Insurance Accounting: Key Considerations
By 2020, it’s been estimated that insurance companies will increase their IT spend with a compound rate of 3% yearly. Further developments in cloud computing, and even global events like COVID-19, have only increased the need and desire for cloud-based solutions. For insurance, this offers unique opportunities to have stronger, faster accounting. Let’s look at how insurance accounting technology can benefit you!
Data Steers Profitability
Behind every policy are financial variables. Assembling and analyzing the appropriate data is essential to making the right business decisions and providing the best coverage to your clients. Insurance accounting focuses not only on managing debits and credits but also on assessing the return-on-investment of policies. The data used to offer policies, handle claims, and budget effectively is valuable. Financial data helps you conserve resources and make the best decisions for your business.
Connection and Efficiency
Modern accounting software helps you manage your accounting information in a way that is easily organized and allocated according to specific organization requirements. Things like automation and the ability for your accounting system to connect with other lending tools is also important. Many insurance companies report that integrating or connecting accounting solutions with other tools saves significant time and money while providing more accurate accounting. The data is not only consistent and accessible, but it’s also ready for you to deliver faster service! Billing can also be automated to save time by ensuring individual customers are billed for their unique amounts at the precise times they’re due.
Insurance accounting must be compliant with local and federal regulations. This can be difficult with more rigid accounting applications. However, flexible accounting platforms will let you conform the system to your exact needs. This means that you can create the controls needed for compliance, specialize your reporting to provide required documentation, and secure your data. And more.
Accounting Seed eliminates much of the legwork of insurance accounting by providing a platform that emphasizes automation and flexibility. Let’s look at other features your insurance company needs in an accounting solution.
Critical System Features
There are many components of insurance work that involve accounting. Look for cloud-based features that empower your entire workflow and process. Here are few other product features particularly useful for insurance accounting.
- Streamlined Revenue Recognition
Track income in real-time. Drill down to specific account details to identify issues or analyze profitability with tools like audit trail and account inquiry features. In Accounting Seed, revenue can be recognized for the lifetime of the policy and can even include start and end Dates.
- Recurring Billing
Automatically create and send bills for individual customers in bulk. Automate billing for customers on a monthly, quarterly, annual, or semiannual basis.
Passwords and closing accounting periods are good basic security measures, but you’ll want more sophisticated internal security features and encryption to protect yours and your clients’ information.
- Financial Reporting
Customize your data to create reports that successfully monitor a diverse portfolio of accounts. Allocate and analyze any data you need to make the most economical decisions.
Create notifications to alert your team to things like past due bills, or generate tasks for staff to complete at specific times.
- Project Accounting
Track essential time/costs with a comprehensive work breakdown structure to determine the best strategies for meeting all target goals.
- Customization and Configuration Options
Easily configure or customize aspects of your financial management to accommodate individual client needs and organizational and regulatory requirements.
Insurance Accounting Software with Accounting Seed
Accounting Seed is used and trusted by multiple insurance agencies due to our flexibility and seamless connectivity to other essential insurance tools. Through internal control and security settings, our software meets all your company’s compliance, performance, and security needs. Our flexible platform empowers you to build and develop the processes and requirements you need to succeed. Our system adapts to you, not the other way around.
Whatever you can put to logic, Accounting Seed can automate. Our solution gives you faster, more precise accounting and more time to take care of your customers. Schedule a free demo today to explore how Accounting Seed helps you manage finances your way!
Schedule a free demo today to explore how Accounting Seed helps you manage finances your way.