Insurance Accounting for Managing General Agencies (MGAs)

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Managing General Agencies operate some of the most complex accounting environments in the insurance industry. Unlike traditional insurance agencies, MGAs manage premium collections, carrier settlements, agency relationships, commissions, bordereaux, trust accounts and program business across multiple carriers and distribution channels. Traditional ERP systems such as QBO, Xero, Sage and Workday provide excellent financial accounting, but they do not manage insurance operations. RemoteBooksOnline helps MGAs implement Premium Accounting as the insurance accounting subledger while continuing to use their existing ERP for financial reporting. This architecture gives MGAs complete operational visibility while preserving enterprise financial controls.

Accounting Challenges Facing MGAs

Growing MGAs frequently experience:

  • tick Multiple carrier settlement processes
  • tick Manual bordereaux preparation
  • tick Spreadsheet commission calculations
  • tick Trust account reconciliation
  • tick Premium reconciliation delays
  • tick Carrier payable complexity
  • tick Multi-program accounting
  • tick Multi-state reporting
  • tick Month-end close delays
  • tick Limited operational visibility

Premium Accounting centralizes these workflows into one insurance accounting platform.

Premium Accounting for MGAs

Premium Accounting helps MGAs manage:

  • tick Policy Submissions
  • tick Premium Accounting
  • tick Program Accounting
  • tick Carrier Accounting
  • tick Agency Accounting
  • tick Commission Accounting
  • tick Invoice Management
  • tick Trust Accounting
  • tick Financial Reporting

Rather than forcing these workflows into an ERP, Premium Accounting becomes the insurance accounting subledger. Learn more about PremiumAccounting.aiand how it helps MGAs manage premium accounting, carrier settlements and insurance financial operations.

MGA Accounting Workflow

Step 1

Policy Submission

Learn more about Policy Submission Accounting .

Step 2

Premium Accounting

Track:

  • Gross Premium
  • Net Premium
  • Taxes
  • Fees
Step 3

Agency & MGA Commission Accounting

Automatically calculate:

  • Agency Commission
  • MGA Commission
  • Total Commission
Step 4

Carrier Accounting

Track:

  • Carrier Payables
  • Carrier Statements
  • Settlement Amounts
  • Program Accounting
Step 5

Invoice Management

Generate invoices directly from policy accounting.

Step 6

Premium Reconciliation

Validate:

  • Premium
  • Commissions
  • Carrier Balances
Step 7

Financial Reporting

Synchronize accounting activity with:

  • QBO
  • Xero
  • Sage
  • Workday

Learn more about Insurance General Ledger Integration

Step 8

Carrier Accounting

Track:

  • Carrier Payables
  • Carrier Statements
  • Settlement Amounts
  • Program Accounting

Carrier Settlement Accounting

One of the biggest accounting responsibilities for MGAs is carrier settlement.

Premium Accounting helps manage:

  • tick Premium Due to Carrier
  • tick Commission Retained
  • tick MGA Revenue
  • tick Taxes
  • tick Fees
  • tick Carrier Balances
  • tick Settlement Reporting

Controllers gain complete visibility into carrier obligations.

Program Accounting

Many MGAs manage multiple insurance programs.

Premium Accounting supports:

  • tick Program-Level Premium
  • tick Program Reporting
  • tick Program Commissions
  • tick Program Profitability
  • tick Program Financial Statements

This allows management to evaluate performance across individual insurance programs.

Bordereaux Support

Premium Accounting captures policy-level accounting information that supports bordereaux reporting.

Organizations gain:

  • tick Standardized Policy Data
  • tick Premium Summaries
  • tick Commission Summaries
  • tick Financial Consistency
  • tick Better Reporting Accuracy

This significantly reduces manual spreadsheet preparation.

MGA Controller Dashboard

Controllers gain visibility into:

  • tick Premium by Program
  • tick Carrier Payables
  • tick Agency Commissions
  • tick MGA Revenue
  • tick Trust Balances
  • tick Outstanding Invoices
  • tick Premium Reconciliation Status
  • tick Month-End Close Progress

Instead of gathering information manually, controllers review operational dashboards generated directly from policy accounting.

Why RemoteBooksOnline

RemoteBooksOnline combines:

  • tick MGA Accounting Expertise
  • tick Premium Accounting Implementation
  • tick Carrier Settlement Support
  • tick Program Accounting
  • tick Controller Support
  • tick Financial Reporting
  • tick Reconciliation
  • tick Ongoing Accounting Operations

Unlike implementation firms, our accounting professionals remain engaged after deployment to support daily accounting operations. Learn more about Insurance Accounting Implementation Services

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