Insurance Accounting Software Key Terms

Learn insurance accounting software key terms to maximize program usage and productivity

Learning to work with insurance accounting operations becomes simple when you take the time to learn and understand insurance accounting software key terms, which give you insight behind the accounting practices. Knowing the terminology also gives you a professional edge as you consult with clients and work with accounts. Learning insurance accounting software key terms makes it easier to work the programs so you get the results you need. Once you know these terms, you can also help ensure that your clients understand them as well.

 

Technical accounting

Insurance accounting software uses technical accounting to input data then manipulates it for optimal performance.
Try: PRLog offers information and an article about accounting software that you could use for the insurance business. It stresses the importance of technical accounting.

Account payable

Account payable, also called AP, is a transaction that someone must pay in full when he or she receives a receipt. Usually a pay-by date is included with an AP. You can have an AP due to another company, or you may bill clients using an AP system. An account payable does not allow for partial payments, and insurance computer software keeps track of the account payable accounts.
Try: IDIT I.D.I. Technologies offers Insurance Software Solutions, a site highlighting software for insurance accounting. It covers options such as account payable functionality.

Account receivables

When a client uses a service or product and doesn't pay for it immediately, the company adds the information to an asset or balance sheet and sends out an invoice for the service or product. Insurance software programs keep track of these transactions and mark them as account receivables until the client pays the bill.
Try: Cash Flow Manual not only defines account receivables in great detail, it also offers an article explaining how it all works.

Premium

A premium is the amount a person or company pays for his or her insurance policy.
Try: FinWeb.com provides information on insurance premiums and includes how some companies calculate your premium.

Multiple payers

Sometimes insurance companies need to take multiple payers into consideration when doing their accounting. Instead of on organization taking responsibility for payment, multiple payers have more than one organization splitting the bill.
Try: Elsevier B.V. offers information detailing the difference between single payers and multiple payers. It highlights different countries that have begun using the multiple-payer system.

Multiple currencies

Often insurance and accounting data includes input from different countries, and the exchange rate constantly evolves. Software that works with multiple currencies takes the different exchange rates from different regions and converts them to the user's main currency.
Try: Dalhousie University Mathematics and Statistics offers a tutorial for those interested in learning more about multiple currency in accounting. It gives examples of how software works with multiple currencies.

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