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2009 Best Practices Study | Appendix
2009 Best Practices Study
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Profile
14.
Gross Revenues
— The sum of items 6, 11, 12 & 13
15.
Brokerage Commission Expense
— Commissions paid to other agencies or outside brokers. Does NOT include
in-house producers that are paid on a 1099.
16.
Net Revenues
— Gross Revenues less Brokerage Commission Expense
EXPENSES
(as reported for most recently completed fiscal year-end and stated as a percentage of net revenues)
Compensation
Payroll:
The following payroll breakdown is for the entire agency including agency owners:
17.
Employees
— Salaries, commissions, bonuses, management fees, and discretionary owner compensation
18.
“Non-Employee” Producers
— Commissions, bonuses for agency’s producers compensated on 1099
19.
Temporary Help
— Expenses for outside temporary staffing, temp-to-perm staffing expenses, etc.
20.
Total Payroll
— The sum of items 17 - 19
Benefits:
21.
Payroll Taxes
— All payroll taxes
(SS, FICA, FUTA, etc.)
22.
Retirement
— Expenses related to a 401(k), ESOP/ESOT, miscellaneous retirement benefits
23.
Insurance
— Health ins, medical reimbursements, life ins (
except “key man” life
), disability insurance
24.
Other
– Wellness programs, health club memberships, gifts, etc.
25.
Total Benefits
— The sum of items 21-24
26.
Total Compensation
— The sum of items 20 & 25
Selling
27.
Travel & Entertainment/Conventions
— Airfare, meals, hotels, social/country club dues, convention related
expenses (
Excludes professional dues/memberships
)
28.
Auto Expenditures
— Lease, gas, maintenance/repair, employee parking, mileage allowances, etc.
29.
Auto Depreciation
— Depreciated autos
30.
Total Auto
— The sum of items 28 & 29
31.
Advertising / Promotion
— Promotional / advertising materials, target marketing services, fees paid to
advertising or public relations agencies, media buys, contest rewards, customer relations functions, gifts,
telemarketing, etc.
32.
Total Selling
— The sum of items 27,30 &31
Operating
33.
Occupancy Expenditures
— Total rent, utilities, building/grounds maintenance, property taxes, janitorial services,
storage & other building related expense. (
net rental/sublet income against Occupancy Expense
)
34.
Occupancy Depreciation/Amortization
— Building depreciation, leasehold amortization
35.
Total Occupancy
—
The sum of items 33 & 34
36.
Office Equipment Expenditures
— Leases and expensed equipment purchases including copier
leasing/maintenance, telephone & fax leasing/maintenance, postage meters lease/maintenance, office furniture &
fixtures leasing/maintenance
(Excludes IT equipment)
37.
Office Equipment Depreciation/Amortization
— Depreciated equipment, furniture, fixtures. Include Section
179 purchases
38.
Total Office Equipment
— The sum of items 36 & 37
39.
IT Expenditures
— Expensed/leased computers, servers, software, wiring, maintenance and maintenance
contracts, website development/maintenance, website hosting, internet connections, & training.