Table of Contents Table of Contents
Previous Page  201 / 204 Next Page
Information
Show Menu
Previous Page 201 / 204 Next Page
Page Background

2013 Best

Practices Study

201

2013 Best Practices Study

Key Benchmarks

Mgmt. Perspectives

Profile

Revenues

Expenses

Profitability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

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, etc, software

amortization. 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.