As an Aggregator we are more than just access to markets… we are technology… we are accounting… and we are tools to help you be successful. The accounting services you will learn about here all come at no extra charge to the agency. They are some of the many benefits of being a member of Agents Alliance Services, Ltd.
Agency Bill Accounting
Independent Insurance Agencies that utilize carriers that only offer Agency Bill Accounting have a different set of responsibilities.
Agency Bill processing is the process of entering Agency Bill invoices, entering client payments, and then reconciling the policies against the company accounts agency bill statement. The receivable, payable, income and expense values all come from creating the invoice.
Creating the invoice means you will do 3 later transactions:
- Receipt money from the client.
- Issue a check to the company less your commission.
- Issue a check to the producer if commission is included.
This process is tedious and time consuming. In many cases the Agency Principal assumes the responsibility of reconciling all agency bill accounts. As your agency grows so does the Agency Bill Accounting responsibility, in some cases you will be handling hundreds of thousands of dollars, so it is very important that these accounting processes are timely and accurate.
At Agents Alliance services we take all of the headache out of Agency Bill Accounting. As a member you will collect premium from the client, post it in the management system and we will ensure that carrier invoices get paid and premiums are posted to the correct accounts.
Direct Bill & Premium Finance
Direct bill refers to an invoice where the client pays the insurance company direct. The agency commission is sent to the agency by the insurance company.
Direct Bill invoices and payments are typically created by commission download. At Agents Alliance we reconcile direct bill statements against commission statements each month to ensure proper account credit.
Direct Bill Payments to Agency
If you receive a payment from the client on a direct bill transaction, that is called a transmittal. A transmittal consists of two transactions; cash in, and a check out.
At Agents Alliance Services, you post the premium in our system and we reconcile the statement from the insurance carrier each month to ensure that premiums actually posted to the correct client.
Premium financing is the lending of funds to a person or company to cover the cost of an insurance premium. Premium finance loans are often provided by third party finance entity known as a premium financing company; however insurance companies and brokerages occasionally provide premium financing services through premium finance platforms.
With Agents Alliance, you work with the client and the Premium Finance Agreement in place and we make sure that the premium is posted to the correct account.
Producer Income Accounting
As your agency grows and you add producers and you add carriers, you will need to know how much to pay each producer. Sounds simple enough… however when you have producers placing business with numerous carriers, and you have new business and renewal commissions to deal with and you have numerous producers… the process of determining how much each producer has earned can be very time consuming. At Agents Alliance Services Ltd. we handle all of that accounting for you.