Insurance agencies and brokers can be guardian angels when dealing with hardships. But even guardian angels need to know how to make a QuickBooks chart of accounts!
Insurance agencies are the companies that actually provide the insurance service. Insurances services can cover a multitude of areas, home, health, life, and car insurances are the most common ones. A broker, on the other hand, acts as a liaison between a client and an insurance company. Brokers try to get their clients the best insurance possible for their money. They also handle any disputes that arise between the client and the company.
Insurance agencies should only have one income account for the service they provide. Similarly, insurance brokers make their money by earning a commission on what they sell, so they should have an income account for commission. If the agency or broker sells more than one type of insurance, then you can track how much money the company receives from each service by creating items for each type.
Agencies and brokers need to consider what it is that they spend the most money on. Then they can decide on what kind of expense accounts they need. Some expense accounts that are common to the insurance field are:
• Business Permits, brokerage licensing fees, and any certification fees
• Travel Expenses for meetings and claim assessments
• Meal Expenses for meeting clients and business partners
Where Can I Find More QuickBooks Help?
To learn about a chart of accounts for another industry, try our post on industry specific charts of accounts.
Download a free PDF on how to customize your QuickBooks file and accounts, please enter your name and e-mail below.
|Download: Customize Your QuickBooks File|