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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
40.
IT Depreciation / Amortization
— Depreciated computers, servers, etc, software amortization. Include Section 179
items
41.
Total IT
— The sum of items 39 & 40
42.
Telephone
— Local & long distance, cellular telephone, and fax expenses.
(Excludes leased telephone equipment;
included under Office Equipment)
43.
Postage
— Postage, Express mail, FedEx, UPS, courier services
(Excludes postage meter lease/maintenance; included
under Office Equipment)
44.
Supplies / Printing
— Office supplies, paper, copying/printing, coffee/soft drinks/break room expenses
45.
Dues / Subscriptions/ Contributions
— Professional dues/membership fees, periodical & information services
subscriptions, contributions
46.
Taxes / Licenses
— Miscellaneous local & franchise taxes, sales tax, other property taxes, license fees.
(Excludes
property taxes entered under Occupancy, payroll taxes, & state/federal income taxes)
47.
Insurance
— All property & casualty insurance including employee auto insurance, and any payments for E&O
claims /settlements
48.
Professional Fees
— Expenses for CPAs, lawyers, consultants and other outside advisors
(Excludes directors’ fee
included in Administrative-Other)
49.
Bad Debts
— Any bad debts written off, claims paid
(Excludes E&O claims/settlements)
50.
Outside Services
— MVRs, bank fees, employment fees, moving expenses and all other outside service expense
including those used to deliver value added services to the agency’s clients
(e.g. Zywave, actuarial services, COBRA
administration, etc.)
51.
Education
/
Training
— Registration fees, materials, in-house training programs, etc.
(Excludes training on how to
use your agency management system or other agency technology)
52.
Miscellaneous
— Other non-specific miscellaneous operating expenses not included elsewhere
53.
Total Operating
— The sum of items 35, 38, 41-52
Administrative
54.
Amortization of Intangibles
— Acquired expirations, covenants, non-competes, etc.
55.
Officer Life
— Premium paid by agency, agency is beneficiary
56.
Interest
— All interest expense incurred
57.
Other
— Director’s fees, non-specific overhead allocations from parent companies, deferred compensation, and
any other miscellaneous administrative expenses
58.
Total Administrative
— The sum of items 54-57
59.
Total Expenses
— The sum of 26, 32, 53, & 58
PROFITABILITY
60.
Pretax Profit / Loss
— Net revenues minus total expenses.
61.
EBITDA
— (Earnings Before Interest, Taxes, Depreciation, and Amortization) The agency’s profit before interest,
taxes, depreciation and amortization expenses are included. The sum of items 29, 34, 37, 40, 54, 56, and 60.
62.
Pro Forma Pretax Profit
— The agency’s profit if all “discretionary” expenditures made for the benefit of the
owners, based solely on ownership, were removed and all extraordinary / non-reoccurring expenses or revenues
were normalized.
63.
Operating Pre-Tax Profit
— Pretax profit minus contingents, bonus and investment income.
64.
Pro Forma EBITDA
— See items 61 (EBITDA) and 63 (Pro Forma Pretax Profit).