California monthly bookkeeping
Keep every entity and trust account current with a recurring monthly close.
Monthly bookkeepingCalifornia · Real Estate Accounting
California real estate accounting that keeps every entity — and every trust dollar — straight.
California investors, brokerages, and property managers run on multiple entities and other people’s money. Multi-entity ledgers, broker and property-management trust records, each property’s Prop 13 base-year value, 1031 documentation, and agent commissions all need to tie — and your senior bookkeeper keeps them tied.
If your file needs our paid diagnostic first, its fee is credited in full against the cleanup. Either way, you get a fixed fee in writing before any work starts.
State rule
California rule: a broker must reconcile the separate records for each beneficiary or transaction with the record of all trust funds received and paid out at least once a month; the books keep a subledger per owner tied to the trust account. Source: California DRE, Regulation 2831.2.
§ The short version
California real estate accounting keeps each entity’s ledger, broker and property-management trust records, Prop 13 base-year values and 1031 documentation straight in your own QuickBooks file. The trust account is reconciled to each owner’s subledger at least once a month, as DRE Regulation 2831.2 requires; TechBrot never holds or disburses your trust funds.
They took something that felt overwhelming to me as a first-year business owner and made it simple.
What stood out the most was TechBrot Inc’s attention to detail.
Intuit QuickBooks Certification Level 2 and QuickBooks Workforce Certification,
§ 01 · Why California real estate books break
Three places California real estate books break.
Multi-entity, trust dollars, and California basis rules are where it goes wrong. Knowing which one you’re in tells us where to start.
01Entities
Tangled multi-entity books
An LLC per property, a holding company, a management entity — without clean intercompany entries, the consolidated picture is a guess and no single property’s return is clear.02Trust
Trust dollars not reconciled
Security deposits and client funds must stay segregated, and the DRE expects the per-owner records reconciled to the trust record at least monthly. A trust ledger that doesn’t tie is a compliance problem brokers and PMs can’t afford.03Basis
Basis & 1031 records missing
The Prop 13 base-year value drives the property-tax accrual and 1031 exchange documentation drives the income-tax outcome — and both are exactly what’s missing when the books were never built for real estate.§ 02 · What TechBrot handles
How we keep California property books and trust records.
Every engagement is scoped to your entities and properties, delivered in your own QuickBooks file by your TechBrot team, with every close reviewed by a Certified QuickBooks ProAdvisor.
01
Multi-entity ledgers
Clean books per entity with proper intercompany entries so your CPA can consolidate and each property is visible.
QuickBooks accountant02
Trust accounting (records)
Broker and property-management trust records segregated, with a record per owner or transaction reconciled to the trust record monthly per DRE Regulation 2831.2 — you control the funds; the ledger stays straight.
Reconciliation03
Property-level performance
Income and expense tracked by property and unit so you see real NOI and cash flow, not a blended number.
Monthly bookkeeping04
Prop 13 & 1031 records
Base-year value tracking per property, reset on each change in ownership, and clean 1031 exchange documentation kept for your CPA and qualified intermediary.
California overview05
Agent commission structures
Commission splits, agent draws, and 1099 reporting kept clean for brokerages — licensed agents (status under B&P Code 10032(b)) kept apart from unlicensed staff tested under AB5.
AB5 classification06
$800 franchise-tax accrual
The FTB minimum tax accrued across every entity so it’s never a surprise at year-end.
California overview§ 03 · Tools we work alongside
Connected to how you manage property.
- AppFolio, Buildium, and property-management platforms
- Stessa and rental-portfolio trackers
- Trust/escrow bank accounts reconciled to the ledger
- Bill.com for vendor and owner disbursements
- Brokerage commission and transaction systems
- QuickBooks Online or hosted Desktop — your file
We reconcile alongside the PM and brokerage platforms you already run — the books read from how you manage property.
§ 04 · How engagements work
From tangled entities to clean, audit-ready books.
Every California real estate engagement follows the same rhythm — entities and trust clean first, property performance second, advisory third.
- Step 1
Free entity & trust review
A QuickBooks ProAdvisor reviews your entities, trust accounts, and properties — at no cost. - Step 2
Written fixed-fee scope
A written scope and fixed fee within 3 business days — cleanup, monthly, or both. - Step 3
Clean entities & trust
Each entity reconciled, intercompany clean, trust records segregated and tied out. - Step 4
Monthly property results
A monthly close showing per-property performance and a CPA-ready basis picture.
§ 05 · Beyond the books
Clean entity books are the start. Knowing each property’s real return is the point.
When the entities are clean and each property’s return is visible, the decisions get clear: which property to refinance or sell, whether a 1031 makes sense, how the portfolio is really performing — answered from books that tie.
That’s where fractional-CFO advisory picks up, on cleaned-up books, in coordination with your CPA.
§ 07 · Around this page
Around California.
California QuickBooks ProAdvisor & bookkeeping
The state page: services, industries, cities and the California tax terms in one place.Real Estate accounting, nationally
The national engagement this page is the California version of — same scope, same written fixed fee.Also in California
Other California industries
California cities
Not sure where your file stands? Start with the free QuickBooks file review · how California compares: state-by-state tax quirks.
§ 08 · FAQ
California real estate accounting questions.
What does California real estate accounting include?
Clean multi-entity ledgers with proper intercompany entries, broker and property-management trust-account record-keeping, property-level income and expense tracking, Prop 13 basis and 1031 exchange records, agent commission structures, and the $800 franchise-tax accrual across entities — in your own QuickBooks file.
Do you handle real estate trust accounting?
Yes. The DRE’s regulations set the records: a columnar record of all trust funds received and paid out with a daily running balance (Regulation 2831), a separate record for each beneficiary or transaction (2831.1), and a reconciliation of the two at least once a month, documented, except in months with no activity (2831.2). Those records are kept in your books so the trust ledger ties to the trust bank account — security deposits and client funds alike. Nobody on the engagement holds, controls, or disburses your trust funds; the account stays under your control and your broker/PM compliance, and the bookkeeping behind it stays accurate.
How do you handle multiple entities and properties?
Real estate runs on entities — often an LLC per property plus holding and management companies. We keep each entity’s books clean with correct intercompany entries so your CPA can consolidate and each property’s NOI and cash flow are visible. We also accrue the $800 California franchise tax on every entity so it never surprises the books.
What about Prop 13 basis and 1031 exchanges?
We track each property’s Prop 13 base-year value — the property-tax base the county assessor resets to market value on a change in ownership — and keep clean, organized records for 1031 like-kind exchanges so your CPA and qualified intermediary have exactly what they need. The exchange structuring, the timelines, and the tax positions are theirs to handle; we keep the books and documentation behind them accurate and audit-ready.
Do you work with brokerages and agent commissions?
Yes — we keep commission splits, agent draws, and 1099 reporting clean for brokerages. Licensed agents are an exception to the AB5 ABC test: for certain real estate licensees, employee or contractor status is governed by Business and Professions Code section 10032(b) instead (California Labor & Workforce Development Agency), while unlicensed staff such as assistants and transaction coordinators are tested under AB5. The books keep the two groups apart so each is paid and reported the right way. The classification determination itself is your CPA’s or employment attorney’s; see our AB5 page.
Do you work in my own QuickBooks file?
Yes — your file, your data, in QuickBooks Online or hosted Desktop, with a senior bookkeeper assigned to your file, and every close reviewed by a Certified QuickBooks ProAdvisor before it reaches you, connected to your PM and brokerage platforms rather than proprietary software.
Do you serve out-of-state investors with California property?
Yes — California-property owners based elsewhere still face the $800 franchise tax per California LLC, California-source income, and Prop 13 basis tracking. We keep the California entity books clean and coordinate with your CPA on the multi-state filing.
California real estate starts here