Understanding and Applying Job Costing

pillar now take a close look do you see how your overhead is bigger than your profit that's because your overhead will eat your profit if your overhead is not accounted for and we're going to talk about the simplest easiest way to account for overhead before we're done with this video here's your four pillars remember them every time you go to bed it's worth repeating labor materials overhead profit that's your basic components of every construction site from there we take it even further and I'm going to do that for you in just a minute [Music] so how do you do your very first job with no experience you're going to guess yep I said it right you're going to guess you're going to do your best guess at what it's going to take to do that job and in a moment I'm going to break down this project exactly how we do that and yeah you're going to be nervous as a long tail cat in a room full of rocking chairs on that first project but after you do you after you take your best guess and you do your first job you're never going to guess again because you're going to job cost every project from that moment forward and yes I'm going to cover job costing as well because these are your keys to success don't use me as an example I use g m Outdoor Services as an example they're 20 some year old kids and now they are running a 5 to 10 million dollar company because they have gone through and job costed every single project they've ever done and we're going to tell you how to do the exact same thing they're doing there's no mystery behind this thing it's just buckling down and doing the work that it requires to be successful but now we got to get back to these four pillars because before you can job cost before you can break anything down you've got to understand these four pillars and this one is the one that we're going to be tackling here in just a minute [Music] thank you [Music] the easiest way to calculate overhead I found is on a day-to-day basis meaning I know exactly how much every single working day that I spend my company cost me so if you've been in business for a year congratulations you have all the information you need to do overhead if you've been in business one month congratulations you still have the information you need to calculate your overhead what you're going to Simply do with your overhead is you're going to remove the other things out of the component you're going to take your labor out of your statements you're going to take your materials out of…