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Insurance agency bookkeeping for commissions and funds held
Insurance agency accounting has to explain carrier statements as well as bank deposits. Tidwell helps organize commission activity, operating expenses and payroll records while preserving the distinction between agency income and money held for others.
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General information, not legal advice.
Reconcile commissions through policy adjustments
Carrier statements can include renewals, new business, cancellations and chargebacks. Match each settlement to the statement period and retain unresolved differences instead of posting the entire deposit to an unexplained income account.
Keep premium funds distinct from agency earnings
Where an agency handles funds for others, use separate supporting records and the handling structure established with counsel. Identify whose funds each transaction represents. Tidwell provides bookkeeping support alongside your CPA or attorney, not advice about fiduciary obligations.
Support producer and office payroll approvals
Retain approved compensation calculations, statement references and adjustments for producer pay. Office payroll needs its own approved employee records. Reconcile those costs with operating expenses before reviewing the agency’s financial performance.
Carrier settlement and producer-pay questions
Why can commission income change after a policy is written?
Cancellations, renewals and carrier adjustments may change later settlements. Keep the supporting statements so each adjustment can be traced.
Can bookkeeping distinguish premium funds from commissions?
Yes, within the account and handling structure your professional advisers establish. The supporting records should identify the owner and purpose of each amount.
What should accompany producer compensation instructions?
Provide the approved calculation, applicable commission statements and authorized corrections. That helps explain the payroll amount later.
Make commission statements easier to reconcile
Bring your current records and the questions you want the books to answer. We work remotely across California, with meetings at our Atascadero office by arrangement to discuss a practical service scope.
Monthly bookkeeping starts at $500 a month. See pricing