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.
Hey Cyrus! Thanks so much. I am so glad you enjoyed this. Check out my course here --> new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
Thank you Dan! You might want to check out the course, which just went live a couple of weeks ago: new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
Thanks!! I definitely want to invest in this. Would it also give insight on how to correct the books if they have been done incorrectly for 2 -3 years? I’ve only been working on them for 1 year, but I want to fix everything to provide more value and insight on the company’s financials.
@@talayahtownsend3565 Not specifically, but once you understand what things should look like, you can clean things up by using the balance sheet as your checklist and getting everything to look right from that point forward. You know what things SHOULD look like, so you go back and untangle things in the cleanup years and then roll forward from there. The course also comes with a Slack Community where you can ask questions and we can help you there.
Thank you. Essentials has some limits, but most of this should work. You won't have 1099 support when the time comes. It's probably worth it in the long run to upgrade to Plus at some point.
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?
You could do it the same way and it would work, but since you're paying it yourself, you can just record a check from your bank account to pay the agent.
@@kristyn3385 Yes. Create the invoice to capture the income. Instead of depositing to the clearing account, you can just deposit into your checking account, because that is the full and actual amount you'll receive. Then you pay the agent as in the real world, from your checking account.
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?
I don't know about "automatic." Every deal is different, so each agent payment will vary. Hard to automate that, but have a look at Relay Financial app.relayfi.com - you can pay agents via ACH next day with no fees. Basically you would enter a bill for what ever the agent is owed on each deal, and in a tap or two on the mobile app, yo can pay them.
I was so close to getting this set up but I think I may have the wrong version of QBO. When adding "Agent Commissions Payable" as a service, I do not have the second part under "Purchasing Information" to add the Expense Account. Was this a change or do I have the wrong QBO? Currently on QBO Simple Start. Love these videos!
You have to check the box that says, "I purchase this...." If that option isn't there then you may need to upgrade. Do you know what version you're on?
@@nerdenterprises Simple Start is what I'm seeing under my subscriptions. I wonder which upgrade I need to get the needed feature. The next levels are Essentials > Plus > Advanced. Would you happen to know?
Hi! Not much has changed - the accounting certainly still works the same. The QuickBooks Online interface has changed, but not the fundamentals. I do have a course that goes in depth on all of this, which was recorded last year: You can check it out here: nerdyurl.com/brokers-agents Of course if you have a specific question, please let me know and I am happy to answer.
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?
Thank you! I think you would have to look closely at how your agreement with the cooperating broker is structured. If you are the listing broker, and you are splitting the commission with them, then you would set up that cooperating broker just like an agent that you pay out. And like an agent you set them up as a vendor, track the commission to them, and then you can get the reporting you need to 1099 them. If you are both the brokers of record on the listing, and you never see thier share, then I can see making a case for only reporting your portion, but this does not sound like that scenario.
@@nerdenterprises Thanks for the quick response. Yes, I was the only broker of record on the listing. I do have them set up as a vendor so I can send out 1099 to them. So for my edification, I sounds like I need to create a sales receipt in QBO for my client (the seller) with the TOTAL commission earned (reason being is that the title company sent their commission split per the agreement directly to the buyer brokerage - I never saw it come to any of my accounts).Then, I need create an expanse for the buyer broker with a payment to them as a vendor who will receive a 1099. Let me know if that is correct.
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?
You convert the % to decimals by simply moving the decimal 2 places to the left. So 2.5% becomes 0.025. I just entered that in the rate column in a sales receipt with no trouble at all.
@@tonyatoomey5244 Which version of QuickBooks are you using? See my screenshot here (it should work) 🤜🏽 nerdenterprises.notion.site/QBO-Sales-Receipt-Rate-with-Decimals-5c51cb4603aa435cb78ae4d83e5a0675
@@nerdenterprises yes, your link has what I'm trying to do. I looked in settings-advanced - format, but I can't find it anywhere else? I'm using the online simple start with payroll. Apparently, the desktop version has a slider to turn off rounding, but I don't see that in the online version? Thank you for your help.
You can. At the very least the properties should be set up in the customer list. Whether or not you want to put them as sub-customers under agents is up to you and what kind of reporting you want. If it's possible you could get that listing again under another agent, then you may want to track agents another way. In fact now with QuickBooks Online Advanced which has custom fields, you could track agents that way.
@@nerdenterprises thank you for the reply! love these video tutorials. Wish the courses were more affordable for the real estate course (Im just a small business) Thanks for what you do post though! Much appreciated!
@@nerdenterprises absolutely a sweet deal for lifetime! Some day! :-) But Thanks so much for what you do post! What about agent expenses - to have a reports for the agent but not affecting the books for the broker?
When we pay our agents using a bill and bill payment, the check doesn't print the memo or the breakdown of the line items on the bill... e.g. the property address of the commission check.. or full commission and then the deductions like franchise fees as line items. Am I missing something or is it not possible?
I honestly can't speak to this. I haven't printed a check in years. We pay everything and everyone electronically. It's faster, safer, and more secure!
Hi sorry, not yet! I am releasing the course this week, and I am going to add a few lessons in there to address the differences from brokers to agents.
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?
You still need to show the Gross Commission earned and then record the payment to the Agent so you can 1099 them at the end of the year. The way to handle this is by recording the full commission into a "clearing" account (bank account). Then you can record the payment to the agent as a vendor so you can 1099 them. Then your clearing account should net to what you received so when you record that deposit in your bank account, you book it against the clearing account. The clearing account zero's out and now you have it "bulletproof." My course covers this step by step by the way!
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!
Hi Chris. I didn't actually cover that in this video. This video in essence assumes that you don't have trust accounts. The main difference with Trust accounts is that you won't receive your whole commission from Title, because at least part of it is in the trust account. Once you've earned it, you can transfer the funds from your Trust Account go your operating account, and record it as commissions received. I do cover trust accounts in detail in the course (see the video description).
Thanks for the video! My Income statement is not showing the commissions paid for $18000. I've created the bill (after creating the invoice) and added the commissions paid to clear out the payable from the invoice. I've used the negative sign and imitated your demonstration to a T, but after generating my report, the commissions paid is still not populating. Please advise? Thanks!
If the line item on your bill is positive and going to a Commissions Paid (Cost of Goods Sold) account, then it has to show up on the P&L. Keep in mind that the P&L has to be run for a date range that covers the date of the bill.
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?
Thanks! In that case it's MUCH simpler. You receive the whole commission and deposit that into your bank account. That should match what you received in your bank account. Then you record the payments that you make from your bank account just as you would for any other expense.
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?
@@honda31611 if you go to this website: www.cpaacademy.org/archived_show/a0D1A00000wirspUAA, you will find his original video on how to set it up in qbo...Hope this helps ( it helped me tremendously). He discuss it sometime after the 1 hr mark
Hi! I have a course on this which includes a forum where you can ask questions and I'll answer them there: new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
@@nerdenterprises For some reason I don't get the same. The only options I have in the expense settings is to display tag fields or change the default payment terms. Do you know if quickbooks online moved that setting somewhere else? I have the quickbooks essentials subscription. Thanks in advance.
This is super helpful! Quick question: My agents pay a "desk fee". Is that something I would set up as an invoice and then record their payment to the invoice?
Hi and thanks!. It depends how you get paid for that desk fee. If you collect it after the fact, then yes you can send the agent an invoice. This means you will have to have a version of them set up as a customer as well as a vendor.
Thank you for this video! I do have a question though. My client pays his agents and the franchise fee, the title company doesn’t. How do I make the invoice for this situation?
The amount of the bill doesn't drive what goes on the 1099. The amount in the details that you book to the commissions expense does. The line item that zero's it out, goes to an account that is not tracked for 1099 purposes. So when you run the report that shows the commissions expense to the agent, it will show up.
The correct cost of goods categories show up in the 1099 print/efile "Map Vendor Payment Accounts" yet the data coming into that report is -0- for Cost of Goods Sales Commission.
@@donnabullock6969 make sure the vendor name is also set up for 1099s. And make sure that the line item that zero's out the bill isn't also the commissions expense account.
It works the same way as you see here in this video - you still create the clearing account and pay it from there, to reduce the amount remaining which then transfers from the clearing into your checking account. The screens look different but the process is the same.
Look carefully. Sometimes it will be zipped up, and there is a little arrow pointing at where it says "Item Details." If you find that, click on it, and it will expand so you can see it.
@@nerdenterprises If I could show you a screenshot, you'd see it is not on my Bill. I'll call QB tomorrow to see if they can resolve this for me. I still likely will sign up for your course as I need a lot of help with the year quickly running out.
@@nerdenterprises Turns out I had to upgrade again, this time to level 3. But, now I can work. Your help is much appreciated and I will sign up for your course this week.
The courses will all be found at new.nerdenterprises.com/ Hard to say exactly when they will be out. The Bulletproof Bookkeeping course is near completion. Next will be Real Estate.
Hi- When I'm doing by Bill, it doesn't allow me to add a customer on the line. Is there a way in settings to fix that? Mine is only allowing description, and amount
@@mhinit2196 Possibly. Make sure the vendor is marked 1099 eligible, and that the expense used for them is an account that is mapped as a 1099 account.
I am getting ready to convert from QBD 2012 to QBO (my predecessor was not willing to upgrade). The only thing that doesn't work for my real estate brokerage is that we have almost 165 agents and process around 200-250 transactions per month. I cannot create each property as a job under the agent name in the customer list because it will end up reaching the name limit. We do use another software to manage the properties. Any suggestions?
Hi! If you use QBO Advanced there is no limit. Also you can just set up the agents and leave the listings out of it. And you can use Airtable to track the rest of the details --> Here's a video --> Airtable for Real Estate Brokers --> ruclips.net/video/OApX8vFWYcs/видео.html
@@pureaccounting8622 It may not be done on the invoice. Depends how you recoup it. If the agents are paid at the table, and the E&O is deducted there, then you would deal with it all through a clearing account. My course on this subject covers this in great detail --> new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
Hi Seth hope you can help me solve my inquietuded. If us as a Broker received the whole commisison, #1 We can do an Invoice just with the Broker Commisison 750.000*3% = 22.5000 + Royalty 450 because we recibe 22,950 ? then in the process we register the Agent payment with a check as expense #2 We can entered this payment as Commision Paid or payable ? #3 as a COGS or Liability i? #4 In Item detail or Category Detail Setcion I was confuse with this on the expense you explain. Please Please help me .... Thanks you sooo much.🙏 Hi Seth hope you can help me solve my inquietuded. If us as a Broker received the whole commisison, #1 We can do an Invoice just with the Broker Commisison 750.000*3% = 22.5000 + Royalty 450 because we recibe 22,950 ? then in the process we register the Agent payment as check as expense #2 We can entered this payment as Commision Paid or payable ? #3 as a COGS or Liability? #4 we put this detail In Item detail or Category Detail Setcion I was confuse with this on the expense you explain. Please Please help me with this 4 question .... Thanks you sooo much.🙏
Hey there! So, you are bundling a few concepts here that need to be dealt with separately. #1 - Yes, create an invoice with two products; one for the commission and another for the Royalty. #2, 3, and 4: If you are recording a payment to the agent then there is no need to use a liability account. That would create an extra step. Record the Expense paid to the agent and in the category details is where you choose the account you want to record it to. You can use either an expense or COGS account. Your choice. My preference is COGS. What you title that account is entirely up to you, but I prefer to call it Commissions Paid to distinguish it clearly from commissions earned or received. I hope this helps! Also, I do have a whole course on this: www.nerdenterprises.com/real-estate-brokers-agents-quickbooks-online
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.
Hey Cyrus! Thanks so much. I am so glad you enjoyed this.
Check out my course here --> new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
@@nerdenterprises Thank you. Let me have a look.
Thank you for the video. One question. When setting up the "Commissions Paid" as an expense. What is the "Detail Type"?
Fantastic video !!, much needed, thank you
Thank you Dan! You might want to check out the course, which just went live a couple of weeks ago:
new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
Awesome! Do you have a video showing how to do this using the bank feed?
Not on RUclips but we have a whole course on all of this. Check the description of this video for the link 🤓.
Thanks!! I definitely want to invest in this. Would it also give insight on how to correct the books if they have been done incorrectly for 2 -3 years? I’ve only been working on them for 1 year, but I want to fix everything to provide more value and insight on the company’s financials.
@@talayahtownsend3565 Not specifically, but once you understand what things should look like, you can clean things up by using the balance sheet as your checklist and getting everything to look right from that point forward.
You know what things SHOULD look like, so you go back and untangle things in the cleanup years and then roll forward from there.
The course also comes with a Slack Community where you can ask questions and we can help you there.
Great tutorial, does this also apply to QB Simple Start? Thank you
Thank you. Essentials has some limits, but most of this should work. You won't have 1099 support when the time comes. It's probably worth it in the long run to upgrade to Plus at some point.
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?
You could do it the same way and it would work, but since you're paying it yourself, you can just record a check from your bank account to pay the agent.
@@accountingmatrix Would I still create the customer invoice you show in the video? Or skip that step entirely?
@@kristyn3385 Yes. Create the invoice to capture the income. Instead of depositing to the clearing account, you can just deposit into your checking account, because that is the full and actual amount you'll receive. Then you pay the agent as in the real world, from your checking account.
Thank you!
Thanks for the sharing and it is possible you make the same video regarding tax filling ?
Awesome - Thank you!
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?
I don't know about "automatic." Every deal is different, so each agent payment will vary. Hard to automate that, but have a look at Relay Financial app.relayfi.com - you can pay agents via ACH next day with no fees. Basically you would enter a bill for what ever the agent is owed on each deal, and in a tap or two on the mobile app, yo can pay them.
that is a great oppertunity. if you need any assistant ( free of cost) then let me know will assist you..
Thank you for this video.
Thanks Tamara!
Really helpful video. Thank you so much!!!
Thank you!
I was so close to getting this set up but I think I may have the wrong version of QBO. When adding "Agent Commissions Payable" as a service, I do not have the second part under "Purchasing Information" to add the Expense Account. Was this a change or do I have the wrong QBO? Currently on QBO Simple Start. Love these videos!
You have to check the box that says, "I purchase this...."
If that option isn't there then you may need to upgrade. Do you know what version you're on?
@@nerdenterprises Simple Start is what I'm seeing under my subscriptions. I wonder which upgrade I need to get the needed feature. The next levels are Essentials > Plus > Advanced. Would you happen to know?
@@joegarcia5570 Get Plus. I never use Simple Start or Essentials.
I'm now on Plus. In case anyone is having trouble like I did, I had to turn the toggle switch on in Settings for Expenses and Sales.
@@joegarcia5570 Yes! In the full course I have a lesson where I walk you through each and every setting to make sure you have what you need turned on.
Hello ! Do you have a most updated video about REAL ESTATE . I’m doing the broker side
Hi! Not much has changed - the accounting certainly still works the same. The QuickBooks Online interface has changed, but not the fundamentals. I do have a course that goes in depth on all of this, which was recorded last year:
You can check it out here: nerdyurl.com/brokers-agents
Of course if you have a specific question, please let me know and I am happy to answer.
Can you make a video for real estate agents?
Can we do this by class instead of customer?
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?
Thank you! I think you would have to look closely at how your agreement with the cooperating broker is structured.
If you are the listing broker, and you are splitting the commission with them, then you would set up that cooperating broker just like an agent that you pay out. And like an agent you set them up as a vendor, track the commission to them, and then you can get the reporting you need to 1099 them.
If you are both the brokers of record on the listing, and you never see thier share, then I can see making a case for only reporting your portion, but this does not sound like that scenario.
@@nerdenterprises Thanks for the quick response. Yes, I was the only broker of record on the listing. I do have them set up as a vendor so I can send out 1099 to them. So for my edification, I sounds like I need to create a sales receipt in QBO for my client (the seller) with the TOTAL commission earned (reason being is that the title company sent their commission split per the agreement directly to the buyer brokerage - I never saw it come to any of my accounts).Then, I need create an expanse for the buyer broker with a payment to them as a vendor who will receive a 1099. Let me know if that is correct.
Thank you this was a great tutorial on how to report the commission income and breakdown in Quickbooks.
Thank you!
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?
You convert the % to decimals by simply moving the decimal 2 places to the left. So 2.5% becomes 0.025. I just entered that in the rate column in a sales receipt with no trouble at all.
Is there a way to turn off the rounding? It will let me enter .025 but it automatically rounds it to .03.
Mine doesn't do that, so I'm not sure, but check in the settings area.
@@tonyatoomey5244 Which version of QuickBooks are you using?
See my screenshot here (it should work) 🤜🏽 nerdenterprises.notion.site/QBO-Sales-Receipt-Rate-with-Decimals-5c51cb4603aa435cb78ae4d83e5a0675
@@nerdenterprises yes, your link has what I'm trying to do. I looked in settings-advanced - format, but I can't find it anywhere else? I'm using the online simple start with payroll. Apparently, the desktop version has a slider to turn off rounding, but I don't see that in the online version? Thank you for your help.
OMG thank you so so much for this video!!! This is awesome stuff and exactly what I was needing :-)
Thank you! Let me know if I can help with anything.
You might like this (Coming Soon)...
new.nerdenterprises.com/bulletproof-bookkeeping-with-quickbooks-online-for-real-estate-brokers
Thank you!! Great video!! Should we still set up properties as "jobs" under the agents as a sub category?
You can. At the very least the properties should be set up in the customer list. Whether or not you want to put them as sub-customers under agents is up to you and what kind of reporting you want. If it's possible you could get that listing again under another agent, then you may want to track agents another way. In fact now with QuickBooks Online Advanced which has custom fields, you could track agents that way.
@@nerdenterprises thank you for the reply! love these video tutorials. Wish the courses were more affordable for the real estate course (Im just a small business) Thanks for what you do post though! Much appreciated!
@@nancymalski3603 I get it. I figured for lifetime access to a resource like that it was a sweet deal!
@@nerdenterprises absolutely a sweet deal for lifetime! Some day! :-) But Thanks so much for what you do post!
What about agent expenses - to have a reports for the agent but not affecting the books for the broker?
that is a great oppertunity. if you need any assistant ( free of cost) then let me know will assist you..
When we pay our agents using a bill and bill payment, the check doesn't print the memo or the breakdown of the line items on the bill... e.g. the property address of the commission check.. or full commission and then the deductions like franchise fees as line items. Am I missing something or is it not possible?
I honestly can't speak to this. I haven't printed a check in years. We pay everything and everyone electronically. It's faster, safer, and more secure!
Great video! Is there one from the Agents prespective to record Commission income?
Hi sorry, not yet! I am releasing the course this week, and I am going to add a few lessons in there to address the differences from brokers to agents.
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?
You still need to show the Gross Commission earned and then record the payment to the Agent so you can 1099 them at the end of the year.
The way to handle this is by recording the full commission into a "clearing" account (bank account). Then you can record the payment to the agent as a vendor so you can 1099 them. Then your clearing account should net to what you received so when you record that deposit in your bank account, you book it against the clearing account.
The clearing account zero's out and now you have it "bulletproof."
My course covers this step by step by the way!
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!
Hi Chris. I didn't actually cover that in this video. This video in essence assumes that you don't have trust accounts. The main difference with Trust accounts is that you won't receive your whole commission from Title, because at least part of it is in the trust account. Once you've earned it, you can transfer the funds from your Trust Account go your operating account, and record it as commissions received.
I do cover trust accounts in detail in the course (see the video description).
As to the overages, record the difference received as a liability. Then you can refund the money and book it against that liability to pay it off.
@@nerdenterprises Excellent, I'll have a look today. Thanks again for your videos, very clear and concise!
@@chrisawalsh81 Thank you Chris!
Thanks for the video! My Income statement is not showing the commissions paid for $18000. I've created the bill (after creating the invoice) and added the commissions paid to clear out the payable from the invoice. I've used the negative sign and imitated your demonstration to a T, but after generating my report, the commissions paid is still not populating. Please advise? Thanks!
If the line item on your bill is positive and going to a Commissions Paid (Cost of Goods Sold) account, then it has to show up on the P&L. Keep in mind that the P&L has to be run for a date range that covers the date of the bill.
@@nerdenterprises Wow, yes it was a date issue. Thanks so so much!!
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?
Thanks! In that case it's MUCH simpler. You receive the whole commission and deposit that into your bank account. That should match what you received in your bank account.
Then you record the payments that you make from your bank account just as you would for any other expense.
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?
Yes. Your situation is much more straight forward. You just record a check from your bank account to pay the agent.
@@accountingmatrix Do you happen to have a video for this scenario? Thank you so much.
@@honda31611 if you go to this website: www.cpaacademy.org/archived_show/a0D1A00000wirspUAA, you will find his original video on how to set it up in qbo...Hope this helps ( it helped me tremendously). He discuss it sometime after the 1 hr mark
Can you help me learn this better please. Do you consult with companies?
Hi! I have a course on this which includes a forum where you can ask questions and I'll answer them there:
new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
In my bill, I only have categoty details. there is no item details. How do I add that?
Hi! You have to turn the option on in your settings.
See screenshot here --> nerdyurl.com/show-items-table
@@nerdenterprises For some reason I don't get the same. The only options I have in the expense settings is to display tag fields or change the default payment terms. Do you know if quickbooks online moved that setting somewhere else? I have the quickbooks essentials subscription. Thanks in advance.
@@NHSpaceCoastExperts Essentials is very limited. You probably need to upgrade to Plus.
This is super helpful! Quick question: My agents pay a "desk fee". Is that something I would set up as an invoice and then record their payment to the invoice?
Hi and thanks!. It depends how you get paid for that desk fee. If you collect it after the fact, then yes you can send the agent an invoice. This means you will have to have a version of them set up as a customer as well as a vendor.
How would you classify if they are paying out of commission?@@nerdenterprises
@@tiffanyburris1155I can help with this if you have not figured it out yet
Thank you for this video! I do have a question though. My client pays his agents and the franchise fee, the title company doesn’t. How do I make the invoice for this situation?
In that case you simply record those payments out of the bank account they are paid from.
Help with 1099. The bill entered zeroes out therefore the agent's commission balance shows as -0-. Therefore no 1099 balance.
The amount of the bill doesn't drive what goes on the 1099. The amount in the details that you book to the commissions expense does.
The line item that zero's it out, goes to an account that is not tracked for 1099 purposes.
So when you run the report that shows the commissions expense to the agent, it will show up.
@@nerdenterprises So I need to designate the specific cost of goods accounts as a 1099 account?
@@donnabullock6969 yes, if you're using QBO to do the 1099s.
The correct cost of goods categories show up in the 1099 print/efile "Map Vendor Payment Accounts" yet the data coming into that report is -0- for Cost of Goods Sales Commission.
@@donnabullock6969 make sure the vendor name is also set up for 1099s. And make sure that the line item that zero's out the bill isn't also the commissions expense account.
For Quickbooks Pro desktop, how would I show the liability to the agent as being paid from escrow?
It works the same way as you see here in this video - you still create the clearing account and pay it from there, to reduce the amount remaining which then transfers from the clearing into your checking account. The screens look different but the process is the same.
Hi, When I create a new Bill, it does not show me "item details" just the "category" section. What am I doing wrong? Thank you
Look carefully. Sometimes it will be zipped up, and there is a little arrow pointing at where it says "Item Details." If you find that, click on it, and it will expand so you can see it.
@@nerdenterprises If I could show you a screenshot, you'd see it is not on my Bill. I'll call QB tomorrow to see if they can resolve this for me. I still likely will sign up for your course as I need a lot of help with the year quickly running out.
Supposing I just used Category and placed the commissions there instead, would that skew my books?
@@lannonstonerealtyllc7121 check your settings click here ==> nerdyurl.com/show-items-table
@@nerdenterprises Turns out I had to upgrade again, this time to level 3. But, now I can work. Your help is much appreciated and I will sign up for your course this week.
When are the full courses coming out, and where can we find them??
The courses will all be found at new.nerdenterprises.com/
Hard to say exactly when they will be out. The Bulletproof Bookkeeping course is near completion. Next will be Real Estate.
Property Management with QuickBooks Online is now live --> new.nerdenterprises.com/store
Hi- When I'm doing by Bill, it doesn't allow me to add a customer on the line. Is there a way in settings to fix that? Mine is only allowing description, and amount
Hi! It's in the settings - Expenses. You have to turn on the feature to track expenses by customer.
@@nerdenterprises THANK YOU!
@@nerdenterprises Seems this feature is only available with the Plus or above account.
@@cullumstirling I am sure that's true. I never recommend anything less than Plus unless your needs are super simple.
What version of quickbooks online are you using for this example?
QBO as well. If you need any support then let me know..
is it possible to do quick books online and share with the broker in another state
You can share it with anyone anywhere. That's the beauty of QuickBooks Online 😉
Do you have this for QB Mac desktop?
I don't, sorry. Most Mac users I work with switch to QB Online.
@@nerdenterprises Thanks! I followed on my desktop however when I tried to pull a 1099 it comes blank for the vendor. Am I missing a step?
@@mhinit2196 Possibly. Make sure the vendor is marked 1099 eligible, and that the expense used for them is an account that is mapped as a 1099 account.
This example is for a plus account
Yes. I always use QuickBooks Online Plus or QuickBooks Online Advanced.
Yes, that is a great oppertunity. if you need any assistant ( free of cost) then let me know will assist you..
I am getting ready to convert from QBD 2012 to QBO (my predecessor was not willing to upgrade). The only thing that doesn't work for my real estate brokerage is that we have almost 165 agents and process around 200-250 transactions per month. I cannot create each property as a job under the agent name in the customer list because it will end up reaching the name limit. We do use another software to manage the properties. Any suggestions?
Hi! If you use QBO Advanced there is no limit.
Also you can just set up the agents and leave the listings out of it.
And you can use Airtable to track the rest of the details --> Here's a video --> Airtable for Real Estate Brokers --> ruclips.net/video/OApX8vFWYcs/видео.html
@@nerdenterprises Also, we collect E&O from the agent for each transaction. How would you account for that on the invoice?
@@pureaccounting8622 It may not be done on the invoice. Depends how you recoup it. If the agents are paid at the table, and the E&O is deducted there, then you would deal with it all through a clearing account.
My course on this subject covers this in great detail -->
new.nerdenterprises.com/bulletproof-bookkeeping-with-qbo-for-re-brokers-sales
that is a great oppertunity. if you need any assistant ( free of cost) then let me know will assist you..
@@nerdenterprises I really don't want to pay for the full course when I have a couple of easy questions.
Hi Seth hope you can help me solve my inquietuded. If us as a Broker received the whole commisison,
#1 We can do an Invoice just with the Broker Commisison 750.000*3% = 22.5000 + Royalty 450 because we recibe 22,950 ?
then in the process we register the Agent payment with a check as expense
#2 We can entered this payment as Commision Paid or payable ?
#3 as a COGS or Liability i?
#4 In Item detail or Category Detail Setcion I was confuse with this on the expense you explain.
Please Please help me .... Thanks you sooo much.🙏
Hi Seth hope you can help me solve my inquietuded. If us as a Broker received the whole commisison,
#1 We can do an Invoice just with the Broker Commisison 750.000*3% = 22.5000 + Royalty 450 because we recibe 22,950 ?
then in the process we register the Agent payment as check as expense
#2 We can entered this payment as Commision Paid or payable ?
#3 as a COGS or Liability?
#4 we put this detail In Item detail or Category Detail Setcion I was confuse with this on the expense you explain.
Please Please help me with this 4 question .... Thanks you sooo much.🙏
Hey there!
So, you are bundling a few concepts here that need to be dealt with separately.
#1 - Yes, create an invoice with two products; one for the commission and another for the Royalty.
#2, 3, and 4:
If you are recording a payment to the agent then there is no need to use a liability account. That would create an extra step.
Record the Expense paid to the agent and in the category details is where you choose the account you want to record it to.
You can use either an expense or COGS account. Your choice. My preference is COGS.
What you title that account is entirely up to you, but I prefer to call it Commissions Paid to distinguish it clearly from commissions earned or received.
I hope this helps!
Also, I do have a whole course on this:
www.nerdenterprises.com/real-estate-brokers-agents-quickbooks-online
@@nerdenterprises Excelent I'm doing it right . I would take a look a the course Thank you very much