There’s a lot of talk about allowing overheads as a percentage of job cost instead of assuming that your margin will cover that cost.
But let face it a lot of trade contractors dont do this as they dont know what to allow.

Here’s how we do it.
Find out you overhead cost for the year from your accountant or from your accounting software.
Its probably shown on your profit and loss statement, so you can work it out yourself.

Divide the amount of your overheads by your monthly sales = percentage of overheads
That’s OK if your adding overheads to your final sales amount.
If your adding your overheads to your job cost then you also need to multiply by your markup.

I know this sounds like a lot, but if you want to make the margins that you need on your business then you need to make sure that your adding the correct amount.