The setup is easy but might take a bit of digging into your file cabinets. The reward is a game-changer, as you could finally find the jobs that are losing money.
Let's make sure we are speaking the same language. These are the terms we will use:
Labor Overhead % - multiplier on payrates for other expected costs directly associated with labor (ex. taxes, workers comp, benefits). Tax burden.
Loaded Payrate – a person’s hourly rate inclusive of labor overhead costs. Payrate + (payrate * Labor Overhead%). The system calculates that for you.
Revenue - the total amount of money your customer will you pay for the job. Job contracted amount.
Revenue Overhead % - expected multiplier on other costs besides labor (ex. franchise fees, supplies).
When editing an existing job for the budget information: Select the Job > click on the Budget tab > click the 'Edit the Budget' link.
Remember - The Budget numbers are for the 'contract timeframe' of that job. Ongoing jobs by default are set for a year (with an auto-renew option.) So set the revenue and hours for that timeframe.
Once in the Edit Budget screen you can change Total Revenue, Total Job Hours, Average Base pay rate, Labor Overhead %, and Revenue Overhead %. Even if you take a guess, remember, you can change it.
This is the amazing part. There is no spreadsheet to upkeep. The budget is calculated with expected Gross Profit.
And it is re-calculated with each new time card. Can I repeat this very good news - no spreadsheets to upkeep.
Check out our Help Center for answers to other common questions😎.