Where Most Real Estate Agents Get Bookkeeping Wrong

By Andy Mulholland

He has a background in leading a top real estate team for over a decade and an understanding of the critical role of clear financials, Andy, along with his wife Ellyn, a seasoned real estate CFO, co-founded Simple-Numbers.

Let me ask you this: Do you really know where your money is going? you might not know that it could be a huge problem. I know it’s easy to think, “Hey, I’m making sales, so I must be doing okay.” But are you actually tracking the costs that truly impact your bottom line? If not, you could be leaving serious money on the table.

As a retired real estate team leader turned bookkeeping expert, I’ve seen it all. I know the pain of not having a clear financial picture. And I’m here to help you fix that.

The real cost of generic bookkeeping. In real estate, using a one-size-fits-all chart of accounts is a recipe for confusion. You deal with unique expenses like agent commissions and broker fees—things that don’t fit neatly into a generic system. So, what happens? You end up with messy, unreliable numbers that don’t show the true health of your business. Without a clear picture, it’s impossible to make the right decisions.

Why tracking the cost of goods sold matters. Here’s the thing: In real estate, the Cost of Goods Sold (COGS) isn’t just a random number. It’s made up of agent commissions, broker splits, and other direct costs tied to revenue. Ignoring these costs means you don’t know your real profit margin. You’re missing key insights, like how much you’re paying agents on average. You can’t see trends. And, let’s be honest, you can’t really know if you’re making enough profit.

Get clear, get profitable. Imagine being able to see exactly how much you make after every deal. Imagine knowing your numbers down to the last dollar. You could control costs, find new opportunities, and finally plan your exit from production—without sacrificing profits. When your bookkeeping matches your industry’s needs, you make smarter moves.

If you need help in making sure your sales are tracked properly, I can help you. Stop leaving your profits to chance. Let’s make your real estate business as profitable as it can be.