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OIL & GAS INDUSTRY GROWING INSURANCE OPPORTUNITI...ogging Oil or Gas Well Perforating Oil/Gas Rig or Derrick Erecting ...

...ions to producers or others, phone, gas, electric, postage, and so forth. A ch...

... or agency acquisitions cost will show up as expense on the P/L statement, but they'll reduce cash substantially. Fixed Variable: These are monthly expenses that vary every month. They include staff payroll, employee benefits, commissions to producers or others, phone, gas, electric, postage, and so forth. A check goes out every month, but not for the same amount. Most of these items are a direct expense to the agency. Take the high and low bills to create an average estimated monthly expense. ... that particular period. The budget is broken down into three parts: fixed monthly expense, variable monthly expense, and annual expenditures. Post only the projected cash outlay. Fixed Monthly Expense: These are fixed expenses incurred every month such as rent or mortgage, auto lease, equipment lease, loans, agency acquisition payments, or any other fixed monthly cash payments. Principals' salaries are often part of this list. If a business can't pay its owners every month, why be in business? These expenses are usually addressed once ... equipment or large items, the P/L statement may only expense out' taxes and depreciation. The money required for these items will simply reduce cash, and may give one a false sense of profit. Conversely the P/L statement could be showing an operating loss, due to a large deduction for depreciation, while cash flow remains positive. PREPARING MONTHLY AND ANNUAL REPORTS You now have three sets of figures: monthly fixed, fixed-variable expenses, and annual expenses. You can now prepare monthly and annual projected reports. ...