Periodic Financial Review Checklist for Agency Accounting Managers

June 6, 2005

Every agency should develop a checklist for the accounting manager/bookkeeper to follow. Oak & Associates has developed this outline of typical financial management tasks. The key to any process is that it needs to be relatively easy to follow AND it must be regularly followed. The following is a brief list of key items to include on all checklists:

– Run balance sheet

– Review cash position

– Review receivables and payables

– Calculate ratios: trust, current, etc.

– Report on the analysis of ratios, cash position, A/R,

A/R to the owner

– Run aged A/R report

– Review and correct 60+ days receivables

– Report to owner on status of aged A/R

– Run monthly and year-to-date income statement

– Compare statement to last year, the budget and

industry standards

– Analyze any deviations

– Prepare monthly producer statements for owner’s

review

Quarterly

Perform the following additional analysis to quarterly income statement.

1. Calculate changes from prior quarter and last year (net change and % change)

2. Estimate projections for the next quarter for revenues and expenses

3. Calculate net profit and make recommendations

how much should be reserved

4. Review investments and debt liabilities. Make recommendation to owner on restructuring or moving to minimize payment and maximize return.

Semi Annual

1. Calculate Personnel Standards
(revenue per employee, etc.)

– Compare to industry standards

– Compare to last period and last year

2. Analyze the book of business and CSR workloads.

– Provide report to owner with recommendations. (Perform for each producer, each CSR and the agency overall)

– Determine CL & PL commission revenues and the number of accounts handled (add to CSR workload report the number of transactions if possible)

– Calculate the average size of accounts

– Compare to industry standards

– Compare to last period and last year

3. Prepare a report showing each market’s volume

– Compare to last period and last year

4. Prepare a list of top 50 accounts for each producer and the agency

– Compare to last period and last year

Annual

1. Assist the owners in developing budget for the next year

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