2009 Best Practices Study

2009 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

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. 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. 29. Auto Depreciation — Depreciated autos 30. Total Auto — The sum of items 28 & 29

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2009 Best Practices Study | Appendix