The tasks and processes surrounding the close of a commercial real estate transaction can leave much to be desired for all the parties involved. I’ve seen the documents and forms many brokers use to manage invoices and commission payments, and it’s not always pretty.
In describing the process of submitting a deal through their transaction process, brokers regularly use terms like “black hole.” On the operations side of the business, administrators and managers handling the reconciliation of invoices to commission payments have described their difficulty in doing so as CRE’s “dirty little secret.” Definitely not the terms you want to use to describe one of the most critical processes in running a successful brokerage.
In fact, brokers have told me that pretty significant checks will arrive at their office, prompting the office admin to email everyone to determine whose it is or which deal it pertains to. “Dirty little secret” indeed. Most offices have accounting systems and software, but there’s still much that’s left out when it comes to the commissions and reconciliation process for CRE transactions.
Fortunately, I’m here to tell you that you can say goodbye to all that frustration and uncertainty. Apto has just launched a new product, Apto Commissions, to give your brokerage complete financial transparency with point-in-time reporting for the whole team. You’ll be able to forecast revenue, pull reports on performance, generate and track invoices, and pay out commissions with ease from one single system.
To give you a better idea of how this works, let’s take a look at how each member of your team is involved at the end of a deal.
Brokerage leadership is mostly concerned with visibility into revenue and performance of their brokers. Apto Commissions enables the managing director to achieve more easily this by eliminating the menial tasks required to track, understand, and communicate deal-level revenue, commissions and brokerage expenses. Apto Commissions gives management a single place to see, analyze, and present deal-level financials—freeing them up to focus on executing new deals and assisting and coaching their brokers to help them reach their goals.
Having just completed a deal, the broker is interested in how much they will be receiving and when, likely resulting in regular inquiries to see where things stand. Apto Commissions provides this information in the same system the broker uses to manage and close their deals, increasing efficiency and saving time. With enhanced visibility into their commissions and invoices, the broker is no longer burdened with chasing down admins and transaction coordinators to find out when they’ll be getting paid. With a renewed confidence in the payment schedule, they can focus on new deals.
Accounting has a lot to worry about. From performance of cash and accrual management functions, to general ledger accounting and financial reporting, they require accurate documentation of deal-level financials. Apto Commissions provides accounting teams with visibility into the deal-level details that make up the general ledger, improving their confidence in reported results and reducing time spent on reconciliation and audit. Additionally, by having access to deal-level details, accounting can deliver more strategic performance insights about individual business units and even individuals within them.
This is just a brief overview of how Apto Commissions helps solve some of the key pain points experienced across the entire brokerage. Eliminate inefficiencies created by static forms and antiquated processes, and empower your brokerage with unparalleled transparency. With better visibility and fewer questions, brokers can focus on executing existing business, and bringing in new business. Win win.