The Importance of
Overhead & Profit
by Sal Alfano
If you want to keep your head above
water in contracting, you need to
understand the concepts of overhead
and profit. Tracking these figures will
enable you to make intelligent decisions
about bidding, business expansion,
and your company's financial
health.
The year's end is a good time to sit
back and reflect on these matters—
Common Overhead Costs
Insurance
Personal liability
Property liability
Workers' compensation
Motor vehicle
Land and buildings
Tools and equipment
Payroll Taxes and Benefits
FICA
FUTA and state unemployment tax
Employee benefits
compensation is a percentage of
payroll: the more employees, the
higher the payroll, the bigger the
premium. Your insurance agent
should be able to give you a pretty
good idea of what percentages apply
in each case.
Other