price for profit
Bucket Two: Labor As mentioned above, this is the total of your hourly employees per month for each year. How much money are you spending to get orders completed? By tracking this constantly you will see patterns emerge. Not to mention you will be able to better anticipate problems.
Pull your records and total these per month, for each year; adding it all together into one sum:
• Total Hourly Pay • Total Hourly Overtime Pay • Optional - Salaried employees - (see the Overhead Bucket description above) Bucket Three: Consumables Your consumables are all the items you buy to make the magic happen in your shop. This is everything, regardless of where you buy it. Do you use a preferred vendor for ink, emulsion, thread or chemicals? Include that here. Maybe you bought some paper or markers at an office supply store. Include that too. What about batteries, light bulbs or hydraulic fluid? Yep, you guess it. It all goes into this total. A frequent question that comes up is when or how to apply purchases. For example, if you bought something at the end of the month, but the order wasn’t produced until the following month, which month should the expenditure be recorded? The answer is simple, whatever month the purchase was made is the month that you use.. Total all purchases for each month, per year.
It will all work out in the end.
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