According to InsuranceJournal.com, independent insurance agencies tend to focus on the sales part of their industry. Many of the business owners lack either knowledge or the experience 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, owner of Burand & Associates, indicates that most of the time the issue lies in balance sheets. He further explains that it is likely that accountants may neglect to update all accounts annually, and that it is common for some accounts not to 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 simply give bad tax advice. Some insurance agency 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 insurance agency.
The key to solving the "bad accounting" 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 agency management software solutions with precise insurance agency accounting and real-time updates. Agency Matrix is a user-friendly agency 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 all of your needs at any pace you like. The primary question is, "Are you willing to take the precautions that are vital for your insurance company to succeed and prevail?" If so, choose Agency Matrix management software and let's get your independent agency on the right track to success.