7 Financial Reports Every Insurance Agency Should Review Monthly

Remote Books Online is an authorized reseller and implementation partner for Premium Accounting, helping insurance agencies, MGAs, wholesalers, and carriers implement premium accounting workflows and integrate them with general ledger systems such as QuickBooks Online, Xero, Sage, Workday, and other accounting platforms.

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Successful insurance agencies don’t wait until year-end to understand their financial performance. They review financial reports every month to monitor profitability, manage cash flow, identify accounting issues, and make better business decisions.

For insurance agencies, MGAs, and wholesalers, financial reporting extends beyond a standard Profit and Loss Statement. Premium balances, carrier settlements, commissions, and trust accounts also require regular review.

The following reports should be part of every monthly accounting process.

1. Profit and Loss Statement

The Profit and Loss (P&L) Statement summarizes revenue and expenses for the accounting period.

Review:

• Commission income
• Fee income
• Operating expenses
• Payroll
• Marketing expenses
• Technology costs
• Net profit

Compare each month against prior periods to identify trends.

Questions to ask:

• Is revenue growing?
• Are expenses increasing faster than income?
• Which expense categories need attention?

2. Balance Sheet

The Balance Sheet shows what the agency owns and owes.

Review:

• Cash balances
• Accounts receivable
• Trust account balances
• Fixed assets
• Accounts payable
• Carrier payables
• Loans
• Owner equity

Unexpected changes often indicate accounting issues that should be investigated.

3. Cash Flow Statement

Profitability does not always equal positive cash flow.

The Cash Flow Statement helps agencies understand:

• Cash received
• Cash paid
• Operating cash flow
• Investing activities
• Financing activities

Healthy cash flow is essential for payroll, vendor payments, and business growth.

4. Accounts Receivable Aging Report

Outstanding receivables directly impact cash flow.

Review:

• Current balances
• 30-day receivables
• 60-day receivables
• 90-day receivables
• Past due accounts

Large overdue balances should be addressed before they become collection problems.

5. Carrier Payable Report

Insurance agencies should review carrier balances every month.

The report should include:

• Outstanding carrier balances
• Recent settlements
• Adjustments
• Return premiums
• Pending payments

Carrier balances should agree with reconciliation reports.

6. Commission Report

Commission income is the primary revenue source for many agencies.

Review:

• Gross commissions
• Producer commissions
• Split commissions
• Chargebacks
• Adjustments
• Outstanding commission liabilities

Accurate commission reporting improves financial planning and producer confidence.

7. Premium Reconciliation Report

One report many agencies overlook is premium reconciliation.

This report verifies that:

• Premium billed matches policy activity.
• Payments have been applied correctly.
• Carrier balances are accurate.
• Trust account activity is complete.
• Financial records agree with operational systems.

This report often identifies accounting discrepancies before they affect financial statements.

Additional Reports Worth Reviewing

Growing agencies may also benefit from reviewing:

• Premium Written Report
• Policy Count Report
• New Business Report
• Renewal Report
• Producer Performance Report
• Trust Account Summary
• Month-End Close Report

Management should review operational reports alongside financial reports.

What These Reports Tell You

Together, these reports answer important business questions.

For example:

• Is the agency profitable?
• Are commissions increasing?
• Is cash flow healthy?
• Are carrier balances accurate?
• Are expenses under control?
• Is premium growing?
• Are collections slowing?

Reliable reports help management make better strategic decisions.

Common Reporting Problems

Many agencies struggle with inaccurate financial reports because of:

• Delayed bookkeeping
• Manual spreadsheets
• Missing reconciliations
• Duplicate entries
• Incorrect commission accounting
• Poor chart of accounts
• Unreconciled carrier balances

The quality of financial reporting depends on the quality of the underlying accounting data.

How Insurance Premium Accounting Improves Reporting

Traditional accounting software produces financial statements but often lacks insurance-specific reporting.

Insurance premium accounting software provides additional visibility into:

• Premium activity
• Carrier settlements
• Commission accounting
• Trust balances
• Payment allocation
• Premium reconciliation

Platforms such as Premium Accounting integrate with QuickBooks and Xero to provide operational reporting alongside traditional accounting reports.

How Remote Books Online Helps

Remote Books Online helps insurance organizations produce timely and accurate financial reports.

Our services include:

• Monthly bookkeeping
• Financial statement preparation
• Bank reconciliation
• QuickBooks support
• Xero support
• Month-end reporting
• Accounting process improvement

For agencies seeking more detailed operational reporting, we also help implement Premium Accounting, enabling organizations to gain better visibility into premiums, commissions, carrier balances, reconciliation, and insurance financial performance.

Final Thoughts

Financial reports are more than accounting documents-they are management tools. Insurance agencies that review financial reports every month identify issues earlier, improve profitability, strengthen cash flow, and make better strategic decisions. By combining accurate bookkeeping with insurance premium accounting software, agencies gain a complete view of both financial performance and insurance operations.

Frequently Asked Questions

Which financial report is most important for insurance agencies?
No single report tells the entire story. Most agencies review the Profit and Loss Statement, Balance Sheet, Cash Flow Statement, Carrier Payable Report, Commission Report, and Premium Reconciliation Report together.

How often should financial reports be reviewed?
Financial reports should be reviewed monthly after the accounting period has been reconciled and closed.

Why is premium reconciliation included in financial reporting?
Premium reconciliation confirms that policy activity, payments, carrier balances, and accounting records all agree before financial statements are finalized.

Can premium accounting software improve financial reporting?
Yes. Insurance premium accounting software provides detailed operational reporting for premiums, commissions, billing, carrier settlements, and reconciliation while integrating with QuickBooks and Xero.

Can Remote Books Online prepare monthly financial reports?
Yes. Remote Books Online provides bookkeeping, reconciliations, financial reporting, and supports Premium Accounting implementations for insurance agencies, MGAs, and wholesalers.

Related Resources

• Insurance Accounting Guide
• Month End Close Checklist Insurance Agencies
• Insurance Agency Accounting Best Practices
• Premium Reconciliation Explained
• Carrier Payables Explained
• Chart of Accounts for Insurance Agencies
• Bookkeeping Pricing for Small Businesses
• Get Your Bookkeeping Quote
• Premium Accounting