Labor Burden Information Tip #5: Make Better Hiring Decisions by Thoroughly Understanding Potential Additional Costs Bad hiring decisions can have a devastating effect on your bottom line, so you want as much objective data at your fingertips as possible before you hire. You can use labor burden calculation information as a starting point when it’s …
Labor Burden Information Tip #3: To See Accurate Job-Cost Reports, Assign Labor Burden Costs to Each Job. If you’re looking for ways to make your company more profitable, getting a handle on your fully burdened labor costs is a critical place to start because it can show you how to: Estimate labor costs more accurately, Price jobs to …
Example calculations illustrate that, even when employees are paid the same amount, different fully-burdened labor rates combined with different gross profit targets can make a large difference in hourly billing rates and annual profits.
Labor Costs Are a Risky Part of Your Business. Make an Immediate Impact on Your Bottom Line by Heading off Costly Labor Over-runs Before They Get Out of Hand. 7 WAYS TO USE YOUR INFORMATION TO PREVENT LABOR COST OVER-RUNS Know and use your true, fully burdened labor costs when estimating. Increase estimating accuracy by using costs …
Most small and medium-sized businesses don’t know their exact employee labor rates – or how much they should charge for their employees’ time. Employee Time: Why Run Your Own Employee Labor Rate Calculations? It may appear that the easiest way is to “wing it”, or to adopt cost averages for your industry, but if you use either …
Income minus expenses equals gross profit. Your gross profit is the amount you use to run your company and create profits. Job-costing is how you can track the income and the costs you incur to perform each of your jobs. It’s how you get to see the gross profit you earn on each of your projects. Your perception of what you want to see from a job-costing system may be very different than another business owner’s concepts. Why? Because there is no single prescription that fits everyone’s needs.