The best advice I received as a newbie agent came from my father. No, dear ol' dad was not a real estate agent, he was an insurance agent. He didn't give me real estate advice, he gave me BUSINESS ADVICE, watch your money and SAVE EVERY RECEIPT.
I want to talk to about the LEAST DISCUSSED ASPECT OF YOUR REAL ESTATE BUSINESS.
$$$ MONEY MONEY MONEY $$$
"Running" your real estate business earns you the ominous title of CFO, Chief Financial Officer.
Under the standard real estate brokerage model, agents are not employees of the brokerage. Real estate agents are INDEPENDENT CONTRACTORS. If you aren't sure what an independent contractor is, I suggest you quickly educate yourself on your new status as self-employed. Here's a handy definition and a link to a website you will become VERY FAMILIAR WITH!
Gone are the days of someone handing you a paycheck with all of those pesky deductions...no more Federal or State with-holdings, no more FICA...no missing money at all.
Don't sprain your hip doing the happy dance just yet! 
Those pesky deductions haven't disappeared, accounting for them just shifted to YOUR RESPONSIBILITY. Instead of the pay as you go system, you are now on the pay on demand program...April 15th.
From day one (the day you order and pay for your pre-licensing course) the finances surrounding your real estate career are a PRIMARY ASPECT OF YOUR NEW BUSINESS.
Every business has a bookkeeper or an accountant, either you are going to assume that position for yourself or you are going to hire someone to do the job for you. Either way, there are some things that you need to keep track of on an on-going basis.
Income and Expenses. Income, how much you earn and when you earn it. Expenses, how much you spend and what you spend it on.
If you can afford to do so, investing in some sort of basic accounting software, like Quickbooks, would be very helpful. If that's not possible, setting up a simple Excel spreadsheet will work too.
Keeping good records throughout the year will make your job, or your accountant's job, a lot easier at the end of the year.
Here is a list of some of the common expenses associated with your new career that you will want to track:
*mileage and/or fuel & maintenance costs of operating your vehicle for BUSINESS PURPOSES
*office fees, professional association fees, MLS membership fees
*E&O insurance
*cost of continuing education
*client appreciation gifts
*home office
*office supplies (stamps, pens, paper, printer ink)
*office equipment (computers, routers, copiers, scanners, fax machines)
*advertising costs
*marketing costs
A few helpful tools to consider:
*a mileage tracker app for your smartphone
*a scanner for creating a digital copy of all of those receipts (now conveniently printed with disappearing ink)
*a separate bank account or credit card (or both) from which to pay real estate related items, keeping these expenses separate from your personal expenses just makes tracking simpler
I'm not an accountant or a tax advisor. This information is presented for informational purposes only and should not be relied upon in the place of professional advice. Subject to errors and omissions.
Consult your tax advisor.
Remember, you are running a business and all that that entails.
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