Atlanta Real Estate Agent Accountants

Accounting For Real Estate Agents: Understanding Best Practices

Real estate professionals spend a lot of time searching for the right accounting service. That's because the real estate industry has so many unique facets that it's not always easy to locate a CPA firm that has the expertise to help. The CPA firm must have the capabilities to handle bookkeeping for real estate agents, tax planning for real estate agents, and dozens of other particulars that so many full-time real estate professionals need.

A real estate agent accountant understands how to assist you with your business objectives and growth targets. Suppose a CPA firm offers "accounting for real estate agents" as part of its menu of services. In that case, it must stay abreast of industry trends regarding cash-flow stabilization, operating cost reduction, and profit maximization even in turbulent economic times. A top-notch accountant for real estate agents fully understands that the RE industry is exceptionally cyclical, with alternating periods of high profits and significant losses.

A Typical Assignment

What does an experienced accountant offer to the typical real estate professional? In addition to routine bookkeeping for real estate agents, an accountant should take on all the specialized functions of a real estate professional like 1031 exchanges, payroll processing, and cost segregation. Of course, each real estate company has its specialties, which means the accountant should be ready to focus on minute details of how a real estate firm operates within its niche, locality, and market segment.

While there might not be a "typical assignment" for an accountant who services a real estate business, it's common for a CPA firm to offer tax planning to maximize passive activity deductions, where applicable. There are also tax deferral issues, unique inventory situations, and property tax laws that enter into the mix.

Here's a list of what every real estate agent should expect from a reputable accounting firm:

  • Handling of all transactions categorized as "tax deferral"
  • Standard payroll processing tasks for small or medium-sized concerns
  • Full bookkeeping services on an outsourced basis
  • All the services associated with small businesses
  • Tax planning for real estate agents' unique business models
  • Due diligence for any acquisitions
  • Advisory services for new businesses
  • Assistance for sole proprietor RE companies
  • Analysis of cost segregation issues for RE companies
  • Finding and reporting all allowable deductions for passive activity
  • Keeping track of all 1031 exchanges according to date, size of the transaction, and other aspects of this category
  • Full-scale CFO advisory services
  • Complete, realistic strategies for annual and long-term tax planning
  • Full support and assistance with setup for QuickBooks

In truth, there's a lot more that goes into offering comprehensive accounting services to a real estate firm. Any real estate entity, whether a sole proprietor, partnership, small firm, or a very large company, needs to partner with a CPA who understands all the unique aspects of the real estate business and has the experience to hit the ground running. When you hire an accountant, spend time asking about their background with real estate firms.

Finding the CPA Firm That Fits Your Needs

Fusion CPA is a full-service firm based in Atlanta. Our team possesses a wide range of specialties, including acting as a CFO business advisory for real estate agents and performing accounting services for small and mid-sized companies in many industries. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!


This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.