ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Shout Box
Recent Posts
https://crbtech.in/e
lectrical-design/top
-plc-scada

by niamishra. 10/18/18 02:52 AM
Linear Power Supply Quits Under Load
by sabrown. 10/17/18 05:06 PM
220/230/240V 60Hz Systems
by dsk. 10/17/18 01:25 PM
SCADA interview questions and answers 2019
by niamishra. 10/17/18 03:26 AM
New in the Gallery:
What is this for?
Plug terminals
Who's Online Now
0 registered members (), 8 guests, and 26 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate Thread
Overhead and profit definition #159073
10/20/06 09:41 AM
10/20/06 09:41 AM
S
sparkync  Offline OP
Member
Joined: Oct 2002
Posts: 830
NC
Does anyone know a professional definition of Overhead and Profit? I'm updating my business plan and notes and am trying to professionally diferentiate the difference between overhead and profit.
I know overhead includes things like insurance, power bill for office, etc, etc, but where do you separate the idea of profit and overhead? Just looking for a professional way to put it on paper.
I know it sounds like a "immature business question", but I'm taking evaluation of my business, and doing some updates in the way I run it, and my rates. I've decided that my rates have to increase to cover my taxes, etc. etc. if I'm going to continue to make it. I've been on my own for about 6 1/2 years now, and need some serious reorganization.
I have found a good website that has good information on things like this, but have not entirely investigated all of it. Here is the address just in case someone else would like to see it: www.toolkit.cch.com/
Thanks Steve..


[This message has been edited by sparkync (edited 10-20-2006).]

[This message has been edited by sparkync (edited 10-20-2006).]

Business, Office, Estimating, Legal:
Re: Overhead and profit definition #159074
10/20/06 01:09 PM
10/20/06 01:09 PM
M
mahlere  Offline
Member
Joined: Nov 2005
Posts: 507
New Jersey
really simple, overhead (OH) is the money you 'need' to pay for things like insurance, advertising, holidays, bonuses, etc. Profit is what you have after every single bill you have is paid. Your salary should be in here. There are about 30-40 items that should be in a typical small business overhead. There are about 5-10 items that a typical small business owner accounts for. Leaves alot of items to be paid out of 'profit'

You can theoretically run a business imperpetuity (sp?) without a profit, so long as all your overhead was covered.

But you won't run a business long without your overhead being covered.

Does that make sense?

edited to add - OH is expenses after the direct cost of the job (COGS -Cost of Goods Sold) this pretty much is material, labor, equipment, subcontractors. Things that are directly attributed to that job.

[This message has been edited by mahlere (edited 10-20-2006).]

[This message has been edited by mahlere (edited 10-20-2006).]

Re: Overhead and profit definition #159075
10/20/06 08:45 PM
10/20/06 08:45 PM
L
LoneGunman  Offline
Member
Joined: Oct 2005
Posts: 141
Florida
Cant answer your question but youll definately want to look at the overhead list thats been posted in here before, there are so many items on it you dont even think of.


Featured:

2017 Master Electrician Exam Preparation Combos
2017 NEC Electrician
Exam Prep Combos:
Master / Journeyman

 

Member Spotlight
The_Lightman
The_Lightman
Orlando, Fl, USA
Posts: 49
Joined: August 2001
Show All Member Profiles 
Top Posters(30 Days)
sparky 11
Popular Topics(Views)
250,380 Are you busy
187,993 Re: Forum
177,543 Need opinion
Powered by UBB.threads™ PHP Forum Software 7.6.1
(Release build 20180101)
Page Time: 0.016s Queries: 14 (0.004s) Memory: 0.9532 MB (Peak: 1.0756 MB) Zlib enabled. Server Time: 2018-10-18 10:22:40 UTC