5 Costly Accounting Mistakes Real Estate Professionals Make (and How to Avoid Them)

Whether you're a seasoned real estate investor or a full-time agent juggling multiple deals, one thing is true: if your accounting isn’t in order, your business is leaking money.

Most real estate pros didn’t get into the industry because they love spreadsheets or reconciliations. But ignoring the numbers—or worse, guessing—can cost you big in taxes, missed deductions, and poor decision-making.

Here are five of the most common accounting mistakes I see in the field—and how to avoid them.

1. Mixing Personal and Business Expenses

Swiping the same card for gas, groceries, and a contractor payment? This is a red flag for the IRS and a major headache at tax time.

Fix it:

Open a dedicated business bank account and credit card. Keep everything separate, clean, and easy to track.

2. Not Categorizing Expenses Properly

“Miscellaneous” is not a real strategy. If you're categorizing repairs, capital improvements, and meals under the same umbrella, you’re likely misrepresenting your tax liability—and confusing your CPA.

Fix it:

Use a chart of accounts specifically designed for real estate professionals. That way, every dollar goes exactly where it should.

3. Forgetting to Track Mileage

If you drive to showings, walk properties, or attend closings, you’re leaving serious money on the table by not tracking mileage.

Fix it:

Use an app or keep a log. The IRS standard mileage rate adds up quickly—especially over a full year.

4. Not Reconciling Accounts Monthly

It might feel tedious, but skipping reconciliations means your books might not match your bank—leading to errors, missed deductions, or even overreporting income.

Fix it:

Schedule a recurring monthly date with your books (or hire someone who will). Consistency is key.

5. Waiting Until Tax Time to “Figure It All Out”

Scrambling through receipts in March is not a tax strategy. It’s a stress-inducing, deduction-losing mess that leaves money on the table and doesn’t help you actually run your business during the year.

Fix it:

Treat accounting as a regular business task, not a seasonal panic button.

Ready to Get Organized?

If this list felt a little too familiar, don’t worry - you’re not alone. I’ve created a free checklist specifically for real estate investors and agents who want to get their books in order and stay ahead of tax time all year long.

👉 [Grab your free Real Estate Accounting Checklist here!]

It’s simple, actionable, and built for busy professionals like you. Let this be the first step toward clean books, confident decisions, and a more profitable year.