How much do I need to charge for labor?
How much do I charge for equipment?
How much do I markup materials?
How do I recover Overhead?
What Overhead Recovery Method is best for my business?
This Budgeting Spreadsheet will help you understand the fundamentals of Budgeting in your business along with how this practice allows you to know how much to charge on average per employee, markups on Cost of Goods Sold to recover Overhead, and remain PROFITABLE.
This spreadsheet will allow you to calculate your:
- Cost of Goods Sold
- Field Labor
- Equipment
- Materials
- Subcontractors
- Overhead
- Labor
- Equipment
- General Expenses
- Profit / Loss
- Overhead Recovery Methods
- Multiple Overhead Recovery (MORS)
- Single Overhead Recovery (SORS)
- Labor Rate Recovery
To understand their percentages of revenue and how you can strategically mark these up to recover your Overhead Costs in your business and earn Profit on every project that you estimate.
To understand their percentages of revenue and how much you need to markup your Cost of Goods Sold (Field Labor, Equipment, Materials, and Subcontractors) to recover this your Overhead.
To understand how much Profit (or Loss) your business will earn based on a forecasted sales number for the year. You can then see a breakdown of your Profit and Loss as a budgeted amount for the year including your Gross Profit and Net Profit. You will also learn about the Labor Efficiency Ratio and the Management Labor Efficiency Ratio as described by Greg Crabtree in Simple Numbers and Simple Numbers 2.0.
Based on your Budget, you will then see these three different ways of Overhead Recovery and the Average Employee Hour Rate along with markups for your Cost of Goods Sold (Labor, Equipment, Materials, and Subcontractors). Along with this, you will also see your charge out rate for equipment by the hour and day to recover overhead and profit on each piece of equipment.
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