Insurance & Mortgage
Commission income from multiple carriers and lenders creates reconciliation headaches. We track what you're owed, what you received, and what the difference means.
The Industry
Independent insurance agents and mortgage brokers share the same financial reality. You do the work today and get paid weeks or months later. The commission arrives net of fees, splits, and adjustments that rarely match your mental math. When you work with five carriers or a dozen lenders, tracking what you earned versus what landed in the bank becomes its own job.
Insurance renewals add another layer. You sold a policy three years ago and should still be receiving renewal commissions. But are you? The carrier sends a statement with hundreds of line items and codes that take an hour to decipher. Most agents never verify whether the payment is correct. They deposit the check and move on, potentially leaving money on the table every single month.
Who This Covers
Who This Covers
Independent insurance agencies writing P&C, life, health, or benefits. Mortgage brokers and loan officers operating independently or through small brokerages. Anyone in the Merrimack Valley or Greater Boston area whose income arrives as commissions from multiple sources.
The Core Challenge
The Core Challenge
Every carrier and lender pays differently. Some pay monthly, some quarterly. Some deduct chargebacks immediately, others adjust months later. Without a system to match expected commissions against actual deposits, you have no way to know if you’re being paid correctly.
What We Handle
We build a commission tracking system that matches your business. For insurance agents, this means separating new business commissions from renewals and tracking expected payments by carrier. When a deposit arrives, we reconcile it against what should have been paid. Discrepancies get flagged so you can follow up before the trail goes cold. For mortgage brokers, we track closings and expected commission timing so you know what cash is coming and when.
The compliance overhead in this industry adds up fast. E&O premiums, state licensing fees, continuing education courses, association dues, and carrier appointment fees. These expenses need proper categorization for tax purposes and should be tracked separately so you can see the true cost of staying licensed. We also handle the quarterly estimated tax calculations, which get complicated when your income varies significantly month to month.
Commission Reconciliation
Commission Reconciliation
We match carrier and lender statements against your expected payments. Renewal commissions get tracked so you know when a policy lapsed or a carrier underpaid. Loan closings are recorded with expected commission amounts and payment timing. You stop wondering whether you received what you earned.
Tax Planning for Variable Income
Tax Planning for Variable Income
Quarterly estimates based on last year’s income don’t work when this year looks completely different. We calculate estimates using your actual commission patterns and adjust throughout the year. No more overpaying in slow quarters or scrambling in busy ones.
Common Problems
Insurance agents frequently have no idea whether carrier payments are accurate. A statement shows 47 policies renewed this month, but you wrote over 60 policies two years ago. Did some lapse? Were some non-renewed by the carrier? Or is someone not getting paid? Without tracking, you have no way to know. Over time, these small discrepancies add up to real money.
Mortgage brokers face a different timing problem. You close a loan in November, but the commission doesn’t arrive until January. Your Q4 estimated tax was based on closings that already happened, but income that hasn’t arrived. Then in Q1, you’re paying taxes on income that technically belonged to the prior year. The mismatch creates either penalties or overpayments, and neither feels right.
Renewal Commission Leakage
Renewal Commission Leakage
Without a system tracking expected renewals against actual payments, underpayments go unnoticed. Carriers make mistakes. Policies get coded incorrectly. Agents who don’t verify statements leave money with the carrier that should be in their account.
Deductions Left Behind
Deductions Left Behind
Client entertainment, marketing materials, home office expenses, professional development. These are legitimate deductions that often go untracked because receipts pile up and nobody categorizes them properly. By tax time, the opportunity to claim them accurately has passed.
What Changes
You know exactly what you earned and what you’re owed. Commission statements become something you can actually verify instead of documents you file away and hope are correct. When a carrier underpays, you catch it within weeks instead of never. The confidence that comes from knowing your numbers are right changes how you think about your business.
Tax season stops being a source of anxiety. Quarterly estimates are based on real income patterns, so April brings no surprises. Your CPA receives organized records with compliance expenses properly categorized and commissions clearly documented. The conversation shifts from fixing errors to actual tax strategy. And if you ever want to sell your book of business or bring on a partner, you have clean financials that show exactly what the agency is worth.
Income Clarity
Income Clarity
Monthly reports showing commissions by carrier or lender, expected versus actual payments, and any outstanding amounts. You see which relationships are most profitable and which ones create the most administrative headaches. Business decisions are based on facts.
Time Back in Your Day
Time Back in Your Day
The hours you currently spend sorting through statements, matching deposits, and organizing receipts go back to selling and serving clients. Your bookkeeping runs in the background while you focus on the work that actually generates revenue.
The Merrimack Valley's Trusted Accounting Partner
The Next Step:
A 15-Minute Call
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.