Accountant for finance and insurance

Whether you're a life insurance representative, property and casualty insurance broker, financial planner, mortgage broker, or financial services firm, in Quebec, your accounting reality is unlike any other. Your revenue comes from first-year commissions, renewal commissions, and production bonuses, with potential chargebacks when a policy lapses. And the VAT system works against your intuition: most financial services are exempt, which limits your input tax credits. You need an accountant who understands these mechanisms, not a generalist who's just discovering them in your file.

That's exactly what we do at Bankeo: we introduce you, free of charge, to the ideal accountant for your firm—one who understands AMF compliance, the allocation of taxable and exempt income, and the incorporation of a financial services firm. You can meet with as many accountants as you need, without obligation, and we'll stay by your side for as long as necessary.

• Fluctuating income: high first-year commissions, then thinner renewals, to be smoothed out to cover your provisional payments.
• Commissions are being reverse-charged when a policy is cancelled at the start of the contract: a provision must be made, otherwise the cash flow shortfall will be painful.
• VAT goes against the grain of the rest of the economy: financial services are largely exempt, therefore credits and refunds on inputs are limited, with mandatory breakdown if you also charge taxable fees.
• The choice of structure: remaining independent or joining the firm, depending on your license, your level of commissions and your tax deferral needs.
• Compliance costs to be budgeted for each year: AMF permit, professional dues (CSF, ChAD), continuing education (UFC), professional liability insurance.
• Business development expenses to be documented closely: business meals deductible at 50%, mileage, events and client gifts.
• The value of your block of business: renewals and clientele to be structured now in view of a sale, transfer or succession.

• Reconcile the T4A slips issued by insurers with your commission statements, then report in T2125 (federal) and TP-80 (Quebec), or in T2 and CO-17 if you are incorporated.
• VAT (5%) and VAT (9.975%): insurance brokerage and most financial services are exempt; only taxable services count towards the small supplier threshold of $30,000.
• Break down exempt and taxable income to claim ITC and ITR vouchers, and document the method in case of an audit by Revenu Québec.
• Make provisional tax payments as soon as your net tax exceeds $1,800, both to the CRA and to Revenu Québec (threshold applicable to Quebec residents).
• If you have staff: complete DAS (taxes, RRQ, RQAP, FSS, CNESST) and production of T4s and Relevé 1s.
• Comply with the separation of client funds required by the AMF, including the separate account for premiums collected in property and casualty insurance.
• Keep the documents for your professional contributions and your UFC: they are deductible, provided they are claimed correctly.

Are my commissions taxable? Most insurance brokerage and financial services commissions are exempt from VAT: you don't charge taxes, but your input tax credits are limited. However, separately billed consulting fees may be taxable above the $30,000 small supplier threshold. An industry accountant can break down your income and clarify your situation.

Should I incorporate? Often, yes, above a certain commission level: incorporation allows you to defer taxes, smooth out fluctuating income, and structure your practice. However, you must verify your eligibility to incorporate based on your license and assess the added costs (T2, CO-17, financial statements). We can connect you with an accountant who will work out the calculations with you.

Combien coûte un comptable pour ce secteur ? Selon le Baromètre Bankeo, fondé sur 1 248 dossiers réels (2024-2026), la médiane d'un comptable au Québec tourne autour de 3 000 $ par année, de 500 à 6 000 $ selon le secteur et la complexité. Le jumelage Bankeo est gratuit : vous payez votre comptable directement, aux honoraires habituels du marché.

How can I switch accountants in my industry without the stress? We'll do it with you: you don't have to manage the transition alone. We'll introduce you to an accountant free of charge who understands commissions, renewals, and AMF compliance, and the transfer of your files (T4A slips, commission history, DAS) will be scheduled at the right time of year, often after the filing deadline. And if things don't work out, even in six months, we'll find you another one at no cost.

Local or remote accountant for finance and insurance? Both work very well: what matters is that they understand your specific needs, the VAT allocation of exempt services, commission chargebacks, and the incorporation of a practice. Many representatives and brokers now work with remote accountants, handling files and signing documents online. We'll present you with the best match based on your preference, near you or anywhere in Quebec.

How do you manage commission refunds when a policy is cancelled? It's a cash flow management strategy to implement early: when a policy is cancelled early in the contract, the insurer reclaims a portion of the commission already paid. An accountant specializing in this sector sets aside a provision and adjusts your advance payments to ensure these reclaims don't create a financial shortfall. We connect you with someone who has already encountered this mechanism, not someone who is discovering it for the first time in your case.