According to InsuranceJournal.com, independent insurance agencies tend to focus on the sales part of their industry. Many of the business owners either lack knowledge or the experience that is required to run insurance agency accounting. There is nothing worse than being in the dark about having a bad accountant who doesn’t handle your financial information correctly.
Chris Burand, the owner of Burand & Associates, indicates most of the time the issue lies in the balance sheets. He states it is likely that accountants may neglect updating several accounts annually or some accounts may not be updated correctly. For instance, inputting a long term loan in the short term loan section would be an error. This occurs more often than you think. Burand also points out another problem. Many accountants give bad tax advice. Some accountants mistakenly consider cash that exists in the fiduciary capacity to be an asset of company. There are too many other dilemmas to mention here that could ultimately result in the downfall of your agency.
The key to solving this problem is to study the basics of insurance agency accounting and provide others in your company with the knowledge of how your agency management system works. It is crucial to have a proper management system with precise accounting and real-time updates. Agency Matrix is a user-friendly management system unlike any other. Your employees will be able to navigate easily through your agency’s accounts with no stress. The trainers at Agency Matrix offer assistance on any of your needs at any pace you like. The prime question is, are you willing to take the precautions that are vital for your company to succeed and prevail? If so, choose Agency Matrix.