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7 Accounting Best Practices for Insurance Agents

Dec 20, 2016 8:04:00 AM / by Brian Paulson posted in insurance brokers

As an insurance agent, you understand the importance of protecting one’s assets. That’s why your clients rely on your expertise when it comes to covering their vehicles, homes, businesses, and other important aspects of their lives.

Why not have the same protection for your agency’s finances? Professional bookkeeping and accounting helps you to avoid financial surprises and covers you when issues or opportunities do arise.insurance-accounting.jpg

7 Accounting Best Practices For Insurance Agents:

  1. Develop a system:
    Start your agency on the right foot by developing a system to track cash flow -- all of the money coming in and going out. Tracking income and expenses in an efficient and accurate manner is the cornerstone of bookkeeping and accounting.

  2. Stick to a budget:
    If you don’t have a monthly budget for your insurance agency already, establish one and stick to it. A typical budget includes monthly expenses for different aspects of your business such as payroll, marketing, utilities, rent, and other categories.

  3. Record deductions as they occur:
    Stay proactive throughout the year by recording and keeping receipts for any expenditures that are tax deductible.

  4. Be mindful of important tax deadlines:
    In addition to annual tax deadlines, you should be mindful of deadlines for estimated quarterly taxes.


    (Pssst! Check out our Small Business Accounting Kit for a calendar of deadlines.)

  5. Invest in your business:
    Business purchases should be scrutinized. However, don’t avoid investing in your business! Investing properly
    should bring forth profitable opportunities and add to long-term growth.
    SMALL BUSINESS PROFITABILITY CHECKLIST
  6. Outsource your payroll:
    Small businesses typically start out conducting payroll in-house. However, as your agency grows, your time is best spent focusing on your clients. Outsource payroll to the professionals to avoid mistakes and free up time to work on your business.

  7. Partner with an accountant:
    Hiring an accountant to handle your financial needs isn’t a sign of weakness. It’s a sign that you’re serious about the financial health of your agency. Delegate your bookkeeping, accounting, and tax preparation to professionals with experience in your industry.

Ready to learn more?

We’re here for you. If you’re considering a monthly accounting firm as a solution for your insurance agency, contact us for a complimentary meeting. We’ll discuss your unique challenges to see if our services are the right fit. 

In the meantime, download our FREE Small Business Accounting Kit to hit the ground running in the new year!

Download the Small Business Accounting Kit

Brian Paulson

Written by Brian Paulson

Brian began working at CSI in 1996, and he purchased the business in 2002. As Owner, his primary role is in the management and growth of the firm. Since 2002, the firm has more than quadrupled in size. In 2009, Brian started CSI’s payroll service to complement CSI’s accounting and tax services. Brian received his Bachelor’s degree from the University of North Dakota, with a double major in Accounting and Financial Management. He’s a member of both the National Society for Tax Professionals and the National Society for Accountants, and he serves on the board of directors for the Professional Association of Small Business Accountants, where he was once president. Brian also serves on the business advisory council for Opportunity Partners, an organization that helps people with disabilities find employment. He’s also contributed to several business books, including Six Steps to Small Business Success and The Lean Mean Business Machine. Fun Fact: To help put himself through college, he used student loans, delivered pizzas, and worked summers in a salmon processing plant in Alaska.

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