TRANSCRIPTION
--- CLIP 2: Equipment ---
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[00:09:27]
then we can move on to equipment we have both own and paid off and finance equipment so let's go ahead and click add line for own and paid off this would be anything that you're not making monthly payments on so you have a dump trailer this current value is really gonna be like your replacement cost when you need to purchase a new dump trailer all right so let's say your
[00:10:15]
current dump trailer is gonna last you five years or maybe it's only three or four five six seven however many years you think your current dump trailer is gonna last you and you gotta think after these five years or four years or whatever you put here how much you think it's gonna cost you to buy a new replacement dump trailer you're gonna put that right here let's say maybe 13,000 all right then in the estimated sell price you're gonna put how much you think you can sell your current dump trailer for maybe 3,000 and that would be after five more years of use all right so you could be kind of conservative with this maybe it's only 2,000 whatever all right and how this works is it's going to take the difference between these two numbers and it's going to
[00:11:00]
spread it out over these five years and that's going to be your annual depreciation cost this number right here is essentially how much money you need to be setting aside each year to make sure that you have the money to purchase a new dump trailer in five years from now all right so you're gonna want to repeat that same process for anything that you are have paid owned or paid off that you're not making payments on trucks trailers mowers whatever it is you enter it here machines skid steers all that type of stuff we even recommend adding compactors and that type of stuff really anything over $3,000 would get added here the smaller items under $3,000 handheld tools and whatnot that can go directly into the overhead tab here all right the this these costs
[00:11:49]
right here will be counted as overhead by default as you can see but you can switch them to be billable if you'd like we'd recommend leaving it as overhead most of our users do that and that makes sure that you're recovering that expense without having to specifically add it into the estimate all right so go ahead and do that for all everything that's owner paid off then you can go to the finance tab here click add line and you can enter in any finance equipment so let's say you have a truck that's finance put in the monthly payment here let's say 800 bucks a month and you have two options the most common option would be skipping over these fields and going straight over here on the right side and switching this to say loan payments and what this does is it says the full 800
[00:12:35]
bucks a month or ninety six hundred dollars a year is going to be counted as an overhead expense and what that means is that it's being baked into your estimates and your jobs and being recovered through your overhead the full loan payment all right if you instead wanted to do it off of your depreciation you can but then you'd have to enter in these different numbers here to calculate that out most of our users will do it off of the loan payments if you need more additional info you can get a recommendation from your accountant if you're not sure we'd recommend going with the higher number which is usually the loan payments all right from there you could enter any lease if you need and any rental equipment so here on the rentals we
[00:13:20]
would just put like rentals and you would just put in how much per month you spend on average thousand bucks a month two thousand five thousand whatever or you could look at how much you spent last year in rentals and put that in right here maybe $20,000 that will automatically divided by 12 to get your monthly all right so that's how that works what as long as this number is correct that's what matters if you don't work all 12 months of the year it's still going to divide it by 12 don't worry about it just make sure that this total annual cost is correct all right from there you can see that all of this is being recovered as overhead and but the rental equipment is going to be billable straight to the job so you can see the 20,000 for the rentals is here
[00:14:06]
but this other 11,000 that's being recovered as overhead is not showing up under your equipment and that's because it's going to get fed in here under overhead all right so you can see here we have unbillable field labor we have equipment recovered as overhead and these numbers are getting pushed into this overhead total here based on your specific company and numbers that you have entered all right