How real estate accounting usually works
Good real estate accounting starts with a fast health check across your trust account, sales ledger and rent roll. Your accountant reviews the business structure, software connections (e.g., PropertyMe to Xero), current reconciliations, commission pipelines, unpaid settlements and upcoming compliance dates.
Work then moves in three layers:
- Immediate triage: fix trust reconciliation breaks, clear settlement variances, address BAS/payroll backlogs and map fee GST settings.
- Process design: document how rent, bonds, advertising and maintenance flow; lock in month-end cut-offs; align chart of accounts to sales and property management reporting.
- Ongoing review: monthly trust recs, BAS, payroll, super, management reports, and a compliance calendar that includes audit dates and ATO obligations.
Australian rules and context to keep in view
- Trust accounting: if you handle client money, a separate trust account and an annual audit are commonly required. State rules and deadlines vary (NSW Fair Trading, Consumer Affairs Victoria, Queensland OFT, WA DMIRS, etc.).
- GST: residential rent is input taxed; your agency services are generally taxable supplies. On‑charging advertising and maintenance needs correct GST treatment.
- Payroll: Real Estate Industry Award coverage, super on commission/bonuses, allowances and payroll tax thresholds by state matter.
- Software: choose a trust platform that integrates cleanly with your general ledger to reduce manual rekeying and month‑end delays.
What to compare before you commit
Scope
Confirm the scope covers trust reconciliations, BAS, payroll, management reporting, year‑end tax and the trust audit liaison if required.
Software fit
Look for confident use of PropertyMe, Property Tree, Console Cloud or Reapit, plus Xero/MYOB/QBO. Ask for their month‑end checklist.
Turnaround and communication
Agree reporting dates around settlement cycles and rent disbursements. Clarify how issues are flagged and fixed during peak periods.
Commercial fit
Compare fixed fees vs hourly, meeting rhythm, KPI dashboards and whether you need compliance only or CFO‑style advisory.
The real estate software stack
Most agencies run a trust platform for client money and a general ledger for the business. A real estate accountant helps align them so numbers tie every month.
- Trust platforms: PropertyMe, Property Tree, Console Cloud, Reapit, Property Boss.
- General ledger: Xero, MYOB or QuickBooks Online with a real‑estate‑ready chart of accounts.
- Integrations: clean bank feeds, mapped tracking categories (sales vs property management), and automated fee recognition where possible.
- Reporting: a monthly pack that joins trust recs to P&L, cash flow, arrears and pipeline insights.
KPIs and reports owners actually use
Great reporting connects operations to profit. Your accountant can automate a simple pack so you can spot issues early.
- Sales: GCI, average fee %, pipeline‑to‑settlement conversion, days to collect after settlement.
- Property management: properties under management, arrears %, churn, revenue per property, maintenance spend trends.
- Finance: monthly trust rec status, cash flow, payroll ratio, EBIT margin and variance to budget.
Best next steps
Write down the outcome you want next: clean trust recs, caught‑up BAS, payroll stabilised, clearer commissions, or a monthly board‑ready pack.
Then shortlist against that outcome. Choose the real estate accountant who explains the workflow, shows example reports and sets a reliable monthly cadence.
If you need a deeper dive, explore these related pages: real estate bookkeeping, real estate payroll, real estate tax accountant, or broader hubs like bookkeeping services, tax accountant, BAS agent services and payroll services.
Frequently asked questions
Do real estate agencies need a trust account and audit in Australia?
If your agency handles client money (for example rent, bonds, deposits or settlements), a separate statutory trust account and an annual audit are required in most states. Deadlines and auditor rules vary, so check your regulator (e.g., NSW Fair Trading, Consumer Affairs Victoria, Queensland OFT, WA DMIRS, etc.).
How does GST apply to residential rent, management fees and recoveries?
Residential rent is input taxed (no GST to the tenant). Your management, letting and admin fees are generally taxable (10% GST). Advertising and maintenance recoveries often attract GST when you are the supplier to the landlord. Get advice for commercial leases and principal vs agent treatment.
What payroll issues are common for real estate agencies?
Watch award coverage (Real Estate Industry Award MA000106), super on commissions/bonuses, car allowances, payroll tax thresholds and STP accuracy. Define policies for commission‑only arrangements and settlement timing.
Which software should our agency use?
Typical combinations are PropertyMe, Property Tree, Console Cloud or Reapit for trust accounting, and Xero, MYOB or QuickBooks Online for the GL. The best choice is the one your team can reconcile monthly and that integrates cleanly to your ledger and reporting.
How do you onboard a new real estate client?
We run a short diagnostic, repair urgent issues (trust recs, BAS, payroll), document the process and close the month with a reconciled trust account and a clear KPI pack. From there, we maintain a predictable reporting and compliance calendar.