2009 Best Practices Study

2009 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

40. IT Depreciation / Amortization — Depreciated computers, servers, etc, software amortization. Include Section 179 items 41. Total IT — The sum of items 39 & 40 42. Telephone — Local & long distance, cellular telephone, and fax expenses. (Excludes leased telephone equipment; included under Office Equipment) 43. Postage — Postage, Express mail, FedEx, UPS, courier services (Excludes postage meter lease/maintenance; included under Office Equipment) 44. Supplies / Printing — Office supplies, paper, copying/printing, coffee/soft drinks/break room expenses 45. Dues / Subscriptions/ Contributions — Professional dues/membership fees, periodical & information services subscriptions, contributions 46. 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) 47. Insurance — All property & casualty insurance including employee auto insurance, and any payments for E&O claims /settlements 48. Professional Fees — Expenses for CPAs, lawyers, consultants and other outside advisors (Excludes directors’ fee included in Administrative-Other) 49. Bad Debts — Any bad debts written off, claims paid (Excludes E&O claims/settlements) 50. 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.) 51. Education / Training — Registration fees, materials, in-house training programs, etc. (Excludes training on how to use your agency management system or other agency technology) 52. Miscellaneous — Other non-specific miscellaneous operating expenses not included elsewhere 53. Total Operating — The sum of items 35, 38, 41-52 Administrative 54. Amortization of Intangibles — Acquired expirations, covenants, non-competes, etc. 55. Officer Life — Premium paid by agency, agency is beneficiary 56. Interest — All interest expense incurred 57. Other — Director’s fees, non-specific overhead allocations from parent companies, deferred compensation, and any other miscellaneous administrative expenses

58. Total Administrative — The sum of items 54-57 59. Total Expenses — The sum of 26, 32, 53, & 58

PROFITABILITY

60. Pretax Profit / Loss — Net revenues minus total expenses. 61. EBITDA — (Earnings Before Interest, Taxes, Depreciation, and Amortization) The agency’s profit before interest, taxes, depreciation and amortization expenses are included. The sum of items 29, 34, 37, 40, 54, 56, and 60. 62. 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. 63. Operating Pre-Tax Profit — Pretax profit minus contingents, bonus and investment income. 64. Pro Forma EBITDA — See items 61 (EBITDA) and 63 (Pro Forma Pretax Profit).

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2009 Best Practices Study | Appendix