Folio Reconciliation

• What is reconciliation?
  Reconciliation is the process of checking your records against records provided by someone else. For example, each month your bank sends you a statement telling you how much they withdrew from your checking account to cover the checks you wrote. When you compare your check register against that statement, you are reconciling your outflow of money. You compare your records to those of the bank to verify they withdrew the right amount.
  
  Folio Reconciliation is the same process only it verifies that the company has credited you for the correct premium. Accountants use terms like Accounts Payable, and Accounts Receivable. In order to make sure you are receiving all that you are entitled to, you must keep records of what you are owed. The sales record book is inadequate for this kind of record keeping. Inadequate because it only records new business while the bulk of the income for most agencies comes from renewals (service commission). Needless to say, if your agency has any size at all this kind of record keeping requires a computer program. We have just what you need.
  
  
• Why do it?
  The answer to this question goes to the very foundation of business practices. Businesses are in business for one reason -- to make money. General Motors is in the business of making money. They make and sell cars to do that. Likewise, insurance agencies are in business to make money. They sell insurance to do that. Your DM tells you your business is selling insurance. That is just plain wrong.
  
  So, if making money is your business, it makes sense to follow the standard practice of managing your Accounts Payable, and Receivable. You can rest assured that GM makes sure the Auto Dealers pay them everything they should. And the insurance carrier makes sure they get paid for the insurance you sell. Doesn't it seem right that you should make sure you get paid for everything you sell?
  
  
• I'm a Farmers agent. Can I use Client Vision for this?
  No -- for two reasons. First, Client Vision only downloads Auto, Fire, Life, and some Umbrellas. It doesn't download Commercial, Boat, or any other policy. Second, using data downloaded by Farmers to reconcile Farmers folio is like asking the bank if their bank statement is correct. Reconciliation is the process of comparing your records against theirs. Period.
  
  
• What to look for.
  There are a lot of things to look for. Here is the short list:

1. Policies that were assigned improperly to someone else (or not at all).
2. Policies where the commission was computed incorrectly.
3. Policies that lapsed and the charge back was more than your commission (i.e. you were paid on a discounted premium but the charge back was computed on the full premium). Discounts could be on commercial policies, or personal lines. For example, multi-car, anti-lock brakes, passive restraints, YES, protective devices, and so on -- you know the list.
4. 500, 700, or purchased policies that you are servicing but not being paid for because they didn't get assigned properly.
5. 500, 700, or purchased policies that lapsed and you were charged back premium that was paid to the previous agent.
6. Commission that disappeared after an agent number change (district change, etc).
7. Policies that were "gifted" to another agent without your knowledge (ie. to help a career agent make the run to daylight).
8. You get the idea, and can take it from here.
   

• How do you do it?
  Buy our program and we will teach you.