Use Your Financial Statements to Better Your Agency

Are you gaining valuable insights from your agency's financial statements? Not only do your financial statements provide a view into your agency's financial health, but they allow you to see if your goals are on-track. Get in a routine and gain the most from your financial information.

Look at them consistently.

Obtain monthly reports including cash flow statements, balance sheets, and income statements to review your agency's financial performance for the month. Reviewing them consistently will lower the risk of any surprises in your statements. 

Understand and explain them.

Review the documents with your advisory team to make sure you understand each statement and can explain each section of the statement. Don't be afraid to ask questions on anything within the documents.

Make sure they are accurate.

Once you understand the statements, you can ensure they accurately represent your financial performance. Having thorough recordkeeping and timely data entry is crucial for evaluating accuracy

Use them.

Use these financial statements for future business plans, to find month-over-month trends, and establish your key performance indicators. Tidy and updated financial statements provide a clear snapshot for banks and investors to see your agency's underlying value.

If you are looking to grow your agency by buying out a partner, buying another agency, or adding a producer, our insurance agency lenders will work alongside you to find the best financing fit for you. Learn more at Financing for Independent Insurance Agencies | Security Financial Bank (sfbank.com)