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 health, vehicles, homes, businesses, and other important aspects of their lives.
Why not have the same protection for your agency’s finances? Professional accounting and payroll helps you to avoid financial surprises and covers you when issues or opportunities do arise.
At CSI Accounting & Payroll, we've helped insurance agents with their accounting and payroll since the 1960s. We want to share some timeless accounting and payroll best practices for your industry so you can continue helping others.
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 accounting. It's also important for the insurance industry because it's unclear how often you will get paid. Commission-based pay usually means variable cash flow, and you want to keep a close eye on it so you can pay your bills.
If you don’t have a monthly budget already, establish one and stick to it. This is especially important for your industry when you have variable cash flow and large expenses, such as:
The thing that matters most to insurance agents who are looking for an accountant is claiming all of the tax deductions available to them.
If you do your own taxes, you will likely miss several deductions (even with the help of tax software). The same is true if you work with an annual business accountant who doesn't have extensive knowledge of your industry.
How does an accountant get to know your industry? Exclusive annual specialty or much more frequent monthly experience. Either they are an annual accountant who specializes in your industry for annual taxes, or they are a monthly accountant who has years of working with others in your industry on a monthly basis.
Once an accountant fully understands your industry, especially tax-wise, they can help you claim as many deductions as possible.
Small businesses typically start out conducting payroll in-house. However, as your agency grows, your time is best spent focusing on your clients. Plus, we always say that payroll is easy - until it's not. Outsource payroll to the professionals to avoid mistakes and free up time to work on your business.
Your industry faces payroll complexities that are somewhat unique. Let's tackle some of them in the next points.
In the insurance industry, especially if you're an independent agent, you may get paid exclusively by commissions. If you run a team, setting up a commision structure is a great way to motivate your workers to sell!
A payroll professional can advise you on best practices with this and show you how to handle it in their system. Plus, an accountant can help work this into a flexible budget. If there's any confusion with it, they're only a phone call, text, or email away!
There's a lot of lure into selling. Unfortunately, this can mean disappointment and high turnover for new agents if they feel they were promised more than they're getting.
What's one sure way to improve job satisfaction? Offer great benefits to your workers.
If you outsource your payroll, many payroll providers also offer employee benefits. These can include things like 401(k) plans or even improving their work environment with the help of an HR service.
Although not too common anymore, many insurance agents used to hand-deliver policies to businesses they worked with. If you still believe in old-fashioned face-to-face interactions with those whom you do business with, you'll be facing some travel expenses.
Luckily, a payroll professional can help you with travel reimbursements, and an accountant can help you claim tax deductions for travel expenses!
Outsourcing someone 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 and want to spend your time helping it grow. Delegate your payroll, bookkeeping, accounting, and tax preparation to professionals with experience in your industry.
If you're considering CSI Accounting & Payroll, let's discuss your unique challenges to see if our services are the right fit. Click the button below to schedule your free consultation:
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