Financial benefits platform Tongo has added a partner in april, which provides a tax management solution for real estate agents.
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Tongo, a financial benefits company for the commission economy, has forged a partnership with software company april to extend its benefits into the realm of tax management, Inman learned in a Jan. 29 statement.
Tongo, which formally rolled out in September 2024, is a web and mobile application that rests on the concept of providing real estate agents clear and flexible control of commission revenue, especially as it relates to dividing funds between their personal and business needs, a longstanding industry issue contributing to why entering the industry from a dependable, salaried role can be so challenging.
“Until now, real estate professionals have been challenged to accurately estimate and make required quarterly tax payments,” said Brandon Wright, CEO at Tongo, in a statement on this partnership. “1099 workers must carefully calculate their income and expenses to prepay the IRS to avoid penalties. Working with april enables us to deliver convenient and tailored financial services to help real estate professionals thrive personally and professionally.”
Among other benefits, Tongo provides advanced access to commissions up to 60 days before closing, allowing agents to better handle expenses and make marketing decisions out from under the pressure of a “start-stop” model, whereby business investments can’t happen until the next deal closes.
Agents can instantly access future commissions up to 60 days early via Tongo. By offering on-demand access to commissions, agents have the flexibility to pay monthly expenses and invest in business growth between commissions.
April is unique in that it offers a fully integrated solution, offering users a single sign-on environment and thus, direct access to the deals, dollars and cents that determine tax strategies. The software is especially useful in facilitating quarterly tax payments, amounts it derives and adjusts as transaction volume ebbs and flows throughout a quarter.
“In addition, april’s embedded tax filing tool covers many common tax scenarios for 1099 workers and small businesses, including Schedule C, contributions for retirement plans, and Qualified Business Income deductions,” the release stated.
Wright said in September that traditional business banking is built around the salaried professional, limiting resources for the 1099 professional.
“The salary-based system of regular payroll is why bills are due monthly, and, in turn, why credit scores reward monthly payments,” Wright said last fall. “Additionally, 401K contributions and tax withholdings are automated through payroll, which makes it easier to save and pay taxes on time.”