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2007 Best Practices Study | Appendix
2007 Best Practices Study
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
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.
40. IT Depreciation / Amortization – Depreciated computers, servers, etc, software amortization. Include Section 179
items
41. Total IT – The sum of items 39 & 40