March 31, 2020

Why Every Insurance Agency Needs Profit First!

Insurance Agency
By: Ronald B. Allen

Why Does Every Insurance Agency Need Profit First?

You work hard running your insurance agency. It is your dream come true and you love the work. But, there are times when you get overwhelmed. The business of managing your agency seems to become more complicated with each passing year. Marketing and getting new clients has always been part of your business life. When you are dealing with insurance issues for commercial real estate, homes, apartments, and vehicles, there are times when you think you are missing the big picture because of your focus on all of the details. Then there is payroll for your expanding business and don’t forget the tax man. In this day and age, everything happens on computers, so you need to deal with IT (information technology) issues and personnel as well. By the way, are you making a profit consistent with how much time you spend and how hard you work? Probably not! So, why does an insurance agency need Profit First?

Effective Business and Cash Flow Management with Profit First

Profit First is a unique bookkeeping method that helps you see the big picture as well as every significant financial detail in your business. Why does an insurance agency need profit first? This way of keeping the books puts money aside for profit with every bookkeeping cycle. And it helps you focus in a timely manner on your expenses and cash flow issues. The bottom line with Profit First is two-fold. You build a cash reserve with your profits and you improve your budgeting and cash flow management in order to reduce unnecessary expenses.

Get Custom Reports and a Clearer Financial Picture of Your Business

At Exigo Business Solutions we use the Profit First system for clients just like you. In fact, we are Profit First Professionals, part of an elite group that offers bookkeeping and accounting, but we specialize in business profitability! When you outsource your bookkeeping to us, we will work with you to provide QuickBooks custom reports. QuickBooks is an accounting and bookkeeping package specifically designed for medium-sized and small businesses. The reports that we develop for you will uncover many financial issues that were previously hidden within your reports.

If you are tired of messy bookkeeping, poor profits, and drowning in the financial details of your insurance business, consider outsourcing your bookkeeping. Go with someone like Exigo Business Solutions, who uses the Profit First method, to get a handle on budgeting and cash flow. All while benefiting from the tools in the best small business bookkeeping package, QuickBooks.

Profit First: The Details

They always say that the devil is in the details. Well, so is that profit that you have been missing! When a business gets in financial trouble, the owner has to cut out unnecessary expenses. Unfortunately, those expenses were probably eating away at profits for years and years without you even noticing. When you use the Profit First system, one of the “expenses” to which you allocate cash each bookkeeping cycle is profit. Arithmetic being the unforgiving creature that it is, taking profit first leaves less money for other expenses. This means that you will end up confronting unnecessary expenses earlier rather than later. As the years pass, you will be accumulating profits instead of wasting money!

At Exigo Business Solutions we can help you take profit first, reduce expenses, budget, and manage cash flow. It starts with looking at your balance sheet. When you work with us, we will help you create the custom reports that you need to clearly see what is happening in your business, what money is coming in, what money is going out, and how you can optimize cash flow and profits.

An added feature of using QuickBooks along with Profit First is that QuickBooks lets you customize all of your forms and seamlessly integrate them into your business. This improves the look of your business and the clarity of your paperwork as well. And we will handle all of that for you.

Still Wondering about Outsourcing the Bookkeeping for Your Insurance Agency?

Here is a quick checklist to help you decide if you need to contact Exigo Business Solutions, use the Profit First bookkeeping method, and switch your bookkeeping software to QuickBooks.

All you want is a clear and concise bookkeeping report that tells you how your business is doing. You want the peace of mind that comes with having the whole picture of your business, all the right numbers, in one place at one time. And, knowing it is critical to your success.

Maybe your insurance agency has quit growing along with the profits. You do not know if this is as good as it gets or if you are missing something important that could make all of the difference. And, you are not getting any answers from your current financial reports.

Maybe your bookkeeping reports you have are awful and hard to figure out exactly where you stand. Not only do they indicate that your business is not doing well but also they are hard to decipher. You are embarrassed by this and not sure where to turn. It appears that the problem is deeper than just bad bookkeeping. You need to make some sound business decisions and you need someone you can trust to help you.

You have always been proud of that fact that you are in charge of every aspect of your business, including the bookkeeping. But, the bottom line has been showing more red ink of late and you have to admit that, maybe, you could use some sound advice.

Maybe you do not believe that you can take your profit first without it causing pain somewhere else in your business and your life. It has not occurred to you that you have been putting off a whole series of decisions about cutting out unnecessary expenses.

If you see yourself in any or all of these situations,contact Exigo Business Solutions today to see how using the right tools can put you on the direct path to profitability.

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