Industries
Insurance agencies
Finbryn provides bookkeeping for independent insurance agencies, reconciling carrier commission statements to Applied Epic, AMS360 or HawkSoft and preparing the monthly premium trust account reconciliation for the agency principal's approval. Producer split reports and contingent commission accruals are included in QuickBooks Online.
Management report
Illustrative client ยท September 2026
USD
| Line | Sep | Aug | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Exceptions report
Where the books usually hurt
Carrier commission statements arrive in different formats and are never tied to the agency management system
The premium trust account, the ledger and the carrier balances all show different numbers
Agency-bill and direct-bill business are mixed together in the books
Contingent commissions are booked in cash months after the year they relate to
Revenue is commission, not premium
An agency collects premium on behalf of carriers and keeps only the commission and fees. The ledger needs to show that difference. Premium held for carriers and clients is held in a fiduciary capacity, usually in a premium trust account where state law requires one, with a matching liability, not in revenue. When the two blur, an agency can look profitable one month and short the next.
Commission statements against the system
Each carrier sends its own statement, and none match the agency management system exactly. Finbryn compares every statement with the commission report in Applied Epic, AMS360, HawkSoft or Sagitta, lists missing policies, rate differences and chargebacks, and records the net cash received. The agency decides what to chase with the carrier. Producer commission and split reports are produced from the same data, with chargebacks netted against the right producer in the right month.
The premium trust reconciliation
Each month we prepare a three-way schedule: bank balance, ledger balance and the balances owed to carriers and clients per the agency system. We list reconciling items and aging. State insurance departments set the rules for these accounts, so the requirements vary and are checked with the agency's compliance contact. We never move, disburse or sign on trust funds. All payments and transfers are made by the agency, and the principal reviews and approves each reconciliation before it is final.
Agency bill, direct bill and contingent commissions
Agency-billed business runs through the trust account; direct-billed business pays the agency only its commission. We code each separately so cash flow reports are clean. Contingent or profit-sharing commissions depend on carrier results, so under the variable consideration guidance in ASC 606 they are estimated and accrued only to the extent it is probable that a significant reversal will not occur. We keep an accrual schedule by carrier and true it up when the carrier statement arrives.
When the agency owns an MGA or a captive
When an agency grows into an MGA or a captive, the books also carry bordereaux and fiduciary balances. We prepare the reconciliations and schedules for your review and sign-off, and reserve work goes to a credentialed actuary. An independent CPA practice performs any audit a lender or carrier asks for, and Finbryn receives no fee or commission tied to any audit.
Working with Finbryn
You keep your QuickBooks Online file. A named pod handles the account on an agreed monthly close calendar, with the trust reconciliation delivered as part of each close. Agencies behind on reconciliation begin with a catch-up project, then monthly bookkeeping. Producers paid as contractors are tracked through 1099 vendor tracking. The wider service is insurance accounting support. Pricing is on the pricing page.
Captives and programs that carry their own claims risk can read about loss reserve studies.
Agencies that refer clients to actuaries can read how to choose an actuarial support provider.
Questions
Frequently asked questions: Insurance agencies
Do you move or sign on premium trust funds?
Never. All payments and transfers are made by the agency. We prepare the monthly reconciliation and the agency principal reviews and approves it. Checked 2026-10-09.
How are contingent commissions booked?
They are estimated and accrued under ASC 606 variable consideration, only to the extent a significant reversal is not probable, and trued up when the carrier statement arrives.
Can you produce producer commission splits?
Yes. Split and chargeback reports are built from the agency management system data, netted by producer and month.
Do trust account rules vary by state?
Yes. State insurance departments set them, so we reconcile to the agency's own procedure and flag any state-specific point for the agency's compliance contact.
Do you need client policy records?
No. We work from commission and trust reports, not customer files.
Does Finbryn audit or review an insurance agency's financial statements?
No. Finbryn is not a CPA firm and does not issue audit, review or compilation reports. We prepare financial statements. We have not audited or reviewed them and give no assurance. If Finbryn keeps your books, we refer your audit to an independent CPA practice, and Finbryn receives no fee or commission tied to any audit (scope checked 2026-10-19).
Can you do the books for an agency that also runs an MGA or program?
Yes, as preparation for the agency's review: bordereaux tied to premium collected and remitted, fiduciary account reconciliations and quarterly carrier reports. Finbryn never holds, controls or signs on trust funds. We do not sell or advise on insurance coverage (scope checked 2026-10-19).
Can you reconcile carrier commission statements to Applied Epic or HawkSoft?
Yes. Each statement is compared with the commission report in the agency management system, with differences listed for the agency to resolve.
Do you reconcile the premium trust account?
Yes, as a monthly three-way schedule of bank, ledger and carrier balances. The agency principal reviews and approves it.
What are the common bookkeeping challenges for an insurance agency?
Statement formats that differ by carrier, trust balances that do not tie and late contingent commissions come up most. We build the close checklist around them.
What software do you support for insurance agencies?
We work inside QuickBooks Online alongside Applied Epic, AMS360, HawkSoft and Sagitta, using their commission and trust reports. If you have no file yet, we set one up in the agency's name.
Related services
- BookkeepingBank and credit card reconciliationEvery bank, card and payment-processor account reconciled line by line against its statement, so the balance in your books always matches the balance at the institution.
- Close & reportingAccrualsExpenses and revenue recorded in the period they actually happen, even when the invoice or cash has not moved yet, so the month's numbers reflect that month's activity.
- AP & AR1099 vendor trackingVendor payments are tracked through the year against information-reporting thresholds, so the data a credentialed preparer needs to issue 1099 forms is ready before the filing deadline, not assembled in a rush afterward.
- Close & reportingMonth-end closeA repeatable monthly close that ties every account back to source records and hands you a finished set of financials on a predictable date each month.
- ActuarialInsurance rate making and pricing supportLoss cost analysis, pricing models, rate indications and the exhibits behind a state rate filing for MGAs, insurtechs, small insurers and captives, with the actuarial memorandum signed by the insurer's own actuary or another qualified actuary it engages.
- Insurance accountingInsurance agency accounting and premium trust reconciliationPremium trust reconciled three ways (bank, ledger, agency system), carrier statements tied to commission revenue, producer splits and chargebacks posted, for the agency's review and sign-off.
- Insurance accountingMGA and program administrator accountingBordereaux tied to premium collected and remitted, fiduciary account reconciliations and quarterly carrier reports prepared for the MGA's review.
Explore these areas
- Books, reconciled every weekBookkeepingMonthly bookkeeping in QuickBooks Online, Xero or the platform you already run: every transaction sorted into categories, every bank and card account reconciled, and a clean set of reports each month.
- Books closed, numbers you can readMonth-end close and reportingA repeatable monthly close that ties every account back to source records, then turns the result into management reports, KPI dashboards and board-ready packages. Built for businesses that need numbers fast enough to act on, not just file away.
- Bills paid on time, invoices collected on timeAccounts payable and receivableVendor bills processed and paid, customer invoices sent and chased, and both ledgers reconciled every week so cash in and cash out are never a guess.
Related guides
- BookkeepingThe Month-End Close Checklist: Day by Day, Close by Business Day 5A day-by-day month-end close checklist covering reconciliations, accruals, deferred revenue and review, so you can aim to close by business day 5 each month.
- ComplianceCan an Audit Firm Prepare Financial Statements It Audits?Can an audit firm prepare financial statements and audit them? Auditor independence limits on bookkeeping under AICPA, SEC, DOL, GAO and NAIC rules.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.