Attached is my chart of accounts so you can see how I group my expenses. Grouping this way allows me to quickly and accurately get the management numbers I need. These are also the same numbers that many struggle for. Don't worry about the accountant. He'll still have everything he needs. The advantage is this grouping provides numbers that labor intensive contractors need. They also make over head recovery easy to determine. Just divide your payroll hours into equipment or overhead costs to determine YOUR cost per hour. Subtract gross payroll from your TOTAL labor costs, then divide the answer by your gross payroll to determine your labor burden. It's easy, accurate and the best part is the numbers are yours. If business is growing and your adding manpower and equipment the add on % for labor burden and hourly costs for equipment keep you financially secure and the profit machine cranking. Got to add some one in the office. No problem, your always adding dollars per hour for overhead recovery. The more hours you bill the more equipment dollars and overehad dollars you bring in so evcerything pretty much keeps pace with everything else. Although this is a simplistic rundown on how to do it the plan is valid.