Learn to set up a chart of accounts to manage your insurance business properly

Insurance agencies and brokers can serve as guardian angels when dealing with hardships—but even guardian angels need to know how to make a QuickBooks chart of accounts!

We want to make it easy on you, though; that’s why we created a free PDF with a QuickBooks chart of accounts for insurance agencies and brokers. Fill out the form below to get your free chart of accounts now!

Insurance agencies are the companies that actually provide the insurance service. These 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:

• Advertising
• Business Permits, brokerage licensing fees, and any certification fees
• Travel Expenses for meetings and claim assessments
• Meal Expenses for meeting clients and business partners

In short, there are a lot of nuances to accounting in the insurance industry, and we want to make them easy to understand. If you have any questions, reach out to the FTC team!