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Roof repair invoice sample for Operations

do you know your labor cost do you know your profit margin do you know your overhead if the answer is no you better watch this video I'm gonna show you step-by-step how you can easily calculate these numbers anyone can do it by the end of the video I will post a link down below where you can download the template and just replace with your numbers and be able to calculate it if you have to mention that this won't replace your accountant this won't replace your CPA it won't even replace QuickBooks but if you just start at your business or you've been in business for years and you'd never seen your numbers you have no idea what your profit margin is this is it this is a simple way that can help you calculate these numbers and have an idea where you stand and you probably heard this before but if you want to be in business you have to know your numbers let me repeat that again you have to know your numbers so this will be the end product you're gonna be able to tell me well my profit margin is 30% my profit margin is 60% my labor cost is 20% my overhead is 25% whatever your numbers are but you have to know where you stand if you asking yourself well I'm not making any money where it's all my money I make all these services I charge these clients and I don't know where the money goes this is your answer so this is not only about your labor costs overhead profit margin you're gonna be able to tell by the end of this video what's the percentage of your expenses that you spend on marketing on rent on foot on business insurance on payroll these are important things that you should know and again this will not replace your accountant or CPA or even QuickBooks but if you never done your numbers and you have no idea where you stand this is a basic way to at least have an idea and help you achieve your goals this is where we start and we're gonna do this step by step this is the empty template I'm gonna show you how we can fill it out and reach the end goal which shows you your percentages now on your left you have all your expenses and you can easily fill this out if you have a business okay I'll check in business account how you recommend if you run a business to have your separate bank account and you can just download all your expenses and just pace the results over here usually banks will let you download an excel sheet then you can just copy and paste now after you paste all your expenses we're gonna divide that into different categories and we're gonna calculate the total expenses we're gonna calculate the income and the grand total so let's move to step number two so this is an example of all my expenses for a month and this is our these are just random numbers but you can see and probably when you download all your expenses they're gonna have some weird names I do recommend to just rename them quickly for example office Depot I name it supplies office depot if I were to buy something from Lowe's or Home Depot I would say supplies Lowe's so I know where it belongs payroll gas marketing Facebook marketing thumbtack whatever you use just make sure you rename in so you can easily tell what goes where now you can see that we have the total expenses and that's automatically calculated and you can see it goes from cell d8 to D 28 so that means that it goes right up to the 231 so if you need to add some more just make sure that you replace that be 28 for example of D 30 31 and that works so it will easily calculate the number that you need now next week to merge all the different categories for example payroll marketing supplies so we know how much we spend for each category this is important to know because you want to know what percentage of your expenses total expenses go to gas you know want to know how much of the total percentage of your expenses goes to rent or vehicle payment whatever it is which is add the income again you can download your income from your checking account from your bank online it's just one number we're not gonna tell where he came from all the different services it's just one number that you need to calculate and just write it on their income total and the grand total will be automatically calculated for you I mean it's something simple as as you can see right here on top it says sell H 25 - sell h21 and it gives you the grand total now get ready this is where it gets a little bit interesting so now we're gonna see the pie chart where you can see all the percentages of your expenses only drumroll I don't really have an effect for drumroll so just imagine that part so here it is so now you can see 66% of your expenses go to payroll that means payroll payroll taxes payroll services all the heads of the with payroll let's see food where is it right here and you can click and it will actually tell you so vehicle maintenance 9.4% vehicle payment 7.3 this moment supplies I mean that's probably again these are random numbers supplies are probably gonna be much much more you know you can easily tell where your money is going now in the next screen I'm gonna show you your labor costs your profit and your offer head and I'm gonna show you how it gets calculated you I'm gonna shirt this template with you so you don't you don't need to do anything you know as far as you just need to fill out your numbers and you will do it for you but I also want to explain how I cut those numbers so here it is as you can see our labor cost is 46 point 87 percent our overhead is 24 point 10 percent and our profit margin is 29 point zero two percent so first let me give you a quick overview on labor costs overhead and profit profit easy to calculate all we do is just we prep the income we subtract the total expenses and that will give me the profit for overhead overhead is basically whatever is not labor whatever is not payroll will be your overhead your expenses labor costs it's whatever payroll is but now let me make a quick technicality and let me tell you something about this there's a difference between direct and indirect labor indirect labor will their overhead direct labor will go under labor cost what's the difference let me give you an example I have a cleaning business my office manager will the indirect labor my team members that actually go and clean houses that will be direct labor mixes again this will not replace your accountant just use this to have a basic idea there might be technicalities that I'm not aware of although I want to make a disclaimer I had CPA to actually take a look at this file making sure everything's good now I'll give you her details just in case you need to reach out any help you can reach out to her she does remote work and she's looking for new clients so they wait to calculate an overhead again whatever is not payroll we're gonna throw in the overhead whatever is barrel we're gonna put in the labor cost just have in mind that difference between direct and indirect labor and I'm also gonna post a link that explains the difference on the video description so we've reached the end Congrats if you're still watching so basically all I did on this last one and this is the file that you will get all the other ones were just too I could explain step by step how we reach this so basically on this file all you need to do is delete all the expenses you might have different categories and chose to change your income everything else will be automatically calculated I just added a little graphic for the labor costs overhead and profit so you can easily go month by month and tell how much you've been doing in this month and how much would be doing that month however your labor cost is if it goes up and down why did it go up on you know May why do you go down on July at the end of day as a business owner you need to know your numbers it will make a difference trying to reach that goal I hope you enjoy the video if you like the content just subscribe to my channel you would get you will get an automatic notification every time I upload a new video and if the information does help you make sure you make a comment you like the video it will help other people find the video and help them