Start 2026 tax prep now for your real estate brokerage—so audits don’t become a fire drill

The transition into a new year always comes fast—and so does tax season. Before we all slide into holiday mode, this is a great moment to tighten up your financials and set your brokerage up for a smooth 2026. A little prep today means fewer surprises (and less caffeine-fueled scrambling) later on. You can do that all with Lone Wolf Back Office.

Why tax prep matters for your real estate brokerage (hint: audits)

Tax filing is only half the story—audits are the other piece. Whether you’re doing an internal review or preparing for an external audit, the goal is simple: clean, accurate records. When transaction details are missing or expenses get tossed into the wrong category, things get complicated fast. Getting ahead now allows you to:

• Prevent last-minute cleanup
• Spot and fix issues before they escalate
• Capture deductions instead of overlooking them

Back Office moves that will put you ahead of 2026

By tightening up your processes now, you’ll set your team up for a smoother, more predictable tax season—without the scramble. Here are some tips to do just that:

Refresh your books and ensure accuracy

Accurate, up-to-date financials are the foundation of a clean audit. Take time now to confirm that every transaction—from commission deposits and recurring bills to bank reconciliations—is captured and posted correctly. Use Back Office reports to schedule monthly (or even weekly) reviews, spot anything that seems out of place, and address inconsistencies before they stack up.

Key steps to keep your books clean:

• Verify all income and expenses
• Reconcile bank and trust accounts
• Review recurring transactions

The cleaner your books are now, the faster tax prep will go later—and the easier audits will be to navigate.

Visit these links to learn more about month-end and year-end best practices with Back Office.

Clean up transaction categories

When you’re managing multiple income types and operational expenses across the brokerage, it’s easy for things to land in the wrong category. Take an intentional pass through transactions to make sure commissions, brokerage fees, marketing spend, office supplies, technology, payroll, and more are recorded accurately. Proper categorization makes year-end reporting faster, strengthens audit documentation, and helps you avoid unnecessary manual cleanup in January.

After confirming that all categories are correct, you can run a variety of reports to review your data. Learn more about those here.

Confirm commission split accuracy

Commission structures are rarely “one size fits all,” and that’s exactly why they need to be set up and verified properly in Back Office. Whether you offer tiered splits, capping models, referral bonuses, or custom agreements, now is the time to ensure the system reflects reality. Double-checking each agent’s configuration now helps prevent reporting discrepancies—and protects you during compliance reviews or audits down the road.

Learn more about how to set those up and verify them here.

Run your year-end financials

Before tax season truly starts, generate a final and complete financial picture of the year: profit and loss statements, balance sheets, and agent-level production and expense reports. These summaries help you confirm that your accounts balance, your revenue is reported correctly, and there are no financial oddities waiting to surface during an audit. Think of it as a “financial health check.”

There are several steps you need to take when closing out your fiscal year. Learn more about those steps here.

Get ahead of tax slips: 1099s/W-2s (U.S.) or T4s/T4As (Canada)

You already have the data—now’s the time to make sure it’s accurate. Verify agent payment totals, confirm addresses, and review tax classifications so your forms are ready when deadlines approach. With Back Office tracking payments automatically, you’ll be able to complete these forms quickly and confidently instead of rushing in January. It’s one of the easiest steps to take now that saves the most stress later.

Explore how to get ready for these year-end tax forms:

• 1099s (U.S.)
• W-2s (U.S.)
• T4s (Canada)
• T4As (Canada)

Looking for an easy place to start? 

Tax season doesn’t need to be chaotic. With a bit of intentional prep, your brokerage will enter 2026 organized, confident, and ready for whatever audits come your way. And yes—you’ll still have time to enjoy the holidays without bookkeeping hanging over your head.

Whether you’re in the U.S. or Canda, close out 2025 confidently and roll into 2026 fully prepared with these extra resources.

Check out more of our most popular articles to prepare for month end and year end, including federal taxes. 

Catch our webinar to discover proven year-end best practices in Back Office—from closing out financials to preparing clean data for 2026.

Want to see what an audit entails? There are a number of ways you can prepare for an inspection or audit to make the experience less stressful.