Accounting and Consulting Services for Insurance Companies

At Flatworld Solutions, we specialize in outsourcing insurance accounting services designed to optimize financial processes, minimize costs, and ensure accuracy in every transaction. Insurance agencies and firms can use accounting software to better manage their budgets and create revenue and expense projections. The system consolidates data across all entities and creates one central financial report, which can drill down as needed. Additionally, systems https://primetrainingandemployment.com/prepaid-expenses-vs-accrued-expenses-major/ with business intelligence can use this data to project future financial revenues. Tedious back-office tasks can create time-consuming tasks like general ledger balancing, spreadsheet updating, and manual invoice creation.

• Debbie Dietz began her insurance career in 1979 at Blue Cross/Blue Shield, where she spent five years building a strong foundation in the industry.
• If you need an introduction to general accounting for a better understanding of basic concepts, start with our accounting tips for small businesses and learn the difference between bookkeeping and accounting.
• We want to share some timeless accounting and payroll best practices for your industry so you can continue helping others.
• A user-friendly interface and robust reporting features ensure that agencies can manage their expenses and revenues efficiently, leading to better financial health and operational productivity.
• User-friendliness and the complexity of the software should be considered, as these factors influence adoption and efficiency.
• We provide you with accurate fiscal data, understandable and detailed insights using cutting-edge technology and our expertise.

Can insurance agents and brokers benefit from using QuickBooks?

Our goal is to share these elements with agencies and help them prioritize their time and initiatives around these pillars to achieve success that will last for years to come. The reason agencies can have bad debt even on a cash basis, is because the bad debt usually involves the fiduciary money. Because the agency is responsible for someone else’s money, it incurs bad debt even though it is on a cash basis. If the bad debt was its own money, and the agency was on a cash basis, the loss might not be deductible. No matter what you might think, agencies are responsible for fiduciary funds. The responsibility is memorialized in your carrier contracts and all 50 states, plus the federal government, require agencies to treat these fiduciary funds appropriately.

Best Accounting Software for Insurance Agency

Commissions fluctuate, claims take months—sometimes years—to settle, and tax deadlines creep up before you’ve had a chance to organize your accounts. Suddenly, you’re scrambling to figure out where your money is going, why cash flow is unpredictable, and whether you’re even making a real profit. Club Capital’s new Chart of Accounts allows agents to better understand how and where they make their money with a detailed split between new and renewal revenue. This powerful level of detail is not only valuable to review your own agency’s performance, but also provides you a glimpse of how top performing agencies rely on the same revenue sources across the country.

• Centri’s team of experts is ready to help you navigate the challenges of the insurance industry.
• With FreshBooks, they can easily track income and expenses, automate invoicing for recurring premiums, and generate detailed financial reports.
• We leverage the latest accounting and bookkeeping technologies, combined with world-class office spaces, to deliver top-tier services with the highest efficiency.
• Making Advanced Professional Accounting Services your partner can help play a critical role in improving your business’s operational efficiencies, cutting down costs, and making informed decisions quickly.

Create a COA tailored to your industry

Reconciling accounts monthly, if not weekly, keeps your agency’s financial data accurate. Regular reconciliation helps you identify and correct discrepancies, track payment statuses, and avoid cash flow gaps. Your income statements, balance sheets, and cash flow reports will reflect the reality of your agency’s finances, helping you make strategic decisions.

The insurance broker’s dual capacity underscores the nature of insurance premium accounting and financial management objectives. On one hand, an insurance broker, acting as “business owner,” acquires the authority to invoice, receive and maintain insurance premiums in the agency’s trust bank account. On the other hand, the insurance broker, acting as “custodian” of premium funds, assumes the obligation to disburse the premium funds to their legal beneficiaries.

Bennett Thrasher believes in serving our clients by building trust through insight and involvement.

• Owners and managers can easily distinguish between personal expenses and those related to the agency, ensuring accurate financial reporting and compliance with tax regulations.
• But when an agency is sold, goes to secure a loan, a gift/estate event occurs, or other usually unusual situations happen, the balance sheet becomes extremely important.
• The current GL accounting process is at odds with the very nature of the premium transaction process.
• Maintaining a healthy cash flow is essential for the sustained success of any insurance agency.
• Our expert bookkeeprs and accountants work with automated solutions that streamline collections, simplify commission tracking, and ensure your records are always accurate and audit-ready.
• This includes customer relationship management (CRM), payroll, inventory management, and other systems.

With these insurance accounting basics in your pocket, you’re better prepared to take on the financial responsibilities of running your insurance agency and upholding your duty to your policyholders. Carefully tracking your expenses can be especially useful in helping you reduce your tax bill. This is because there are certain deductions that may apply to your insurance business. While deductions can save you money, it’s important to have accurate financial records that you can refer back to when tax season comes to make sure you’re correctly claiming relevant expenses.

Grab tax deductions as they occur:

This flexibility allows insurance agencies to operate more efficiently, with accounting for insurance agencies unlimited free sub-users benefiting from the platform’s collaborative capabilities. We manage all aspects of payroll processing, including employee compensation, payroll and compliance with regulations. IAAB records your direct bill commission on a cash basis using company commission statements as the source document.

We use industry-leading bookkeeping software tailored to the needs of insurance agencies. Our team is skilled in various Outsource Invoicing platforms and can recommend the best fit for your business. Partnering with an accounting firm experienced in insurance can provide expert guidance on navigating complex regulations and managing unearned premiums and loss reserves.