INCREASE PROFITS WITH LABOR BURDEN DATA
AND EMPLOYEE BILLING RATE INFORMATION |
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“If you have employees, you simply CANNOT afford to NOT know their true cost per production hour!“
The Problem: The process of determining which costs to include for which employees, then gathering, organizing and calculating “fully-loaded” employee cost-per-hour data prevents many small to mid-market companies from ever computing this critical information!
Lacking this information, owners “look to the competition” or just “make an educated guess” about their employee costs, and what they should earn per hour for their employees’ work. As a result, they:
- Incur tens (or hundreds) of thousands of dollars in hidden costs that can strangle the company, and
- Fail to charge adequately for their employee’s time, thereby losing hundreds of thousands of dollars (or more) in revenue!
These companies struggle along, losing the profits they deserve, and can’t really see exactly what the problem is, or how to correct it. If this sounds uncomfortably familiar, you’re probably in need of “better numbers” to help with “better decisions”. |
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An employee’s true cost per production hour (fully-burdened cost) is not just direct compensation and payroll taxes, it includes all the “hidden” costs such as: equipment and facilities usage, insurance and other benefits, and paid time off. Knowing the current, fully-burdened cost per hour for each of your employees and by department should be a key component in all of your job-costing measurements and cost estimates. (This is what the big companies do, right?).
By getting a handle on these numbers, you too can make profitable job-pricing and product-pricing decisions!
Never fear… You can do it! You just need a little help… |
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Info Plus(+) Accounting, Inc. has also developed the Qlean$tart Labor Burden Calculator, an Excel-based spreadsheet that leads you through the information gathering process and automatically calculates employee costs for up to 40 employees and 6 departments (or up to 100 employees and 10 departments). And if you’re a QuickBooks user, you’ll love the Special Bonus Report that shows you how to get QuickBooks to automatically post fully-burdened labor costs to individual jobs for more accurate job cost reports!
 Click the VIDEO button for an online demo of the
Qlean$tart Labor Burden Calculator.
For a full description or to purchase the Qlean$tart Labor Burden Calculator click here. |
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| If you’d like some additional, behind-the-scenes mentoring, Diane can also help you customize an employee-cost and pricing system designed to fit your company’s specific needs. Please contact us (toll free) at 866-244-2228 (M-Fri, 9-5:00 EST) or e-mail us at Help@InfoPlusAcct.com to arrange an appointment. |
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| Our president, Diane Gilson has helped many of our clients master this aspect of their management accounting system. She has now distilled this experience, and is sharing her knowledge, through a series of articles and reports (see links below) designed to assist you in calculating your true employee costs and labor burden rates. |
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Labor Burden & Profits - Part I:
What Do Your Employees Really Cost?
Whether you’re a contractor, supplier, remodeler, builder, service provider, consultant, or other business professional, if you have employees, you owe it to yourself to understand exactly what each person on your payroll really costs, and how he or she can make an appropriate contribution to your bottom line.
Click Here to View the Special PDF Report |
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Labor Burden & Profits - Part II:
Exactly What Should Your Employees Contribute to the Bottom Line?
What do your employees really cost per production hour and how much should you charge for employee labor? Are each of your employees making a positive difference in your bottom line? Whether you have 1, 40, or 80 employees, it pays to know your labor burden numbers inside and out, so that you can use that data to increase your bottom line. Here are some ideas about how to use that critical information to make a positive impact in your take-home pay!
Click Here to View the Special PDF Report |
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Labor Burden & Profits - Part III:
To Overtime or Not to Overtime? That is the Calculation...
Is it ever a smart move to utilize overtime, and if so, when? And for which workers? Here are more creative ways to use fully-burdened labor cost information to make a positive impact in your take-home pay!
Click Here to View the Special PDF Report |
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Labor Burden & Profits - Part IV:
Using Burdened Costs & Variance Reports to Improve Your Operations
Using burdened cost information in tandem with internal management reports can help you bring job costs under immediate control and will, additionally, provide you with ongoing insights into ways to improve your company’s overall performance and productivity!
Click Here to View the Special PDF Report |
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Labor Burden & Profits - Part V:
Where Does Our Time Go?
Assigning Direct, Indirect, Administrative, and Owners’ Time to Jobs (Introduction)
Which kinds of employees should be assigned to job costs? And which to company overhead? Opinions vary, but here are some guidelines and techniques to help you sort out the numbers and apply them to job costs so that you can get a better handle on your financial results.
Click Here to View the Special PDF Report |
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Labor Burden & Profits - Part VI:
Where Does Our Time Go?
Assigning Direct, Indirect, Administrative, and Owners’ Time to Jobs (Conclusion)
Assigning Sales time and costs, Owner’s time spent on job-production activities, and time for employees who are asked to perform a variety of direct, indirect, or admin activities (depending upon your needs) present special job-costing and measurement challenges. Here are some ideas and insights to help you logically assign these unique “time” circumstances to job costs – so that you can see job cost reports that truly reflect time spent on jobs!
Click Here to View the Special PDF Report |
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From Quick Tips + Business Bytes - February 2006
How Heavy Is Your Labor Burden?
Basic facts about labor burden calculations, employee profitability, and various ways the information can be used to increase your bottom line.
Click Here to View the Special PDF Report |
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From Remodeling Magazine - July 2006
Beast of Burden
How the Qlean$tart Labor Burden Calculator can be used by owners and bookkeepers in the remodeling industry to gain a better understanding of their employee costs and the impact of those numbers on their bottom line.
Click Here to View the Article |
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From Ann Arbor Business Review - August 2006
CPA Invents Labor Burden Software
Why, and how, the Qlean$tart Labor Burden Calculator was developed.
Click Here to View the Article |
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