How we think about mortgage brokerages
A mortgage brokerage runs on two cycles at once — the deal cycle (funding, payout, claw-back risk) and the operating cycle (rent, marketing, staff). The books need to keep them separate so commission income is recognised correctly, broker splits are tracked deal by deal, and the operating P&L tells the truth about what the brokerage itself is earning. We design the chart of accounts so both views stay legible without one obscuring the other.
What makes the books different
- Commission income recognised when funded, with claw-back reserves where the lender requires
- Broker, agent, and referral splits recorded against each deal and reconciled to payouts
- Lender finder fees, marketing co-op rebates, and trailer income classified correctly for GST
- Compliance-ready records for BCFSA review, with deal-level documentation tied to the ledger
What a monthly close looks like for you
Each month we reconcile the operating accounts, post commission income against funded deals, settle agent and referral payouts, and reconcile any lender adjustments. You receive a monthly package with a brokerage P&L and an agent-level commission summary. For sole-broker corporations, the package is simpler — operating P&L, balance sheet, and a clean view of what was earned versus what was drawn.
Tools we commonly use for mortgage broker clients
QuickBooks Online or Xero as the ledger, configured to separate brokerage operations from commission flow. Finmo, Velocity, or BluMortgage for deal management — we pull the funded-deal data into the ledger monthly. Dext for receipts, Plooto for vendor payments, Wagepoint for any T4 staff, and Google Sheets for the agent split schedule.
Partners we work with
We work alongside Vancouver CPAs who understand mortgage broker tax — incorporated brokers under BCFSA rules, GST on certain referral fees, and the timing of commission recognition for fiscal year-end — and our year-end preparation hands them a closed file with deal-level support already reconciled.
A good fit if
- You run a mortgage brokerage with multiple agents or operate as an incorporated sole broker
- You need commission income, agent splits, and operating expenses cleanly separated
- You want monthly numbers that make BCFSA review and CRA year-end straightforward