How Gross Commissions appear on your QuickBooks Online Income Statement
Commission Mapping Overview
When setting up your Brokerage, we use a standard commission mapping that a majority of Brokerages use. This setup allows for easy comparison between gross commissions and Expenses (outgoing payments) and helps calculate your Brokerage's true income as a percentage of gross commissions.
Default Accounting Mapping
(for systems like Xero/QuickBooks Online)
Income Accounts
Commission Income – Total gross commissions on all deals.
Income to the Brokerage – Fees retained by the Brokerage from agent commissions.
Cost of Sales / Expense Accounts (“Direct Cost” or “Expense” )
Commissions Paid to Agents – Full commissions allocated to agents (not net pay).
Commissions to Outside Brokers – For payments made to third-party brokerages (if applicable).
This structure ensures clarity in reporting and simplifies income tracking.
Sample Profit & Loss Statement
A typical Profit and Loss (P&L) statement—also called an Income Statement—shows a business's revenues, costs, and expenses over a specific period (e.g., monthly, quarterly, or annually). It provides insight into the company’s profitability.
Standard structure of a P&L statement
1. Revenue / Income
Gross Sales or Revenue
Commission Income
Other Income (e.g., referral fees, consulting income)
Total Revenue
2. Cost of Sales (Direct Costs)
Commissions Paid to Agents
Commissions to Outside Brokers
Referral Fees Paid
Total Cost of Sales
3. Gross Profit
(Total Revenue – Total Cost of Sales)
4. Operating Expenses
Salaries & Wages (non-commission)
Office Rent
Marketing & Advertising
Technology & Subscriptions
Professional Fees (Legal, Accounting)
etc
Total Operating Expenses
5. Operating Profit
(Gross Profit – Operating Expenses)