Doug, Here you go as a "single line diagram" (Copy & Paste word docs)
Building Rent/Lease Dispatcher Property Taxes Management Training Office Training Tangible Taxes In-House Training Building Insurance Tech Training Mfg. Training Telephones Training Equipment Vehicle Maintenance Travel Utilities Vehicles Loans Subscriptions Inspections Liability Insurance Employee Insurance Truck Racks Toll Calls Bonds Pagers/Cell Phones Ladders Trips to Supply House Safety Equipment Radios Licenses Computer Maint. Law Suits Radio Maintenance Printing Software Office Equipment Vacation Pay Copy Machine Forms Life Insurance Holiday Pay Uniforms Accounting Business Insurance Workers Comp. Trade Association Wages Salaries Advertising Tax Preparation Stationary Theft Memberships Fuel Interest Marketing Pay Roll Taxes Uncollected Money Unbillable Hours Commissions Call Backs Unemployment 30+ Day Receivables Safety Training Bonuses Shortages Equipment Bad Checks Inventory Delivery Christmas Party Test Equipment Dues Replacement Parts Parts Storage Damages Material Purchases Tool Replacement Truck Signs Warehouse Space Files Company Tools Bank Charges Building Maintenance Legal Computers Trash Removal Incentives Postage Credit Card Sales Drug Testing Office Supplies Uniform Maintenance Retirement Plan Retainers Grounds Maintenance
[This message has been edited by electure (edited 12-29-2005).]
It sure is, part of your business expense, but even with that long list some hidden overhead costs were missed, like non-billed hours, cost to re-schedule or cancel jobs, re-staging costs, inventory tracking, truck stocking, and all those little things we tend to forget.
Do you guys actually track to that level of detail?? The way I have been attempting to set up my costs is very similar to this http://www.masterplumbers.com/utilities/costcalc/ link. Figure it in billable to nonbillable. Productive vs nonproductive. Productive is any labor and costs directly associated with that labor that can get allocated to billable time (T&M) or costed time (bid and contract work)I.E.: wage tax work comp liabilty if based on wage exposure benifits
Then nonproductive would be all costs not directly associated with actual install whether bid or T&M. I.E.: phones vans auto ins. rent/mort vacation & paid holiday bonus maintenance tools "free" estimates bidding owner's time office accountant
Figure how many billable hours you are likely to work throughout the year. For me I like to figure at least 1-1.5 hours per day per man nonproductive for stocking the truck, drive time etc. Then as the owner I am shooting for 24 hours productive billable time in the field per week and the rest administartive, meeting, selling etc. But all the productive billable hours have to cover all those overhead expenses plus the extra salary I need to live. I can't live off 24 hours a week. Take your total overhead and divide by billable hours. That is how much per hour over what wages cost you, that you need to charge to break even. Then add profit for growth (all healthy things grow)and you have your hourly rate.
I modified that calculator in a spreadsheet and it can be fun to play with the numbers. See how many more hours I have to work per week if an employee misses a day per week just to make for overhead. also to see how profit suffers if I only bill in 8 hours a week.
I still have your actuals report excel spreadsheet. In fact I took most of the format and modified a little to use it in a simpler (not necessarily better) way. I would love to see your system first hand.
now these other details like job conditions.... are these notes you put down at the bottom or do assign a dollar value to them in a report??
If you ever decide to put "A day at the Mill" on Ebay, I just might have put in a bid and take a fly out to NJ.
One expense that I seem to get a lot of is defective materials (breakers that don't work, etc). Then I have to run to wholesaler to get another one if I don't have it stocked in van. And while the wholesaler covers the cost of the defective goods, they don't cover the cost of troubleshooting and/or taking the time to get a replacement.
"Will it be cheaper if I drill the holes for you?"