expense tracking

[JBenson]

Could somebody please help me with quickbooks. I am trying to figure out how to track expenses using business account. But if i put gas in the truck, that is not an expense that needs to be tracked but it will come out of the bank account. I know this makes no sense. Any body can give me a call if you dont mind.

cell 715-308-4941

[Paul Kassander]

I'll call today and see if I can help.

[Mike Williamson]

Originally Posted by JBenson

Could somebody please help me with quickbooks. I am trying to figure out how to track expenses using business account. But if i put gas in the truck, that is not an expense that needs to be tracked but it will come out of the bank account. I know this makes no sense. Any body can give me a call if you dont mind.

cell 715-308-4941

If it is coming out of the business account, why wouldn't you track it as a business expense? Otherwise, your books aren't going to balance!!

[RCBill]

J,

If you mean the gas is an expense that cannot be attributed to a particular job, the expense is an indirect expense. These expenses can be identified as indirect in QB. To calculate their impact on Revenue create an indirect expense pool, divide that pool by direct labor and you will know how much of each dollar per labor hour pays for everything else.

Many times identifying indirect expense per labor hour turns a marginal company around. I know this not from my experience, but from hearing it from professional accountants and experienced contractors. This is what Brian, in the 'how much does it cost to be in business', thread is bringing to the table.

[RyanH]

Consider it overhead. If your truck is part of your business, fuel is a part of operating a tool in your business. Next year, you look at this year's overhead and spread it over the number of jobs you plan on doing and adjust your price accordingly. Insurance, vehicle payments (and interest on the loans), office equipment, advertising, etlc. also all go into an overhead account.

[PLD]

Originally Posted by JBenson

Could somebody please help me with quickbooks. I am trying to figure out how to track expenses using business account. But if i put gas in the truck, that is not an expense that needs to be tracked but it will come out of the bank account. I know this makes no sense. Any body can give me a call if you dont mind.

cell 715-308-4941

This came up in a different thread, so I thought I'd pass it along here:

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