Labor Profit Tip #1: For More Accurate Job Estimates, Include Fully Burdened Labor Costs for Each Employee What Will The Labor on That Job REALLY Cost? When You Don’t Include Fully Burdened Labor Cost Info, You May Be In For A Surprise… If you’re not using fully burdened labor costs for every employee’s work included …
Increase Your Profits On Every Job (Part 1) Why Use “Estimate vs. Actual” Reports? Many company owners wonder why they should bother with job costing. They think they can simply watch their checkbook and wait until tax time to see how they did LAST YEAR. Unfortunately, by then, it’s too late to fix the problems …
… Increase Your Profits On Every Job (Part 4) Here’s how to add 10% (or more) of your gross sales to your bottom line! The biggest mistake so many roofers make is to think that they’ll make more money if they sell more. BUT if you don’t have a stable and substantial gross profit on …
In this interview, Diane and Dave Sullivan (host of The Roofer Show podcast) dive into what Diane calls the “Gross Profit Rollercoaster.” They explore why ‘highs and lows’ happen in a business (when the numbers aren’t lining up) and how to avoid those ups and downs. Why this matters to you: As Dave says, “You …
In this interview, Diane and Dave Sullivan (host of The Roofer Show podcast) dive into what Diane calls the “Gross Profit Rollercoaster.” They explore why ‘highs and lows’ happen in a business (when the numbers aren’t lining up), and how to avoid those ups and downs. Why this matters to you: As Dave says, “You …
Diane Gilson’s insightful video, “Above vs. Below the Line Markups,” featured on our QuickBooks Mystery Theater, delves into the critical decision of where to place production overhead costs in financial reports and its impact on pricing strategies. She poses the fundamental question: Should these costs be above or below the Gross Profit line? The video …
Every business owner needs to know how to calculate their gross profit margin (%) and net profit margin (%). After all, it’s what shows you how much profit you’re making! As a business owner or bookkeeper, the most important numbers you’ll ever need to know may very well be your profit margins. There are two …
In this article, I’ll explain gross profit percentage and markup, AND I’ll give you 2 free “Quick Conversion Charts” to print and carry with you to quickly calculate markup and gross profit percentage. To succeed in business, it’s important to understand two key concepts: gross profit (margin) and markup. Let’s start with some definitions. What …
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 Reduce Labor Costs Know and use your true, fully burdened labor costs when estimating. Increase estimating accuracy by using costs based on specific employees (or averages …
Job Costing In QuickBooks QuickBooks is designed to help you plan, measure, and monitor company and job results. You can even use QuickBooks Job Costing Features to Achieve Your Gross Profit Goals! Use its management reporting tools to immediately SEE operating and financial results. Proactively correct problems – before they spin out of control – …
How Percentage of Completion Entries Fix Revenue Fluctuations for ‘In-Process’ Contracts The Problem with ‘In-Process Contracts’ Custom builders and project-based firms often invoice per contract stages over extended periods, from several months to over a year. As a result, income is nearly always booked either: Before costs are entered into your accounting system and/or After …
This webinar reveals proven strategies and practical tips about pre-construction contracts and agreements – so you can jump-start the success of your construction projects before you commit to taking on a job. Watch this “Pre-Construction Contracts and Agreements” video with Michael (Discover why these contracts and agreements give you a jump-start on upcoming jobs!) …
Labor Burden: If you’re struggling to understand and measure your Labor Burden and its effect on profit, these articles by Diane Gilson will teach you how to do it. We’ll start with some quick definitions of labor burden and how to calculate it, followed by a real-life example so you can see how it’s done. …
From our Better Numbers – Better Business™ management series… Diane and Ken Horst demonstrate real-life examples of how you can spot common (fixable!) profit leaks so your business can become more effective, more efficient, and more profitable. Why this matters to you: You’ll discover an inexpensive, easy-to-use tool that can help you run the same …
How Much Are You Losing by NOT Performing Underbilling Calculations for Employee Time? This Free Calculator Helps You Estimate! Underbilling for Employee Labor? Here’s what that’s costing you! Free Calculator that illustrates underbilling calculations… Here’s a free calculator to help you do the math. If you are underbilling for employee labor, use it to discover …
If you haven’t already read them, you’ll probably want to visit Part I, Part II, Part III, and Part IV of this “Tale of 4 Companies: A Job Cost & Gross Profit Drama” before beginning the following “Part V.” We’re joining Paul (owner of Paul’s Perfect Projects LLC), Walt (Production Supervisor at Paul’s), Jenn (Estimator …
Targeting Gross Profits: How Estimators and Project Managers Focus on Goals & Job Costs at Paul’s Perfect Projects If you haven’t already read them, you’ll probably want to visit Part I, Part II, and Part III of this “Tale of 4 Companies: A Job Cost & Gross Profit Drama” before beginning the following “Part IV”. As we …
How Bookkeeping Supports Job-Cost & Gross Profit Measurement at Paul’s Perfect Projects, LLC If you haven’t already read them, you’ll probably want to visit Part I and Part II of this “Tale of 4 Companies: A Job-Cost & Gross Profit Drama” before starting the following “Part III.” In Part III, Paul & Dave have just …
Paul (of Paul’s Perfect Projects, LLC) tackles the gross profit problem by showing Dave his Estimate vs. Actual variance reports. (If you haven’t already read it, you’ll want to visit Part 1 of this “Tale of 4 Companies: A Job Cost & Gross Profit Drama” before jumping into the following “Part II”…) Paul’s Approach to …
Can you really affect your gross profit by setting up a job costing system? Is it worth the time, energy, and effort involved to measure and track your numbers? Let’s visit with the owners of four (hypothetical) companies; then decide for yourself which owner’s shoes you’d prefer to step into… As background to the story …
Most small and medium-sized businesses don’t know their exact employee labor cost – or how much they should charge for their employees’ time. Cost of Labor: Why Do You Need Accurate Employee Labor Cost Calculations? I’m going to be bold and state that if you don’t have accurate labor cost calculations for every employee in …
Calculating overhead can be tricky, but QuickBooks can help you calculate and monitor your business overhead expenses more efficiently and effectively. Business Overhead Expenses: What They Are and How To Calculate Them Have you ever wondered exactly WHAT business overhead expenses really ARE? Do you know what YOUR business overhead expenses are? Or how to …
Knowing how to calculate and interpret your Gross Profit percentage (margin) helps keep your profits high and your costs low. Learn how today… What is Gross Profit Percentage? Gross Profit percentage is a measure of profitability that shows your percentage of earnings AFTER you subtract the cost of “producing” those products or services. However, that …
In this revealing transcript of the “Above vs. Below the Line Markups” video, Diane Gilson demonstrates two scenarios for determining your markup percentage based on where you account for production overhead costs on your P&L. While neither method is wrong, the second one builds more costs directly into the bid price, resulting in a more …
“Why aren’t we making more money? We’re busier than ever, I’m working harder than ever, but things just aren’t coming together like they should!” If this story sounds or feels familiar, you may want to sit in on this meeting to pick up some ideas on how to create Estimate vs. Actual Reports… It Just …