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  • Overhead!!

    I am looking for a "template" or preferably an 'Excel worksheet" that I can use to calculate my overhead expences. Does anyone have a sheet that automaticly calculates this when you enter in the numbers and that is willing to share? Thanks in advance.
    sigpic
    www.bnclawncare.com

  • #2
    Are you trying to figure this out by the month or down to the hour?
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    • #3
      In accounting Overhead refers to "all non-labor expenses required to operate your business. These expenses are either fixed or variable" Maybe you could give us a little more insight into what you are trying to achieve. Are you running accounting software like Quick Books or Simply Accounting? If so, you can generate these reports anytime you wish, brake them down, export to excel for analysis etc.
      Andy
      Halifax, Nova Scotia

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      • #4
        why is labor not included in overhead?
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        • #5
          Overhead refers generally to the ongoing administrative expenses of your business which cannot be attributed to any specific business activity, but are still necessary for the business to function. Examples include rent, utilities, and insurance, depreciation etc.
          Andy
          Halifax, Nova Scotia

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          • #6
            Ok, so even if you decided not to do anything tomorrow and take the day off, you will still have costs for that day and that is the overhead to keep everything going.
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            • #7
              Ok, so even if you decided not to do anything tomorrow and take the day off, you will still have costs for that day and that is the overhead to keep everything going.
              Yes that is correct, things like insurance, rent, heat etc they are fixed overhead costs, we can't do anything to change them, labor is variable as are sales costs as it depends on workload and what the sales is bringing in.
              Andy
              Halifax, Nova Scotia

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              • #8
                At what point should a business owner consider labor costs when trying to determine the financial health of their business?
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                • #9
                  At what point should a business owner consider labor costs when trying to determine the financial health of their business?
                  Any day of the week actually, run an income statement.

                  Because it was our first year I checked up on every job we did to measure the profitability, now I have a very good handle on what we need to charge, we lost on three but all in all we made it up and I am very pleased with the after tax income, I finished the financials almost a week ago and everything is filed and finished for 2009.

                  What is important to me is why did we loose and change the problem or whatever the issue is right away, I know we made money but undercharged on a few also which has also been corrected.

                  I find/found the hardest jobs to quote were wood cutting and chipping, so we are straight by the hour and if you are not happy about the progress you can stop us any time, I will give you a rough guess but it's impossible quoting downfall, we can cut trees down, block them up and chip the brush two to three times as fast as cleaning up downfall as it always a major mess.
                  Andy
                  Halifax, Nova Scotia

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                  • #10
                    I think that is fantastic you do that. Would newer lawn care companies have a tough time doing that though? Keeping track of different job categories to see which category they tend to make more money on and which they lose money on?
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                    • #11
                      I think that is fantastic you do that. Would newer lawn care companies have a tough time doing that though? Keeping track of different job categories to see which category they tend to make more money on and which they lose money on?
                      Gosh we have to know, it is critical as to whether we survive or not. If we are working our butt off and barely making ends meet then we need to know before the repo guy comes calling and what can we do to fix it.

                      You can make it as simple as you want but everyone of us should be keeping some type of accounting and it should be updated no less than every three days, it honestly doesn't take that long.

                      Many use Quick Books which is excellent and easy to learn, personally I use Simply Accounting which too is easy but very powerful and a little harder to learn however even if you have to pay someone to do the initial set up it would be in my opinion my first investment. I have the Gopher Software however I couldn't do the tax the way it needs to be done and I need to be able to pull data and run it in Excel which I use to analyze the profit per job, by employee, by crew etc.

                      Your financial statement is a road map, you know where you want to go however without the map you will never know if you are getting there or even close to the mark.

                      It's great having money in the bank account however where and which jobs is generating the best cash flow and which ones are an issue.
                      Andy
                      Halifax, Nova Scotia

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                      • #12
                        I am looking for a "template" or preferably an 'Excel worksheet" that I can use to calculate my overhead expences. Does anyone have a sheet that automaticly calculates this when you enter in the numbers and that is willing to share? Thanks in advance.
                        Try this, I hope it helps, I didn't make it, so don't give me all the credit

                        You could substitute your own info in there to fit your personal needs, and there is an Employee table on page 2.
                        Attached Files

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                        • #13
                          Oh that is very interesting!

                          In that chart, is fuel cost for the lifespan of that piece of equipment?
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                          • #14
                            Oh that is very interesting!

                            In that chart, is fuel cost for the lifespan of that piece of equipment?
                            I'm guessing so, pretty neat little chart though, you'd have to modify it to fit you needs.

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                            • #15
                              For the newer lawn care business owner, what should they be focused on getting out of using such a spread sheet?

                              Should they be focused on finding what their monthly expenses are or is it more important for them to know what their hourly expenses are so they can take that into account when bidding?

                              Or are they equally important?
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