Computing COG

Can QB 2007 compute cost of goods? Actually in my case it would be cost of services as I am a janitorial contractor. I need to know what those costs are so I can incorporate them into new bids. If you don't know then who would?

ALSO...exactly what are the actual components of the COG (COS) computations?...i.e....what does the COG take into consideration?

QB can calculate whatever you want it to as long as you set it up correctly and your data entry is accurate. IOW as long as you specify your cost of sales when entering transactions then QB will always provide you with an accurate total and transaction history.

Whatever the actual and direct costs are associated with your ability to provide your service, not including overhead (office supplies, utiltiies, rent, postage, auto expenses, advertising, etc).

There are alot of service contractors that don't have direct cost associated with their ability to sell their service. Some have only contract labor where they pay another person to provide all or a portion of the service they're selling.

Remember to include your necessary indirect/overhead expenses and divde them into portions that you can associate with doing a job. This, coupled with your direct cost of sales, will tell you what you need to charge just to cover costs.

-- Tara

If you're selling only services, you're not selling "goods." If you don't sell goods, you don't have a "Cost of goods sold."

Incidental items used in the performance of your services (cleaning supplies, electrical tape, condoms, whatever) are, unless invoiced separately, not subject to COGS.