![]() With net profit you can make capital investments in the company (new office, new equipment or machinery) and take distributions from the business in addition to your salary. ![]() While this sometimes varies, it includes things like rent for your office, office-based support staff, some types of insurance, tools, equipment, bookkeeping, accounting, legal costs, owner’s salaries, outstanding debt payments and whatever else it might take to keep the lights on if you don’t have active jobs.Net profit is the remaining amount after job costs and overhead are subtracted from the price. This includes labor, materials, leased equipment costs, projected capital costs (if borrowing money for the job), bonding premiums, permits, gas, and other materials and supplies.Overhead is all the bills and expenses not included in the above job costs that you will need to pay in order to operate your business. ![]()
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