Reviewing the Profit/Loss tab of your budget
Please see some information below to help you review the Profit/Loss tab of your budget. For a complete tutorial, we strongly recommend you watch our onboarding videos - specifically Step #2 under LMN's Budgeting & Estimating 5 Step Onboarding.
The Profit & Loss area of your budget will display the following:
- Your Sales Revenue, broken down by line item, with a Total Income line.
- Your Costs of Goods Sold, broken down by Field Labor Wages/Burden, Field Equipment Costs, Material Costs and Subcontracting Costs.
- This area will also indicate a Total for your Job Expenses.
- Your Total COGS will also be indicated via percentage of Total Income.
- Your Overhead, broken down by Overhead Expenses, Overhead Equipment and Overhead Payroll.
- This area will also indicate a Total for your Overhead Expenses, indicated by both amount and percentage.
- The Profit section of the Profit & Loss tab will indicate both Gross Profit and Net Income.
- Your Gross Profit is calculated by taking your Sales Revenue and removing your Total COGS (Job Expenses).
- The Gross Profit will be indicated by both amount and percentage.
- Your Net Income (Profit) is calculated by taking your Sales Revenue and removing your Total COGS (Job Expenses) and your Total Overhead Expenses.
- The Net Income (Profit) percentage will be built into each estimate you bid.
- If you are unhappy with the percentage indicated, click HERE.