Many firms are struggling with the limited cash application or auto-cash processing functionality provided by their core administration or accounting systems.
The process of applying incoming payments to the broker receivables can be a manual, labour intensive, high cost process which is frequently inaccurate and error prone. This results in inefficient process increasing the time to post cash, research exceptions and correct inaccurate allocations.
The cash allocation process is often further complicated for many companies struggling to control and process receivables efficiently because they have inadequate operational accounting to allow effective and efficient management of their brokers.
The answer? An integrated broker management solution that creates a complete integrated operational accounting system from your transactional records.
A leading–edge broker management solution can offer companies the following 4 core standalone functions:
1. Creation of a brokers’ ledger integrated to your firm’s general ledger(s).
2. Creation and transmission of your firm’s statements of account to brokers.
3. Reconciliation of brokers’ statements of account, received from brokers in reply to your brokers’ ledgers records.
4. Automatic application of gross and net premiums received from brokers against open accounts receivable items in the brokers’ ledger.
In this way, each of these four functions can be used separately or can work in conjunction with the others to improve the efficiency and effectiveness of your firm’s broker operations.
So for a real solution to broker management, it’s all about getting the right solutions in place. With the right implementation, firms could have real-time 24/7 cash allocation, real-time 24/7 accounting, improved credit control performance and reduction of bad debt.