Real Estate Balance Sheet Template

Next, work through the Liabilities Detail sheet. Enter any outstanding invoices you owe, tax liabilities, and — critically — any client funds you're holding. Earnest money deposits and tenant security deposits belong on this sheet as liabilities because they're not your money until disbursed or earned. Once both detail sheets are complete, the main Balance Sheet pulls all figures automatically and checks that assets equal liabilities plus equity. If the equation doesn't balance, a flag appears and you can trace back to whichever entry is off.

For real estate agents and small brokerages, the asset side is usually simpler than other industries — you're a service business, so there's no inventory. But a few line items need specific attention. Commissions receivable can be significant during busy seasons, and they're real assets until collected. Client trust funds and earnest money held in escrow are an asset in one sense but must be matched dollar-for-dollar on the liability side — confusing these categories is a common error. Vehicles and technology equipment depreciate, and tracking book value separately from purchase price gives you a more accurate picture of what you actually own.