The income statement is a powerful tool for assessing how your business is doing. As a realtor, whether you have incorporated or not, your income statement provides the details needed to evaluate how your business is doing this month, this quarter, or this year.
We often speak with realtors who know what their total commissions are for the year, but that is not the full picture. Commissions are a great starting point, but if you spend $400,000 on dues, advertising, brokerage fees, vehicle and phone expenses etc. to bring in $475,000 of commissions, you need to be aware of both of these amounts to understand the health of your business.
The number we really need to look at is the profit before tax. We will deep dive into what this means for you. We use the profit before tax amount to make a plan for reaching your current or future goals. We look at what a small increase in either commissions or expenses can do to your bottom line. We also incorporate tax planning into this discussion so you are prepared.
How nice would it be to be in control of your taxes while meeting your wealth and financial goals? You can do both!