Health experts say it’s a good idea to get in 10,000 steps each day. But when it comes to keeping your business healthy, success lies in 18 key steps to improve and protect your fiscal fitness. Are you taking these steps to increase sales and commissions, improve profitability and give you peace of mind in your real estate business?
- Use a profit and loss statement to monitor your income and expenses on a monthly basis.
- Know how much you want to earn – and need to earn.
- Have a written budget for your expenses and stick to it.
- Separate your business and personal finances, including separate checking accounts and credit cards.
- Pay your estimated taxes each quarter.
- Invest in a good financial adviser and accountant.
- Save regularly – at least 10 percent of your take-home pay is a good rule of thumb.
- Track your business miles so you can claim the tax deduction.
- Keep receipts for business expenses organized.
- Understand how to review your financials and work with your accountant if you have questions.
- Pay yourself a salary each month.
- Use The Millionaire Real Estate Agent (MREA) chart of accounts. (Download .xls file)
- Watch your margins and compare them with MREA standards.
- Know the average cost of each of your transactions.
- Have a good understanding of your fixed business costs – even if you make no money.
- Implement an active profit share tree.
- Reduce concerns about your financial future by working with your advisers and engaging in proper planning.
- Pay off consumer debt and live as debt-free as possible.
Following these steps will help you rein in your personal financial concerns and build a bright future for your own portfolio and for your business. Best of all – you can start today!