Originally Posted by clipfert
Neither. Can you tell us what your profit is? Your profit margin is added to the end for one specific reason. Keyword "MARGIN"
If your not making a profit why do the job?? You are just employing others and working for a wage.
I can tell you my operational profit (money made on this job, including material purchase, labor, gas, rentals, etc) but it won't include overhead (insurance, phone bill, etc etc) because that all gets very complicated applying overall overhead to specific jobs.
Materials+labor+miscellaneous expenses (gas, rentals, etc) is 3,068. Operational profit margin on this job is in the ballpark of 40-45%.
I'm new to landscaping, but not new to financial statements. I graduated Magna Cum Laude in Finance and my background is understanding finance. I've never seen a financial statement that adds in a profit margin AFTER. Profit, by definition is revenue-expenses=profit. Therefore profit is what you have left over AFTER subtracting expenses from revenue.
I can understand if you've tailored a custom formula that works for you, that's cool. All I'm saying is that I haven't seen one done that way, and was hoping you could show me what you mean.
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