An account current is defined as a statement given to sales agents to give them a snapshot of how they will earn commissions. These statements are very common in the insurance industry wherein individuals in the sales department and team needs to know regarding on how many policies are canceled and sold as well as the premiums paid and other types of commission that will directly affect the commission of each agent paid by the insurance company. In other ways, an account current statement is the same with the traditional financial statement provided by an accountant. These statements list all the profits, revenues, losses, expenses and other associated liabilities and assets.
Many insurance companies utilize a software program for a fair technical accounting and to maintain concrete internal records. Aside from keeping records and information in an aggregate way, it also has the capacity to store individual information regarding the account current of each employee. The main purpose behind this, in the insurance industry, is to determine old insurance policies’ payment of residuals. As clients renew their policies, sales worker or sales person who was able to sell that policy will in turn receive payment for their successful sale. This information will then be stored and shown in his or her commission payment stub where he or she can keep in track with the paid commissions brought by the sold policies.
While sales workers receive a statement of their account current for their different activities, brokers also get the same statement. Brokers receive a part of the commission from each sales obtained by sales workers. The account current of brokers typically have many details associated to the commission payments provided by the company. These statements include individual statement for each individual sales worker and the summary of the made activities of the broker. Furthermore, brokers may have an office that is subsidiary to the main office of the insurance company which may require a financial statement to check the efficiency of the office.
Prior to each account current, liabilities and assets may not be at hand. These people do not usually have significant assets to sell an insurance policy. These individuals may work as a single unit, working as an independent agent in a particular region. For these types of individual, the account current includes reimbursement of personal assets upon using it for the sake of the business. In this case, the statement needs to include information prior to the reimbursement for tax purposes. Individual workers need to keep this information to claim a reimbursement on taxes and to lower their entire tax liability. These statements are valid enough to withstand tax deduction.
Selling may be a hard task, but in order to create a stable account current, a sales workers need to work harder to get great commissions. Insurance policies are in demand today, with the right approach and technique in selling these policies, higher commissions will be obtained as well as a healthy account current.