Insurance Month End Close Checklist
What This Close Playbook Covers
This playbook provides a standardized month-end close process for insurance agencies, MGAs, wholesalers, program administrators, and carriers.
The objective is simple: Complete reconciliation before producing financial statements. Month-end should validate accounting-not create it.
Recommended Frequency: Monthly
Estimated Completion Time: 1–5 business days depending on transaction volume
Month-End Close Dashboard
| Activity | Status |
|---|---|
| Premium Accounting Complete | |
| Cash Application Complete | |
| Trust Reconciled | |
| Carrier Statements Reconciled | |
| Carrier Settlements Reviewed | |
| Commission Accounting Complete | |
| Financial Statements Reviewed | |
| Executive Reporting Complete |
Phase 1 - Premium Accounting
Verify:
- All policies posted
- Endorsements processed
- Cancellations processed
- Return premium processed
- Audit premium processed
- Premium adjustments reviewed
- Outstanding policy exceptions investigated
Phase 2 - Cash Application
Confirm:
- Customer payments posted
- EFT activity reviewed
- Lockbox activity reviewed
- Unapplied cash minimized
- Partial payments reviewed
- Payment exceptions resolved
Phase 3 - Trust Accounting
Complete:
- Trust reconciliation
- Trust variance review
- Outstanding trust adjustments
- Trust balance validation
- Trust to General Ledger reconciliation
Phase 4 - Carrier Accounting
Verify:
- Carrier statements received
- Carrier statements imported
- Settlement differences investigated
- Outstanding carrier balances reviewed
- Carrier settlement approvals complete
- Carrier payment schedule reviewed
Phase 5 - Commission Accounting
Review:
- Producer commissions
- Broker commissions
- MGA commissions
- Commission adjustments
- Commission exceptions
- Manual overrides approved
Phase 6 - Reconciliation
Complete:
- Premium reconciliation
- Trust reconciliation
- Bank reconciliation
- Carrier reconciliation
- Company payable reconciliation
- General Ledger reconciliation
Phase 7 - Financial Review
Review:
- Balance Sheet
- Income Statement
- Premium production
- Trust report
- Carrier payable report
- Cash position
- KPI dashboard
Phase 8 - Controller Review
Confirm:
- Outstanding exceptions documented
- Manual journal entries approved
- Financial variances explained
- Reconciliation complete
- Reports ready for CFO review
Phase 9 - CFO Review
Review:
- Executive dashboard
- Financial statements
- Significant variances
- Cash position
- Carrier exposure
- Operational KPIs
Phase 10 - Month-End Signoff
| Task | Complete |
|---|---|
| Controller Approval | |
| CFO Approval | |
| Month Closed | |
| Reports Distributed |
Month-End Red Flags
Investigate before closing if:
- Trust variance exists
- Carrier statements missing
- Reconciliation incomplete
- Manual journal entries increasing
- Unapplied cash unusually high
- Settlement differences unresolved
- Financial reports require manual spreadsheets
Month-end should never close with unexplained balances.
Controller KPI Review
| KPI | Target | Actual |
|---|---|---|
| Days to Close | <5 | |
| Premium Reconciliation | 100% | |
| Trust Variance | 0 | |
| Carrier Settlement Accuracy | 100% | |
| Unapplied Cash | ||
| Manual Journal Entries | ||
| Outstanding Exceptions | 0 |
Continuous Improvement
After every close ask:
- What delayed close?
- Which reconciliation required the most effort?
- Which spreadsheet was still required?
- Which manual process should disappear before next month?
- What can be automated before the next close?
Month-end should become easier every month.
Schedule a PremiumAccounting.ai month-end assessment to automate reconciliation, carrier settlements, trust accounting, and reporting while keeping QuickBooks, Sage Intacct, Xero, or Workday as your General Ledger.
Frequently Asked Questions
Month-end activities should begin on the first day of the month through continuous reconciliation rather than waiting until the final business day.
Outstanding reconciliations, unapplied cash, missing carrier statements, manual journal entries, spreadsheet dependency, and unresolved exceptions are the most common causes.
Completing reconciliation before financial reporting is the most critical step.
Yes. The controller should confirm reconciliation, balances, and documentation before the CFO reviews financial results.
Continuous reconciliation, standardized workflows, automation, and proactive exception management consistently reduce close time.
PremiumAccounting.ai serves as the insurance accounting subledger between your policy administration system and your General Ledger, automating premium reconciliation, trust accounting, carrier settlements, commissions, workflow approvals, and executive dashboards to significantly reduce month-end effort.