Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.
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AMOUNT % OF INCOME ORDINARY INCOME/EXPENSE Income 4000 · CONSTRUCTION INCOME 4100 · Labor 4200 · Materials & Permits 4300 · Equipment/Other 4400 · Subcontractors Total 4000 · CONSTRUCTION INCOME Total Income Cost of Goods Sold 5000 · CONSTRUCTION COSTS 5100 · Production Labor 5110 · Job Labor (Gross Wages) 5120 · Production Payroll Taxes 5140 · Production Benefits 5150 · Production Burden 5161 · Workers' Comp Production 5162 · Liability Insurance 5165 · Education Fees 5171 · Production Cell Phones 5180 · Production Vehicle Costs 5181 · Gas & Oil 5182 · Repairs & Maintenance 5183 · Registration & License 5184 · Insurance—Auto 5185 · Vehicle Mileage Reimbursement 5199 · Truck Payments Total 5180 · Production Vehicle Costs Total 5100 · Production Labor 5200 · Materials & Permits 5300 · Equipment/Other 5400 · Subcontract SAMPLE CHART OF ACCOUNTS An overhead budget does not necessarily have to match the out-of-pocket expenses for a company in any given year but, more important, it should start to mimic what expenses might be in one or two years, Hanbury adds. Planning for the next phase of business long before the company expands equips remodelers with a superior abil- ity to overcome challenges in a rapidly evolving industry. "Most remodelers are artists, and it's about the prod- uct and the beauty of the product, and not running a business," says Les Cunningham, president and CEO of Business Networks, which places noncompeting remod- eling business owners into groups so they can observe and assess each other's companies, work together to generate solutions and learn from their successes. "But after the job's over, there's nothing they can do, so they need to be job costing on a daily basis to track things," he continues. "e biggest lie in remodeling is if you do good, quality work you'll be successful at business; that's absolutely not true. If you do good, quality work but you don't charge enough, you will go bankrupt." AMOUNT % OF INCOME 5500 · Debris Removal (Job-specific) 5600 · Tools & General Supplies (<$500) 5700 · Vendor Discounts 5775 · Vendor Rebates Total 5000 · CONSTRUCTION COSTS Total COGS GROSS PROFIT Expense 6020 · Bank Service Charges 6040 · Contributions 6060 · Dues and Subscriptions 6070 · Licenses and Permits (nonjob) 6075 · Miscellaneous 6080 · Taxes—Property & Business 6090 · Education/Training 6100 · OVERHEAD PAYROLL EXPENSES 6110 · Overhead Wages 6111 · Owner's Salary 6112 · Office Staff Wages 6116 · Vacation/Holiday/Sick Pay Total 6110 · Overhead Wages 6120 · Overhead Payroll Taxes 6140 · Overhead Employee Benefits 6141 · Officer Health Insurance 6142 · Officer Disability Insurance Total 6100 · OVERHEAD PAYROLL EXPENSES 6170 · COMMUNICATIONS 6171 ·Cell Phones 6173 · Telephone 6174 · Cable & Internet Total 6170 · COMMUNICATIONS OVERHEAD Once you understand the numbers, then you can understand what sort of changes to make and how it's going to affect the bottom line. – Victoria Downing, Remodelers Advantage SPECIAL REPORT: Business Benchmarking 36 June 2017 QR QualifiedRemodeler.com