Bookkeeping for independent insurance agencies
An agency is paid by many carriers, each with its own statement, timing and chargeback rules. Mispar reconciles commission statements to deposits, keeps producer splits and chargebacks visible, separates any client premium funds from agency revenue, and prepares monthly books in your own QuickBooks Online or Xero file. Plans start at $229/mo.
Best for: Independent agencies and brokerages writing personal, commercial or benefits lines, with or without producers on commission.
Matched to deposits
Commission statements
Tracked
Chargebacks
Documented
Producer splits
Kept separate
Premium funds
Where insurance agency books usually go wrong
- Commissions recorded when received instead of earned.
- Premiums collected for carriers mixed with agency income.
- Producer pay not tied to commission.
How Mispar keeps your agency books clean
Industry-specific accounts and categorization, with the reporting scope agreed before work starts.
Carrier commission statements
Match each carrier statement to the deposit it produced, so commissions are not booked from deposits alone. Differences between the statement and the bank stay on an exceptions list.
Chargebacks and cancellations
Track commission reversals when policies cancel or lapse, so they reduce revenue in the right period instead of surfacing as an unexplained deposit shortfall.
Producer and CSR compensation
Reconcile producer splits, commission payouts and staff payroll to your payment records, with the arrangement for each person documented.
Premium trust or fiduciary accounts
If your agency holds client premium funds, they are tracked separately from operating cash. Rules for these accounts vary by state, so we work from your agreed procedures and your compliance advisor.
Contingent and bonus income
Record volume or profit-sharing payments from carriers as their own income line when they arrive, so they are not mixed with regular commissions.
Errors and omissions and licensing costs
Keep E&O premiums, licensing, continuing education and software costs categorized for monthly review.
Reports an insurance agency can use
- Commission by carrier and producer.
- Premiums collected and remitted.
- Receivables from carriers.
A simple, predictable process
From kickoff to your first clean close, here is exactly what happens.
Map carriers and payment methods
List each carrier, how it pays, and which bank account receives the money.
Agree the commission and split setup
Revenue accounts and producer arrangements are set up to match how you actually get paid.
Reconcile each month
Statements, deposits, payroll and bills are reconciled to the bank.
Deliver monthly statements
Monthly statements arrive ready for your CPA with an exceptions list for carrier differences.
Illustrative example
A carrier statement shows a commission reversal for a cancelled policy, and the deposit that month is lower than the agency expected. Matching the statement to the deposit identifies the reversal, so the shortfall is explained instead of looking like missing money. This is an illustration of the method, not a customer case or a guarantee.
Insurance Agencies bookkeeping — your questions
Do you reconcile to our agency management system?
We work from its commission and payment reports and reconcile them to the bank and the books. Your agency management system stays the record for policies and clients.
How are chargebacks recorded?
As reductions of commission income in the period they are reported, with detail kept so you can see which policies caused them. The exact treatment is agreed with your CPA.
Can you handle client premium funds?
Only to the extent of keeping them reconciled and separate from operating cash. Fiduciary handling rules are a compliance matter for you and your advisor.
What if carriers pay late or in bulk?
Each deposit is matched to the statement lines it covers, so a bulk payment does not distort a single month and late items remain visible on an open-items list.
Do you keep premium funds separate?
Yes. Premiums owed to carriers are tracked as a liability, not agency income.
Can we track results by producer?
Yes, if your commission reports identify the producer. Producer-level reporting is agreed as part of scope.
Explore other industries
Restaurants
Prime cost, tip pools, POS reconciliation, and food/beverage COGS — booked the way a restaurant actually runs.
Learn more →E-commerce
Multi-channel reconciliation, FIFO/weighted-average inventory, COGS at ship date, and sales-tax nexus done right.
Learn more →Retail
POS reconciliation, COGS, shrinkage, vendor payables, and sales-tax remittance — clean end to end.
Learn more →Customers slow to pay?
Our in-house collections team calls and emails customers who owe your company money, so you can stay focused on the work.