The next five worksheets — tabs 2a through 2e — will require the most elbow grease on your part. You use them to enter a historical record of the mix of projects you completed last year. You’ll need to know how many projects you completed in each category, the total revenue from each, and associated direct and indirect costs. The worksheet calculates the average selling price, gross profit, and contribution margins for each category.
Most of you will mainly use the Remodeling (large job) and Handyman/Repair (small job) worksheets to enter income. It doesn’t matter where you draw the line between a big job and a small job — just be consistent. Use the worksheets that represent the type of jobs you do and leave the others blank.
Setup tip. I included an account-number column on each of the income worksheets. Filling that in and saving the template will make it much easier the next time you need to extract that information from your accounting system.
The next two worksheets — tabs 3a and 3b — are for calculating your fixed overhead. Complete worksheet 3a, Overhead-Historical, to document what you actually spent during the previous period. Worksheet 3b, Overhead Budget, is a carbon copy that you can manipulate to reflect next year’s budget. If you expect a category to go up or down in the coming year, adjust it in the green cells (Figure 2).
Displaying the Historical Overhead and Overhead Budget worksheets side by side (shown here using the synchronous scrolling feature in Excel) makes it easy to tweak last year's numbers to create a budget for next year.