Setting Up QuickBooks Online for Insurance Agencies

1️⃣ Sign Up for QuickBooks Online

• Open your browser and go to QuickBooks Online.

• Select a plan suited for agencies (Essentials or Plus are common). These support:

  • Multiple users (account managers, producers, or accountants).

  • Bill tracking (carrier and MGA payments).

  • Custom reporting (to track commissions and agency revenue).

• Click Buy Now or Start Free Trial and create your Intuit account with an email, password, and phone number.

2️⃣ Enter Your Agency’s Business Information

• Enter your agency name, business type, and industry (Insurance Agencies/Brokerage).

• Confirm your legal structure (LLC, Corporation, Sole Proprietorship, etc.).

• Enter your business address and contact details.

Important: These details flow to invoices and tax reports—accuracy is critical.

3️⃣ Configure Core QuickBooks Settings

• Select what you want QBO to track:

  • Income & Expenses (commissions and pass‑through activity).

  • Sales Tax (if applicable for agency fees).

  • Payroll (optional; for employees/producers).

• Skip detailed Chart of Accounts setup for now—this will be aligned with Momentum AMS.

• Decide whether to connect bank accounts now or later. Many agencies wait until their CoA is finalized.

4️⃣ Customize Invoices & Payment Settings

• Go to Settings → Custom Form Styles:

  • Add your agency logo.

  • Customize fields (e.g., for agency fees or consulting charges).

  • Set payment terms.

• Go to Settings → Payments:

  • Enable bank transfers or credit card payments for agency fees only.

  • Integrate third‑party processors if required.

Best Practice: Label invoices clearly so agency fees and commissions are separated from premium pass‑throughs.

5️⃣ Set Up Users & Permissions

• Navigate to Settings → Manage Users and invite:

  • Your accountant/CPA.

  • Producers or account managers (if visibility is needed).

• Assign roles carefully—reserve full access for owners or accountants.

6️⃣ Prepare for Momentum AMS Integration

• QuickBooks’ default Chart of Accounts does not match insurance workflows. Final mapping will occur during integration.

• Post‑integration, you’ll accurately track:

  • Carrier commission deposits.

  • Agency‑bill receivables and carrier/MGA payables.

  • Premium financing receipts.

Important: Do not finalize financial categories until after integration.

7️⃣ Final Review & Next Steps

• Confirm business details, invoice customization, payment methods, and user permissions.

• Begin recording agency fees, commissions, and operating expenses if needed.

• Next, complete the Momentum AMS ↔ QuickBooks integration, where you will:

  • Map Momentum AMS transactions to QBO accounts.

  • Finalize your Chart of Accounts.

  • Test with sample transactions and reconcile against bank feeds.

Best Practices

• Test with a few transactions before going live.

• Keep premium trust funds segregated from operating accounts in QBO.

• Review mappings quarterly to ensure compliance and accuracy.

FAQs

Q: Should I connect bank feeds now?
A: You can, but many agencies wait until after integration to avoid messy re‑categorization.

Q: Do I invoice premiums from QBO?
A: Typically no. Use Momentum AMS for premium invoices. Use QBO invoices for agency fees or consulting only.

Q: When should I customize the Chart of Accounts?
A: After enabling the Momentum AMS integration, so mapping aligns with your agency workflows.

Peter’s Tips & Videos

Looking for deeper insights into agency accounting and QuickBooks Online? Peter has put together longer training videos that are packed with valuable information to help you master advanced workflows and avoid common mistakes.

We recommend watching these videos after completing the steps above so you can see how everything connects in real agency scenarios.