PRACTICAL GUIDE
An Insurance Agency Month-End Close Checklist
Month-end is a chance to explain the balances your team will carry into the next period. A clear close package records what was reconciled, what changed, and which questions still need an owner.
Start with a consistent cutoff
Identify the period, the reports to retain, and the preparer and reviewer for each area. Note the report dates and filters. If a report changes after review, keep the updated version and explain the change rather than silently replacing the evidence.
Confirm that the period’s known billing, receipts, disbursements, and approved adjustments have been addressed before comparing balances. Agree with your accounting team how late or unresolved activity will be handled.
Review the balances that move the business
| Area | Review | Evidence to retain |
|---|---|---|
| Cash | Reconcile bank balances and investigate outstanding or unidentified activity. | Bank statement + reconciliation |
| Customer receivables | Review open invoices, unapplied receipts, credits, and aging. | Receivable detail + explanations |
| Carrier payables | Tie detail to the ledger and retain carrier statement exceptions. | Payable detail + reconciliation |
| Producer commissions | Review the reported balance, payments, and approved adjustments. | Commission detail + payment support |
| Financial reporting | Explain material balance-sheet and income-statement movements. | Financial statements + review notes |
Use this as a review framework with your accounting team. The agency’s agreements, accounting policies, and applicable requirements determine its entries, approvals, and cash handling.
Make the explanation as clear as the number
That note explains a change. “Payables are higher this month” only describes it. For each material movement, try to connect the opening balance, activity, and closing balance using records the next reviewer can locate.
If the supporting detail does not bridge the movement, identify the gap rather than supplying a plausible story. An unexplained difference is a follow-up item until the evidence supports a resolution.
Keep a close package someone else can follow
- The reports and statements used, with their periods and filters.
- Reconciliations showing the balances compared and any remaining differences.
- Supporting transaction lists, approvals, and adjustment references.
- Brief explanations of material movements.
- A follow-up list with a responsible person and next action for each open item.
A practical file name can carry useful context: “2026-09 carrier payables review — approved 2026-10-05” tells a reader more than “final v3.” Use your own naming convention consistently and keep supporting documents together.
Finish by discussing the open questions and near-term obligations with the people who act on the reports. A completed checklist is most useful when it leads to clear decisions and a manageable next month.
Common questions
- Is carrier reconciliation the same as the month-end close?
- No. The close also includes cash, customer balances, producer obligations, other ledger accounts, and financial statement review.
- What should happen to unresolved items?
- Retain their explanation, evidence, owner, and next review date. Do not force a balance simply to finish the checklist.
- Should every report use the same cutoff?
- Use consistent cutoffs for comparisons or document the bridge when report dates differ.