Setting Up Your Chart of Accounts in Momentum AMS & QuickBooks

Setting Up Your Chart of Accounts in Momentum AMS & QuickBooks
The Chart of Accounts (CoA) is a structured list of accounts used by your agency to categorize financial transactions. In an insurance agency, this includes items like trust accounts, commissions, receivables, and payables. A properly configured CoA ensures seamless integration between Momentum AMS and QuickBooks, accurate bookkeeping, and compliance with trust accounting requirements.

Best Practice: Use the provided Excel template to establish your agency’s CoA. Customize only as needed, and keep categories clear to simplify reporting and reconciliation.

1️⃣ Understand the Chart of Accounts

The CoA categorizes revenue, expenses, liabilities, and assets.
In Momentum AMS, your CoA is the foundation for syncing transactions into QuickBooks.
A strong setup helps ensure accurate financial oversight and compliance.

2️⃣ Prepare Your Chart of Accounts

Use the Momentum Quickbooks Chart of Accounts (recommended). It includes the most important categories:
- Accounts Receivable (AR): Clients and finance companies.
- Accounts Payable (AP): MGAs and insurance carriers.
- Commission Income & Expenses.
- Agency Fees.
- Trust Accounts.
Modify as needed for your agency’s structure while keeping categories organized.

3️⃣ Set Up Your Chart of Accounts in QuickBooks

QuickBooks includes a generic CoA for general businesses.
Insurance agencies need specialized categories.
Options to set up:
- Manually create accounts.
- Import a pre‑built CoA (Excel template provided).

4️⃣ Import the Chart of Accounts

Log into QuickBooks Online.
Go to Import Data.
Select Chart of Accounts and upload the Excel file.
Review the list and uncheck duplicates/unneeded accounts.
Click Next and complete the import.

Note: QuickBooks will highlight any errors for correction before re‑importing.

5️⃣ Verify and Organize Accounts

Review imported accounts carefully. Check for:
- A dedicated Trust Account to separate agency vs. client funds.
- Structured AR and AP categories.
- Accurate Commission Income & Expense tracking.
Deactivate unnecessary default accounts (e.g., “Cost of Goods Sold”) to keep records streamlined.

6️⃣ Sync with Momentum AMS

Once the CoA is finalized in QuickBooks, connect Momentum AMS.
Integration ensures:
- Automatic journal entries.
- Accurate mapping of receivables, payables, commissions, and fees.
- Reduced manual bookkeeping.

Best Practices

Keep trust funds clearly separated in both systems.
Run a test sync with Momentum AMS before going live.
Review your CoA quarterly to ensure accuracy and compliance.

Conclusion

A properly structured Chart of Accounts is the backbone of accurate financial reporting for insurance agencies. By preparing your CoA, importing it into QuickBooks, and syncing with Momentum AMS, you’ll streamline accounting, reduce manual entry, and ensure compliance.

For additional help, contact the Momentum AMS Support Team.

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