How to record commission from Trust Account for Insurance Agency

Let me guide you on how to record premiums and commissions in QuickBooks Online, BelleJK.

The money doesn't belong to you until it is used to pay for service. Thus, it will only turn into income once you invoice the customer and receive payment against it. You can create a liability account to track the amount you receive from your customers. I've outlined the steps below.

1. Click the Gear ⚙ icon, then select Chart of Accounts.
2. Select New.
3. Select Other Current Liabilities under Category Type.
4. Use Insurance Accounts – Liabilities under Detail Type.
5. Enter the name you want then hit Save.
   
   

Then, create a product or service item that uses the trust liability account.

1. Tap the Gear Icon then Products and Services.
2. Click the New button.
3. For the item type, you can use Non-Inventory if the product is not part of your own inventory.
4. In the Name field, enter a description for the product or service item. Example: Retainer.
5. Click the Income Account drop-down and select an Insurance Liability account.
6. Press Save.
   
   

When creating a bill, use the same Trust Account category to post the funds correctly. This will also automatically put the transactions into the correct A/R and A/P accounts. Here's an article that you can refer to for the complete steps: Record a retainer or deposit. However, I still recommend reaching out to your accountant for other ways on how to record them. 

Additionally, QuickBooks downloads and tries to match with transactions you've entered. You can read this article for your reference: Categorise and match online bank transactions in QuickBooks Online.

Let me know if you have any other concerns about recording insurance proceeds in QuickBooks. I'll always be right here to get back to you.