If you follow the definitions and guidelines that are included with each of the accounting categories, you will then have a way to compare your sales business's financial performance with those of other agents and with the models proven in the MREA book and related materials.ΔΆ Income Residential Income Includes residential and commercial listing, sales, lease, customer transaction fees and bonuses, less outside referrals paid or concessions given Includes customer transaction fees and bonuses, less outside referrals paid or concessions given Listing Income Sales Income Referral Income Leasing Income Total Residential Income Commercial Income Includes customer transaction fees and bonuses, less outside referrals paid or concessions given Listing Income Sales Income Referral Income Leasing Income Total Commercial Income Other Real Estate Income Total Income (GCI) Sum of all income earned from all transactions by the individual, team or group members. These of course should be discussed with your CPA or tax adviser. While it should reflect your general financial accounting and general ledger activity, it may not always reflect the way you make your payments or the way you make special adjustments for tax purposes. Final Note: This MREA is first and foremost a tracking tool to use in tracking your business expenses as they relate to the operation of your real estate sales business. We have also included the suggested items in the notes section of the chart of accounts. For these agents, we have created a numbering system that allows for additional tracking. We understand that there may be a few higher-end users who will customize this chart of accounts at a much deeper level. The beginning agent can begin by tracking the leftmost categories (Income, Cost of Sales, Expenses, and Profit) and as they develop more experience tracking their numbers, they can move further right and into more detail. As a result, we have carefully chosen only the most important items for you to track on a monthly basis. Our hope is that agents will keep their tracking simple and their definitions clear. At the same time, we want to be very clear about what goes in each category. We followed the wisdom of our chief financial officer who advised us to keep our tracking as simple as possible. Our goal is to make it simple and clear so that this chart of accounts can be followed and used by anyone from a new agent to a Mega Agent team. This updated version represents a significant departure from the original Profit and Loss Statement.
We have reorganized and recategorized the original version into ten revised Budget Model categories.
1 2009 Keep Your Tracking Simple and Your Definitions Clear Please Read: This revision represents an update to the original Millionaire Real Estate Agent (MREA).