Am I Calculating This Correctly?

 
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Old 10-27-2017, 09:29 PM   #21
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Re: Am I Calculating This Correctly?


So, hubby works ~60% of the hours and gets 60%. Nothing for you, and nothing for hubby's tools, etc.

At the very least you should be getting minimum wage, but smarter is to have a paid book keeper. Less talking shop when hubby gets home.
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Old 10-27-2017, 09:49 PM   #22
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Re: Am I Calculating This Correctly?


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So, in your scenario, they should get paid a labor rate even through they are the only workers/owners?

When I read about owners draws, usually quartly, or one big draw at the end of the year, that is from profit only? So they still get a weekly labor check, but only a draw or 2 through the year?
Has a lot to do with how you're setup... Sole Proprietor, LLC, S-Corp, etc...

Technically it's ALL gross "profit", and everything is dispersed from the money that comes in, but in reality that's not how Profit is calculated or accounted for...
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Old 10-27-2017, 10:36 PM   #23
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Re: Am I Calculating This Correctly?


You need to get on Amazon RIGHT NOW and get David Gerstels book, "Running A Successful Construction Company".

Yes, it's a few years old, but it covers the basics, and the basics don't change.



And you did a water heater install for $275??




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Old 10-28-2017, 05:30 AM   #24
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Re: Am I Calculating This Correctly?


I'd call several local accountants for a bid on keeping your books, some MIGHT have a "menu" that allows sharing the work with you...

You should be paid for the prep work you do for the real CPA till you learn how to do it correctly with out supervision, I'd still encourage paying for an annual "check up" and refresher on tax code changes and Payroll deductions etc... O-care....Vat and sales taxes

Some 'might' offer to teach you for extra pay......

I'd prepare a running tax return EVERY month, and seek guidance from Pros on any possible weekly, monthly, and quarterly payments you and your partners might owe, Federal, State, County,And city/town and any other regional organisation with possible taxing/regulatory/permitting authority...

Seek a skilled small business lawyer that can show how to preserve your wealth when the Sue Misters come calling.

Create a separate user name on your PC and log in whenever doing Partnership bookkeeping or other company tasks.

You could offer to do the loading & unloading of the vehicles to shorten your spouses work hours.

You are strongly encouraged to track you and your workers hours, for pricing future jobs. accurate bookkeeping of time on tasks is the ONLY way to generate REAL #s for future estimates/bids.

You want track travel time for payroll, and as a percentage of total hours.

If your partner wants to keep his large share he needs to return a fraction of his earnings to reinvest as the partnership equity grows.
hubby and partner need to PLAN their future and PLAN their exit strategies, and YOU do to, death, injury or divorce, of any partner could bankrupt the "survivors"....

Not a lawyer, but your doing the bookkeeping daily precludes your not being at risk if and when the boys are sued or fined or break the law.

You have "married" your husband's partner financially....

I'd work toward a non-partnership(LLC, small S, or incorporation) status as means to reduce personal shared liabilities.

Partner's job one is fixing his credit rating so the partnership could secure a line of credit prior to need(much cheaper interest).

Near term, the partners need to work out a fair pay scheme that rewards over time work(you need to bill more for O.T.) and how much of the Net should be held back for liquidity and building equity, Partnerships in the USA that accumulate a lot of cash suffer under the IRS's eyes as Payroll and Tax dodgers.

Going forward you want the partnership to pay for its mistakes out its checkbook, NOT your's and your husband's personal savings....

Last edited by Fouthgeneration; 10-28-2017 at 05:39 AM.
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Old 10-28-2017, 09:15 AM   #25
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Re: Am I Calculating This Correctly?


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Originally Posted by Seven-Delta-FortyOne View Post
You need to get on Amazon RIGHT NOW and get David Gerstels book, "Running A Successful Construction Company".

Yes, it's a few years old, but it covers the basics, and the basics don't change.



And you did a water heater install for $275??




Delta
I was just using her numbers in the example, but aside from the void in labor, still trying to figure out the $93 figure for materials...

Craigslist maybe?...

Last edited by KAP; 10-28-2017 at 09:17 AM.
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Old 10-28-2017, 09:23 AM   #26
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Re: Am I Calculating This Correctly?


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I was just using her numbers in the example, but aside from the void in labor, still trying to figure out the $93 figure for materials...

Craigslist maybe?...
Water heater install with water heater provided, you're looking at a couple valves, elbows, stubs, pop off, and pipe / insulation. Pretty easy to get to $93, depending on how much is replumbed.
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Old 10-28-2017, 09:31 AM   #27
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Re: Am I Calculating This Correctly?


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Originally Posted by KAP View Post
I was just using her numbers in the example, but aside from the void in labor, still trying to figure out the $93 figure for materials...

Craigslist maybe?...
The customer bought the heater at Home Cheapo or Blowe's. They just hooked it up.
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Old 10-28-2017, 09:33 AM   #28
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Re: Am I Calculating This Correctly?


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Originally Posted by hdavis View Post
Water heater install with water heater provided, you're looking at a couple valves, elbows, stubs, pop off, and pipe / insulation. Pretty easy to get to $93, depending on how much is replumbed.
She said "we changed out a simple water heater", which to me implied they provided the water heater as part of the install hence why I included material handling, etc. in my example...
Quote:
Originally Posted by KAP View Post
Now, based on what you posted, let's look at how that translates and how you're most likely not charging enough to be in business... We'll be generous and assume only 3 hours for picking up the water heater =, bringing it to the house, installing it, and disposal...
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Old 10-28-2017, 10:54 AM   #29
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Re: Am I Calculating This Correctly?


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Originally Posted by Zkmconstruction View Post
They are currently out on a job that pays $3525.00.

His 40% would profit him $1078.50

Carpentry labor is 20.81 per hr. For self employed. He has a total of 25 hours which came out to 520 (rounding) and 5% commission is $177.

That way, it would be $694.

Again, they should be partners. My husband who has contributed everything to start this company, gets the 60%. I do not get paid. He is going on 38 hours (And still there alone) and profiting $1550 (rounding).

So given all the extras contributed, all office work, and staying more hours, is a 60/40 split fair? Should hourly be the way to go with both? Or just one?
I'm not leaving the house for $20.81/hr BTW.
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Old 10-28-2017, 11:24 AM   #30
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Re: Am I Calculating This Correctly?


Quote:
Originally Posted by KAP View Post
She said "we changed out a simple water heater", which to me implied they provided the water heater as part of the install hence why I included material handling, etc. in my example...

Yes, but in another post said customer usually buys materials. My plumber likes to have the water heater bought and in the right general place by the c
HO.
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Old 10-28-2017, 11:25 AM   #31
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Re: Am I Calculating This Correctly?


Quote:
Originally Posted by KAP View Post
She said "we changed out a simple water heater", which to me implied they provided the water heater as part of the install hence why I included material handling, etc. in my example...

Yes, but in another post said customer usually buys materials. My plumber likes to have the water heater bought and in the right general place by the c
HO.
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Old 10-28-2017, 11:30 AM   #32
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Re: Am I Calculating This Correctly?


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I'm not leaving the house for $20.81/hr BTW.
I'm not leaving the house for a $50 job, at that price I'm not even putting much effort into my response to tell you no

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Old 10-28-2017, 11:47 AM   #33
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Re: Am I Calculating This Correctly?


I might, if everything is fast and easy. Stop in on my way by, clean a gutter for 30 mins? I've done that.
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Old 10-28-2017, 12:51 PM   #34
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Re: Am I Calculating This Correctly?


Yes but cleaning a gutter doesn't require many tools.
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Old 10-28-2017, 01:00 PM   #35
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Re: Am I Calculating This Correctly?


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Yes but cleaning a gutter doesn't require many tools.
Exactly.
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Old 10-28-2017, 02:43 PM   #36
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Re: Am I Calculating This Correctly?


Raise your prices, I cant believe someone would bill anything at 50$. Hell last year my furnace didn't turn on while I was out of state and wife called to get someone to come and fix it. The guy was there ten minutes. Changed a 3 amp fuse, clean the coupler and changed the filter(had one sitting there already) and charged 99.00 for the visit. Raise your prices.
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Old 10-28-2017, 04:08 PM   #37
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Re: Am I Calculating This Correctly?


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Raise your prices, I cant believe someone would bill anything at 50$. Hell last year my furnace didn't turn on while I was out of state and wife called to get someone to come and fix it. The guy was there ten minutes. Changed a 3 amp fuse, clean the coupler and changed the filter(had one sitting there already) and charged 99.00 for the visit. Raise your prices.
This
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Old 10-28-2017, 05:22 PM   #38
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Re: Am I Calculating This Correctly?


Quote:
Originally Posted by KAP View Post
Quote:
Originally Posted by Seven-Delta-FortyOne View Post
You need to get on Amazon RIGHT NOW and get David Gerstels book, "Running A Successful Construction Company".

Yes, it's a few years old, but it covers the basics, and the basics don't change.



And you did a water heater install for $275??




Delta
I was just using her numbers in the example, but aside from the void in labor, still trying to figure out the $93 figure for materials...

Craigslist maybe?...
The customer bought the water heater. We just provided other plumbing material.
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Old 10-28-2017, 05:28 PM   #39
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Re: Am I Calculating This Correctly?


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The customer bought the water heater. We just provided other plumbing material.
Now you have warranty issues.

No matter what, the customer will call you regardless of what the problem is. Even if it's a manufacturer's problem, YOU will get the call. Someone will have to go out, determine the cause, tell the customer it's not your responsibility, and they can contact the maker.

Despite all that, half the people will still blame you no matter how good you are and that you did nothing to cause the problem.

Have you added that to your cost of doing business? Probably not. But warranty call-backs, no matter who is at fault, still cost you money.

It sounds more like you're just working for beer-n-pizza money. Do it right. Charge a living wage to provide and install a heater.
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Old 10-28-2017, 05:36 PM   #40
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Re: Am I Calculating This Correctly?


Quote:
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Quote:
Originally Posted by Zkmconstruction View Post
They are currently out on a job that pays $3525.00.

His 40% would profit him $1078.50

Carpentry labor is 20.81 per hr. For self employed. He has a total of 25 hours which came out to 520 (rounding) and 5% commission is $177.

That way, it would be $694.

Again, they should be partners. My husband who has contributed everything to start this company, gets the 60%. I do not get paid. He is going on 38 hours (And still there alone) and profiting $1550 (rounding).

So given all the extras contributed, all office work, and staying more hours, is a 60/40 split fair? Should hourly be the way to go with both? Or just one?
I'm not leaving the house for $20.81/hr BTW.
Quote:
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Quote:
Originally Posted by Leo G View Post
I'm not leaving the house for $20.81/hr BTW.
I'm not leaving the house for a $50 job, at that price I'm not even putting much effort into my response to tell you no

Sent from my XP7700 using Tapatalk
Just wondering, what area are you guys in? Maybe that's the difference in prices... I have done alot of research on big store chains, and small/medium companies, and we wanted to be somewhat cheaper than our competition. I had a friend a few years ago get a waterheater changed out for $325. I didn't think $275 was bad... ??

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