And more specifically, for those who use budgets and have more than one division in their company; We do lawn maintenance, pest control, irrigation, and landscape design/build. I currently have only two "divisions" - Maintenance and Landscaping. For data and reports sake, I plan to eventually break these off into four divisions - Maintenance, Landscaping, Irrigation, and pest control. My question for now is this - How do those of you who budget for multi-division companies budget separately for these divisions? Even more specifically, payroll. All of our maintenance sales are on 12 month contracts, so I like to have an annual averaged budget for this. For landscape design/build and irrigation however, these vary big time from year to year on the dollar amount and time of year incurred. I want to basically have two overhead per hour costs - One that I use to bid on maintenance services which includes my annually averaged budget for payroll expenses, and one without the payroll expenses added in which will be used to calculate the required dollars per hour to recover overhead for landscape installs. Actual labor costs will be charged to landscape install jobs rather than budgeted for in a year, since one year we might to $200K in landscape installs, and one year we may do 50k. It is not practical to budget for these figures in an annual budget. Most of my overhead costs are the same for both divisions because I rent most of my equipment. (Excluding mowers, etc...) Should I expense ALL of my payroll (maintenance payroll and landscape payroll) to my payroll expense account? Or should I expense the maintenance to the payroll expense and the landscaping to the cost of goods sold? It is important for me to have easily interpreted data for reports so that I can see where my expenses are and such - as I'm sure most of you understand. I do currently have two separate accounts for materials per division. Materials used in the landscaping division are debited to my "Cost of goods sold" account. Materials used in maintenance (fertilizer, chemicals, seed, etc..) are debited to my "supplies" account. I guess I don't really have a distinct question. I'm just looking for thoughts as to how to do this most accurately and properly.