dollar that flows into your realtor income and out of your business, doing so can make a huge difference when it comes to saving money on taxes and avoiding audits.
We hope the advice we've shared helps you better manage your finances going forward and makes this tax season a breeze!
For more information on all things real estate, check out additional content on our blog!