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Best Real Estate Accounting Tips for Agents and Brokers

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Cash basis accounting is often preferred by small businesses because it’s easier to maintain, and it tells you how much money you actually have in the bank on any given day. Accrual accounting is usually the choice of larger companies because it portrays a more accurate portrait of your real estate business’s financial performance.

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Vocabulary Guide

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GL Account / General Ledger Account Textbook Definition A data record used to classify, sort, and summarize a company’s accounting transactions. Street Definition The method of accounting that small business owners use if they don’t value financial data in making decisions to grow their business.