Commission Income: Can be divided into residential, commercial, or other categories as required. A similar change should then be made in the Commission Expense category to mirror this alteration: i.e., Commission to Salespeople (Res.), Commission to Salespeople (Com.).

Referral Income:Income received from outgoing referrals. Minimal expense is incurred to generate this revenue, so it is an interesting category to assist with bottom line results.

Contribution of Owner: Isolating the owner’s income and expenses provides a more complete picture of the brokerage’s financial strength. Further, this figure is typically removed for purposes of override payments to a manager. The worksheet provides a corresponding category isolating the owner’s payout under commission expense so that brokerage performance can be analyzed separately.

Other Income: Refers to property management, appraisal, and other incidental income. It provides an account for miscellaneous revenue sources so that pure commission income is accurately isolated for analysis and tracking purposes. A more detailed set of accounts is required with brokerages having specific departments. Other Income can also include penalties and interest charges on overdue salesperson accounts.

Desk Fee Income: All income from desk fee arrangements is entered on this line. This would apply to total desk fee offices as well as offices providing variable plans that have one or more persons on a desk fee.

Commission (Other Brokers): This payout factor is an important aspect of management analysis. Higher payouts can be a signal of weakened market position.

Referral Commission (Other Brokers): This referral payout references monies received to which referral cheques must be issued to other brokers. The total income received is not specifically isolated: it is included in Gross Commission Income. However, it is possible to estimate total income generated from such referrals by merely grossing up the figure. For example: Referral Commission to Other Brokers: $4,500, Usual Split: .25 of Gross; therefore, estimate of gross income generated by incoming referrals: $4,500 ÷ .25 = $18,000.

Adjusted Gross Income: This is the basis for comparison of expenses to gross income. The adjusted gross is used as it is a pure figure of income to the brokerage, no other brokerage dollars are involved.