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2011 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2011 Best
Practices Study
151
13.
Miscellaneous
— Income from countersignatures fees, gains/losses on fixed or intangible assets, life insurance
proceeds
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-Employees” 1099 Producers /Temporary Help
— Commissions, bonuses for agency’s producers
compensated on 1099. Also includes expenses for outside temporary staffing, temp-to-perm staffing
expenses, etc.
19.
Total Payroll
— The sum of items 17 - 18
Benefits:
20.
Payroll Taxes
— All payroll taxes
(SS, FICA, FUTA, etc.)
21.
Retirement
— Expenses related to a 401(k), ESOP/ESOT, miscellaneous retirement benefits
22.
Insurance
— Health ins, medical reimbursements, life ins (
except “key man” life
), disability insurance
23.
Other
– Wellness programs, health club memberships, gifts, etc.
24.
Total Benefits
— The sum of items 20-23
25.
Total Compensation
— The sum of items 19 & 24
Selling
26.
Travel & Entertainment/Conventions
— Airfare, meals, hotels, social/country club dues, convention related
expenses (
Excludes professional dues/memberships
)
27.
Auto Expenditures
— Lease, gas, maintenance/repair, employee parking, mileage allowances, etc.
28.
Auto Depreciation
— Depreciated expense for current year that is associated with auto only.
29.
Total Auto
— The sum of items 27 & 28
30.
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.
31.
Total Selling
— The sum of items 26, 29 & 30
Operating
32.
Occupancy Expenditures
— Total rent, utilities, building/grounds maintenance, property taxes, janitorial
services, storage & other building related expense. (
net rental/sublet income against Occupancy Expense
)
33.
Occupancy Depreciation/Amortization
— Building depreciation, leasehold amortization
34.
Total Occupancy
— The sum of items 32 & 33
35.
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)