Planning/Recording - No time I have crews waiting, and time is money!
Reports/Evaluation - So many numbers, what to look for?
Adjusting - I won’t know till the end of the year. Here’s to hoping!</li></li></ul><li>Terms:<br />Revenues: Total money earned<br />Direct Costs: Expenses billed job specific<br />Gross Profits: Revenues minus direct costs<br />Overhead: Indirect costs not billed job specific<br />Net Profits: Balance remaining after Gross Profits minus overhead.<br />
Labor Burden<br /><ul><li>Labor Burden varies by companies but generally includes: FICA, FUTA, SUTA, Workman’s Comp, (Labor portion) Gen. Liability and other labor fees.
These rates vary from company and industry. They often are in the 15% - 35% range.
This burden is often overlooked or misunderstood by owners. We use a PEO to help us manage ours.</li></li></ul><li>Overhead Worksheet<br />
Overhead<br />Overheads worksheets need to have all of the categories that your accounting show for overhead.<br />Equipment can also be an overhead. (We will discuss this later.)<br />Overhead is any cost that you can not direct cost to a job.<br />The owner’s/manager’s pay is also an overhead. Dividends are separate.<br />
Labor Cost<br />These labor cost are a direct cost and should be figured into the direct cost of the job.<br />This spreadsheet shows the effect of overtime and burden on the labor costs.<br />Maintenance labor usually ranges in the 35%-42% of revenue.<br />Installs labor usually range in the 25%-35% of revenue.<br />
Equipment Cost Worksheet<br /><ul><li> Equipment is one of the biggest investments and figuring the ROI is critical.
The cost of running equipment is not only based on the purchase price but also: usage, insurance, inflation, interest, maintenance costs, fuel prices etc.
We have our mechanic job cost repairs to help us determine our real maintenance costs.</li></li></ul><li>Equipment Cost<br />
Equipment Packages<br /><ul><li> By combining a group of equipment and their costs we can determine a crew equipment cost.
You can change up the equipment mix to see the differing rates.
Don’t forget to add a line for hand tools that are part of the crew. </li></li></ul><li>Direct Cost<br /><ul><li>Add your general conditions and overhead recovery percentage.
Add the desired net profit margin. The national average is 5%-15%</li></li></ul><li>Direct Cost<br />
Company Direct Cost Summary<br /><ul><li>By using history, you can enter a % across the top to determine a projected monthly revenue.
Entering history % along the right column will give you an approximate dollar amount per direct cost item.
The light blue areas are for entering actuals to help with cost budgeting.</li></li></ul><li>Indirect Cost Summery<br />
Net Profits<br /><ul><li> Net profit is the balance after all the direct and indirect costs have been paid.