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2015 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
2015 Best
Practices Study
36.
Office Equipment Depreciation/Amortization
— Current year depreciation expense for equipment,
furniture, fixtures. Include Section 179 purchases.
37.
Total Office Equipment
— The sum of items 35 & 36
38.
IT Expenditures
— Expensed/leased computers, servers, software, wiring, maintenance and maintenance
contracts, website development/maintenance, website hosting, internet connections, & training
39.
IT Depreciation / Amortization
— Current year depreciation expense for computers, servers, software
amortization, etc. Include Section 179 items.
40.
Total IT
— The sum of items 38 & 39
41.
Telephone
— Local & long distance, cellular telephone, and fax expenses.
(Excludes leased telephone
equipment; included under Office Equipment)
42.
Postage
— Postage, Express mail, FedEx, UPS, courier services
(Excludes postage meter lease/maintenance;
included under Office Equipment)
43.
Supplies / Printing
— Office supplies, paper, copying/printing, coffee/soft drinks/break room expenses
44.
Dues / Subscriptions/ Contributions
— Professional dues/membership fees, periodical & information services
subscriptions, contributions
45.
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)
46.
Insurance
— All property & casualty insurance including employee auto insurance, and any payments for E&O
claims /settlements
47.
Professional Fees
— Expenses for CPAs, lawyers, consultants and other outside advisors
(Excludes directors’ fee
included in Administrative-Other)
48.
Bad Debts
— Any bad debts written off, claims paid
(Excludes E&O claims/settlements)
49.
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.)
50.
Education
/
Training
— Registration fees, materials, in-house training programs, etc.
(Excludes training on how
to use your agency management system or other agency technology)
51.
Miscellaneous
— Other non-specific miscellaneous operating expenses not included elsewhere
52.
Total Operating
— The sum of items 34, 37, 40-51
Administrative
53.
Amortization of Intangibles
— Acquired expirations, covenants, non-competes, etc.
54.
Officer Life
— Premium paid by agency, agency is beneficiary
55.
Interest
— All interest expense incurred
56.
Other
— Director’s fees, non-specific overhead allocations to parent companies, deferred compensation, and
any other miscellaneous administrative expenses
57.
Total Administrative
— The sum of items 53-56
58.
Total Expenses
— The sum of 25, 31, 52, & 57
PROFITABILITY
59.
Pretax Profit / Loss
— Net revenues minus total expenses
60.
EBITDA
— (Earnings Before Interest, Taxes, Depreciation, and Amortization) The agency’s profit before interest,
taxes, depreciation and amortization expenses are included.
61.
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.