If you’re tracking your agency’s premiums and commissions by Excel STOP right now! Back away slowly from your computer…you don’t need to do this! Using Excel to track your commissions is like using a pair of scissors to cut your lawn: it gets the job done, but it is painstakingly slow and prone to human error. There is a better way!
You want a system that is easy – where you just input premiums and pay out months and you get your commissions in one keystroke. You want something that shows your total commission minus lead costs and other factors. What you want is accounting linked to your agency management system.
A good agency management system offers not just integrated accounting, but integrated accounting that gives you the information you need. This includes being able to see all your commissions owed at one time, and broken down in a variety of different ways.
When looking at accounting systems, be sure to find one that breaks down commissions and premiums by:
Line of business: This allows you to see which lines are performing well, and where you have gaps. By analyzing commission by line of business, you can get a good picture of your strongest and weakest service lines, which will help you determine if you need to put more resources towards one service line over others.
Producer: It’s very important to break down commission by producer so you can see who is doing well and who needs to step up. This type of data is also very valuable to your producers so they can calculate their income.
Carrier: Breaking down commissions by carrier helps you see which carriers owe commission to you and/or your producers. This can help you determine whether or not you need to drop carriers that aren’t bringing in enough business.
In addition to these breakdowns, you should also look for an accounting system that has pre-created reports and customizable ones. The pre-created reports will likely cover the above breakdown options, along with options such as year-to-year comparison reports, and reports that cover areas like marketing campaigns or personal lines to commercial lines. Customized reports give you the freedom to create specific data outputs for the needs of a certain carrier, producer, or employee as needed.
Because it is impossible for any system to know exactly what your agency needs, it is important to work with a provider that will help you create the customized reports you need to run your agency.
At SIS, we know each of our clients is unique, so we work with them on an individual basis to meet their needs. Our Partner XE system offers integrated accounting with pre-created and customizable report options, along with a personal representative to help your agency create the reports you need.
We’d love to hear from you on how we can help your agency. Contact us today at 800-747-9273 or [email protected].
After two years growing SIS’ sales as EVP of Marketing and Sales, Michael Doran has been promoted to President.
The leadership team at Strategic Insurance Software (SIS) is pleased to announce the promotion of Michael Doran to President. In his new role, Doran will be responsible for all client-facing activities, including sales, account management, and client services.
“As SIS continues to grow and evolve, we are constantly evaluating our organization and roles to best service our customers,” said SIS CEO Alex Deak. “Michael’s commitment to serving SIS’ partner agencies and helping them improve their operations is demonstrated by the increase in sales over the past two years.”
Prior to his promotion, Doran spent two years as the EVP of Sales and Marketing for SIS. During that time, SIS increased sales by over 30% and customer count by over 13%. Doran’s oversight of SIS’ relationships with its partner agencies will help make customers’ transition from sales to implementation and service as smooth as possible.
Doran is excited about having the opportunity to make a bigger impact for SIS’ partner agencies: “We have a lot of great customers. The team is very excited as we continue to bring on new clients and find ways to better serve them as they transition to Partner XE and continue to help all of our agency clients get the most from their investment with us.”
Some of the upcoming initiatives that Doran will focus on in his new role include
Expanding the number of regional user conferences.
Forming more partnerships to support the best of breed approach that integrates Partner XE with other third party software used by independent insurance agencies.
About SIS: Headquartered in Columbus, Ohio, SIS is the team behind Partner XE insurance software – an innovative web-based insurance agency management system that helps independent agencies streamline workflow and grow their business. Built on a foundation of strong technology and exceptional service, we’re moving forward with a constant eye on innovation that will make independent agents’ lives easier. For more information visit www.sispartnerplatform.com.
SIS’ customers will benefit from easier agency management integrations with self-service portals and best of breed technology tools.
On April 25, Strategic Insurance Software (SIS), the maker of Partner XE, a leading agency management system for independent agents, announced its partnership with NxTech, Inc., a provider of P&C interface and data integration solutions.
NxTech is an insurance industry leader that understands the business and technology of insurance. Leveraging NxTech’s ConneXt™ technology and ACCORD XML, NxTech and SIS are working to build a web services interface that can easily be implemented by carriers and software providers alike. As a result, Partner XE users will be able to:
Provide customer and prospect self-service portals using information stored in Partner XE.
Better integrate with the best of breed technology tools.
Reduce costs by eliminating unneeded middleware and increasing direct real time data exchange and communication capabilities with carriers.
Paul Fuller, EVP of Product Management for SIS, is excited about the new capabilities the partnership with NxTech offers Partner XE users: “Our partnership with NxTech fits into our goal to be always looking for ways to improve the productivity and efficiency of our agency partners. The improvements to Partner XE made possible by NxTech’s technology will help agencies improve the way they communicate with customers, staff, and insurance companies.”
Thad Bauer, President of NxTech, commends SIS on its forward thinking technology roadmap: “NxTech is pleased to be working with SIS to create the ACORD XML that will be passed in and out of Partner XE. ACORD XML and the approach of directly tying it to the Partner XE database, will play a key role in allowing SIS to provide new functionality to agents, as well as simplifying integrations. ”
This integration was announced by SIS at the Partner XE user conference in Columbus, Ohio.
Alex Deak, CEO of SIS, is excited about what the new partnership with NxTech brings to Partner XE users: “NxTech’s industry and technology expertise combined with the flexibility and capability of ConneXt and the NxTech team is a perfect complement to our passion to serve independent agencies with innovative and easy to use technology solutions.”
About NxTech Incorporated NxTech is a market leader in P&C interface and data integration, celebrating 10 years of successful implementations. We help carriers and MGAs eliminate keystrokes and enable growth through the automated exchange of data with their distribution channels, third parties and within their enterprise. Combining unparalleled ACORD® Standards expertise, deep insurance knowledge and innovative technology, the NxTech Total Interface Solution™ provides best in class Real Time, Agent Download, and Portal Solutions. NxTech is headquartered in Milford, Ohio (a Cincinnati suburb). www.NxTechCorp.com
About SIS Headquartered in Columbus, Ohio, Strategic Insurance Software (SIS) is the team behind Partner XE–an innovative web-based insurance agency management system that helps independent agencies streamline workflow and grow their business. Built on a foundation of strong technology and exceptional service, we’re moving forward with a constant eye on innovation that will make independent agents’ lives easier.
In a recent post, we took a look at the differences between cash and accrual accounting methods, both of which have their own benefits. No matter which methods your agency is using, you should be using it within an integrated accounting system. Integrated accounting can be defined as accounting linked with your agency management system creating a streamlined system that ties all aspects of your prospect-to-client process together in one place.
Your provider should offer integrated accounting as an add-on to your basic agency management system, and we suggest you consider adding it to your processes. Not only are the benefits of integrated accounting endless, the system ends up paying for itself with the time and money you’ll save.
Integrated Accounting Benefits
Processes data daily: Once you’ve set all your invoices, payments, etc. they’ll process automatically on the dates you’ve set.
Provides direct bill commission download: This capability dramatically reduces duplicate data entry by ensuring data accuracy, saving your agency hundreds of work hours.
Creates expense reports: With integrated accounting, you can easily select the data you need and create a plain or visually interesting expense report in minutes.
Offers easy branch accounting: For agencies that handle multiple insurance types, integrated accounting makes it easy to view financial information for each branch separately.
Shows complete client records: You can see all financial activity from each client in one place, making it easy to see total financial history including prices of assets, policy costs and payment information.
Increases access to financial info: Since your accounting is linked with your agency management system, you can access it just as easily as any other part of your management system
Before you jump right to adding integrated accounting, talk with you provider about getting demos and training. SIS offers these trainings for Partner XE’s integrated accounting, and tailors your accounting system to your agency’s individual needs. To find out more about Partner XE and its other capabilities, contact us today at 800.747.9273 or mailto:[email protected].
In our last post we looked at the differences between cash and accrual accounting and, although each has its own benefits and drawbacks, most insurance agencies tend to use an accrual accounting system. If you’re using a cash system you may find that, as your agency grows, you are outgrowing the cash accounting method. As you start to think about switching to accrual, you should take a step back and ask yourself a few questions.
1. Do I need to switch?
The IRS requires certain types of businesses to use accrual accounting, but It’s likely your agency isn’t required by law to switch. However, you should consider switching if:
You are tracking your profitability over the long-term
You have more than a handful of employees – salaries tend to operate better with an accrual system as there may be times you don’t physically have the cash to pay your staff
You talked with other agencies in your management system’s user group and find many use the accrual system
If you identify with two or more of these criteria, switching to the accrual accounting system is the right move for your agency. Once you know you need to switch, start creating a plan by asking yourself the below questions.
2. When will I switch?
Start off by identifying when you can switch systems. The best time will be different for each individual agency. Think about your year: is there a time when things are a little slower? This is the right time to make the switch to a new system. If there isn’t an easily identifiable slow time, your best option is to change systems at the beginning of your fiscal year.
3. Who needs to know?
Your employees should definitely be in on your accounting system change. The best way to get the word out is to assign a small team to head up the switch. Have them create a timeline, document the new process, and organize training. Eventually everyone in your agency should be well versed on your new system and know their place in the process.
Another very important group that needs to know you’re changing accounting systems is the IRS. The IRS requires any company or organization switching accounting methods to fill out Form 3115 – Application for Change in Accounting Method. You MUST file this form within 180 days (about 6 months) of the end of the year in order to make your switch.
4. How will things change?
Take a look at the accounting system you’re using. Most agencies use Quickbooks or an integrated accounting system, but no matter what you’re using, things are going to change. Talk with your provider to find out what you need to do to prepare and start making adjustments sooner rather than later. As with anything new, you will have a learning curve. Take your time and make sure you know what you’re doing, and be patient with mistakes. Remember, you didn’t learn your current system overnight, either!
Whether you chose to move to accrual or stick with cash accounting, we suggest using an accounting system that is linked with your agency management system. Using an integrated system makes tracking and reporting easier because all of your agency data is in one place. SIS’ s Partner XE offers integrated accounting along with other great capabilities. To find out more about Partner XE can offer your agency, contact us at 800.747.9273 or [email protected].
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Digital insurance matters. According to McKinsey & Company, agencies that “digitally transform stand to gain satisfied customers, lower operating costs, and achieve higher growth.” Going digital doesn’t mean moving all your operations to A.I. and forgoing a physical location; it simply means moving towards meeting customer needs, improving processes, and protecting your business.
Last year, we began planning our 2020 Partner Platform National Learning Event. While we expected it to be different from our 2019 event, we never anticipated the COVID-19 global pandemic challenges. Yet, our innovative and adept team and SIS partners readily came together to form our first Virtual National Learning Event.
SIS’ customers will benefit from easier agency management integrations with self-service portals and best of breed technology tools.
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If you’re tracking your agency’s premiums and commissions by Excel STOP right now! Back away slowly from your computer…you don’t need to do this! Using Excel to track your commissions is like using a pair of scissors to cut your lawn: it gets the job done, but it is painstakingly slow and prone to human error. There is a better way!