TLDR: Understanding and calculating labor costs involves considering various factors such as wages, burdened up rates, payroll taxes, employee benefits, insurance options, and additional costs, and it can be customized based on the type of employee and the needs of the shop. 00:00 🔨 Understanding labor costs involves calculating the true cost of labor, including wages and burdened up rates, and can be calculated as a pool rate or per person. 01:55 💰 Calculate labor rate by considering payroll taxes, employee benefits, insurance options, and additional costs based on the type of employee. 03:03 🔨 Your labor rate is customizable, including tools, consumables, safety, and a wildcard for additional costs, but start small and adjust as needed. 04:34 🔨 Labor rate can be calculated in either labor dollars or labor hours, and it's up to you to choose which one works best for your shop, with the flexibility to modify the system to fit your needs. 05:54 🔧 Labor rate can be calculated using either labor hours or labor dollars as the denominator, and it's okay if different contractors have slightly different methods. 06:59 🔨 Calculate labor rate by starting with a simple example and keeping it simple. 07:17 💰 Calculate labor rate by adding wages, taxes, vacation, health insurance, and dividing by hours to get the true cost of the employee. 08:29 🔨 Use templates from the website for job costing and labor rate calculation, with over 100 videos and templates available for assistance.
Why you don't have a Million subs is a travesty. I have been a co-owner of a commercial construction company for 30+ years - but - I have done almost zero accounting. Now I am thrown into the deep end of the pool and trying to do butterfly while skipping freestyle (swim family :) I needed someone to help me with easy to understand terminology before I get into the complicated rollercoaster of Union commercial construction accounting. Your explanation of construction accounting is exactly what I needed. Thank you so much for sharing your knowledge.
You are so kind. Thank you for the comment. Yes, it is tough stuff to figure it all out! There are lots of moving parts on the accounting side of construction companies. I’m glad we can be of help!
Do you have a video of Journal Entries for Over/Under Billings and how to connect them with the Balance Sheet and P&L statements? I have seen Over Billings accounts, Under Billings Accounts and also Under/Over Billings. I am an Accountant, but Construction Accounting is new to me.
You might check out our All Access training or our WIP training. Both should help point you in the right direction. All Access comes with our WIP course. Here's the link for that: www.atlascfoallaccess.com/all-access And here's the link for our WIP course: www.atlascfoallaccess.com/WIP
TLDR: Understanding and calculating labor costs involves considering various factors such as wages, burdened up rates, payroll taxes, employee benefits, insurance options, and additional costs, and it can be customized based on the type of employee and the needs of the shop.
00:00 🔨 Understanding labor costs involves calculating the true cost of labor, including wages and burdened up rates, and can be calculated as a pool rate or per person.
01:55 💰 Calculate labor rate by considering payroll taxes, employee benefits, insurance options, and additional costs based on the type of employee.
03:03 🔨 Your labor rate is customizable, including tools, consumables, safety, and a wildcard for additional costs, but start small and adjust as needed.
04:34 🔨 Labor rate can be calculated in either labor dollars or labor hours, and it's up to you to choose which one works best for your shop, with the flexibility to modify the system to fit your needs.
05:54 🔧 Labor rate can be calculated using either labor hours or labor dollars as the denominator, and it's okay if different contractors have slightly different methods.
06:59 🔨 Calculate labor rate by starting with a simple example and keeping it simple.
07:17 💰 Calculate labor rate by adding wages, taxes, vacation, health insurance, and dividing by hours to get the true cost of the employee.
08:29 🔨 Use templates from the website for job costing and labor rate calculation, with over 100 videos and templates available for assistance.
Why you don't have a Million subs is a travesty. I have been a co-owner of a commercial construction company for 30+ years - but - I have done almost zero accounting. Now I am thrown into the deep end of the pool and trying to do butterfly while skipping freestyle (swim family :) I needed someone to help me with easy to understand terminology before I get into the complicated rollercoaster of Union commercial construction accounting. Your explanation of construction accounting is exactly what I needed. Thank you so much for sharing your knowledge.
You are so kind. Thank you for the comment.
Yes, it is tough stuff to figure it all out! There are lots of moving parts on the accounting side of construction companies. I’m glad we can be of help!
Do you have a video of Journal Entries for Over/Under Billings and how to connect them with the Balance Sheet and P&L statements? I have seen Over Billings accounts, Under Billings Accounts and also Under/Over Billings. I am an Accountant, but Construction Accounting is new to me.
You might check out our All Access training or our WIP training. Both should help point you in the right direction.
All Access comes with our WIP course. Here's the link for that: www.atlascfoallaccess.com/all-access
And here's the link for our WIP course: www.atlascfoallaccess.com/WIP
@@atlascfo8064 thank you!
Video starts at 1:40