The tax laws are constantly changing, and the client’s expectation is such that errors are not readily acceptable. Revenue is a crucial factor when calculating the cost of insurance because the more income your business brings in, the https://www.bookstime.com/ more potential risks it faces. According to a study by AdvisorSmith of more than 43 insurance providers, as of 2021, premiums for cyber insurance ranged from $650 to $2,357, with the average annual cost being $1,589 (or $132 per month).

• We know you would rather spend your time selling insurance policies, not on accounting details.
• In times of uncertainty and financial stress, it seems increasingly important for the insurance sector and broader financial services industry to maintain connections and be well-positioned to serve clients.
• This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business.
• As well, FreshBooks provides the option of allowing your clients to make secure online payments.
• “They,” said agencies would never want someone in their books… But Angela knew that agencies needed expert guidance and support.

One step further can easily result in legal actions against you coming from the clients, investors, or other third parties that have been negatively affected by your error. But no matter how good you are at your job and how much experience you have, any logical insurance accounting accountant knows mistakes are bound to occur. In fact, if you opt to do business without it, you’ll likely struggle to find new clients and grow your business. For more detailed information, check out our guide on calculating the cost of workers comp insurance.

Pioneered Remote Accounting

With 19 years of insurance agency consulting experience under her belt, Angela has also been a regular speaker at the AMS National Users’ Group Conferences and teaches local AMS Users’ Groups throughout the country. When creating their risk management program, accounting firms need to consider a variety of potential exposures. While it’s understandable that cost will be a consideration for any accountant looking to purchase insurance, remember that the cost of not having insurance will be substantially higher.

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