Common Questions
Direct answers for brokerage owners and controllers
The questions Canadian brokerage owners, principals, and controllers ask us most often — answered in plain language, with sources.
Applied Epic
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What is the Applied Epic accounting module?
It's the built-in part of Epic that maintains the general ledger and handles billing, trust, commissions, and month-end close.
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How do you run month-end close in Applied Epic?
Reconcile bank and trust, match carrier statements, reconcile direct-bill commissions, post accruals, and close the GL period — on a calendar.
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Does Applied Epic do accounting?
Yes — Epic has a built-in accounting module covering the GL, direct/agency bill, trust, reconciliation, and month-end close.
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How do you reconcile direct bill in Applied Epic?
Compare the commission the carrier reported and paid against what Epic expected on the policies, then resolve the differences.
Premium Trust Accounting
Carrier & Commission Reconciliation
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What is contingent commission? Examples and Canadian accounting
Contingent commission is a performance-based insurer payment, separate from the base commission on individual policies.
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When does a brokerage recognize commission income?
Commission is recognized when it is earned — the policy is bound and effective and the brokerage has substantially performed — not when cash arrives.
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What is premium payable to insurers?
The liability for agency-bill premium collected but not yet remitted to the insurer, net of the brokerage's commission.
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How is producer commission split accounting handled?
Recognize the full commission as income and the producer's share as commission expense or payable, matched to the same period.
Regulation & Compliance
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How long must a Canadian insurance brokerage keep its records?
Six years from the end of the last tax year the records relate to, longer for late-filed returns, objections, and wind-up records, with your provincial broker regulator setting its own rule on top.
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Is GST/HST charged on insurance brokerage commission?
Insurance commission is generally exempt from GST/HST, but some broker fees may be taxable — confirm with a CPA or the CRA.
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What are RIBO's trust account requirements?
RIBO expects Ontario brokers to hold premium in trust and report financial information; confirm the current specifics with RIBO.
Outsourcing Your Accounting
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How much does insurance brokerage bookkeeping cost?
Cost depends on premium volume, producer count, billing mix, and the state of your books; BrokerLedger charges a fixed monthly fee set on a discovery call.
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Should you outsource your brokerage's bookkeeping?
Outsource when reconciliations slip or a key person leaves. Keep it in-house when you already have brokerage depth. Most brokerages run a hybrid of internal billing plus outsourced reconciliation and close.