Are you guys tracking stuff in your COGS like squeegee rubbers and steel wool? I am trying to wrap my head around all the stuff I should be tracking in Quickbooks. I setup catagories for this stuff but how are you tracking it in the cost of goods sold?
Any books I should read that will help with accounting? Trying to get all this dialed in. I got the profit first in audible and am going thru all that to see if I should use dude’s methodology.
Do you sell goods? Or a service? I don’t track any COGS. My CPA seems just fine with that.
@Bruce would probably have a better answer for you.
Forgive my ignorance, but what are COGS?
Just services, but figure consumables and stuff falls under cost of goods sold. (cogs)
So like when I buy a jug of surfactant for a house wash, I want to be able to track the total cost to me to make the job happen.
Oh… thanks!
Yep I am trying to wrap my head around the accounting. I can see how it will be beneficial to open a few separate accounts to stay on top of the taxes and profit. Going thru this audible book ‘profit first’ and seeing if I can learn a few things there.
COGS is cost of goods sold.
mostly for businesses that sell physical inventory.
when you buy inventory it goes into an inventory asset account (and the money goes out of your bank.
when you sell one of the inventory items you record the income and the cost of the item goes from inventory asset to COGS.
it could be used for your consumables or your direct labour cost for cleaning (as oppossed to admin staff which would be in operating expenses.
COGS…Cost of Goods Sold…You’re not selling squeegee rubbers and steel wool are you?
That stuff is just supplies/ tools etc.-
No need for COGS category unless you are selling items.
I think it’s a waste of time to try and track it per job.
Just figure all your expenses over a period of time and the $ generated by jobs in that time and you’ll
get what it costs to generate that amount of money.
thanks Alex
Mr T: Cost of service (providing service) is the one for a service business, which is pretty much just field operations costs - cost of providing service: truck and anything related, tools, equip, supplies, uniforms, etc
phone and stuff would be under admin with office, rent etc
I keep a running total each month of cost for working supplies and cost for office supplies. These fall under “expenses” for my tax guy at the end of the year, along with any other expenses he has asked me to keep track of.
Thanks yall. I have bunch of expense catagories I created to track all that. I like seeing where it all goes…I might apply this profit first methodology to my business to help fine tune.
Im the same way…
Im a fanatic when it comes to Excel spreadsheets… (search my previous posts to see others mock me. lol)
Well I think its smart to get stuff dialed in to maximize profit. I’m new to business. I have a tendency to sell myself short but you guys are teaching me to hold firm on prices.
I will no longer negotiate on price unless its like a sweet old lady or somebody going through some hardship.
I have setup separate categories for all my marketing expenses…so I can see how much goes to craigslist, nextdoor, signs, shirts, etc…
lol. Do yourself a favor, and start forecasting…
Good for you. You will dodge 90% of problem/“high maintenance” customers just by doing that.
Here’s how I feel about negotiations. First off there needs to be room to work. I’m not negotiating a 275 dollar window cleaning job. Take it or leave it I could careless.
Secondly I’m not negotiation any job when I’m so swamped that I can fill your spot with one phone call, and I’m not shy about telling someone that.
I’d rather do a job for 940.00 that I priced at 1050.00 than sitting home am doing nothing
Just becisse you got it at a discount this time doesn’t mean next time your getting it at a discount.
You can call it a multiple service discount a first time customer discount , a one time only discount whatever!!
This one below was a hiuse wash , window cleaning in/out so she negotiated with me it was either do it or lose the job. Things are a little slow so she got her way. Whatever !!!
I’ll Go Therr do a bang up job , an she’ll see why I was worth the money I first quoted.
If the measly 5% means something to her then have it
If she said to me I need it to be lower. I would of said that’s the best I can do.
But your right …most times the hemming , and hawing about price potential customers usually end up to be a PIA customer that always want something for nothing.
BTW I hate when they ask how long will it take. They’re counting your money 
Thats when I go all “doom and gloom” let them know what filth they actually are living in. lol 
