These three profit-and-loss chart of accounts forms are customized for maintenance, lawn care and design/build operations. Your company may provide one or more of these services. You’ll need to adjust your budget accordingly.
Some key differences to note:
- Advertising costs are higher in the lawn care business
- Subcontracting and equipment rental costs may increase in the design/build sector
- Cost of materials for lawn care is higher than for maintenance; but demand for labor is lower for lawn care and net profit margin is significantly higher (on average)
- Most indirect overhead costs are the same across these sectors
- As you develop two budgets for 2010 (best- and worst-case scenarios), keep in mind these more flexible direct costs:
- Labor
- Materials
- Adjusting certain indirect overhead costs is more difficult, including:
- Insurance
- Rent
- Licenses and bonds, etc.
