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 firstname.lastname@example.org.