VIDEO: Understanding Cost of Goods Sold for contractors
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Watch this video for a better understanding of the CORRECT income statement for a renovation contractor
In this video below, Canadian Contractor publisher Rob Koci talks to our resident contractor coach, Mike Draper, about the Cost Of Goods Sold (COGS) part of an income statement.
If you think you know all this stuff backwards, here are two questions to test you. If you don’t get them right, WATCH THE VIDEO!
(1) If you have a truck that goes to all your job sites, should the costs for that truck go as an Overhead or as a COGS?
(2) Where should you show your OWN compensation, as owner of your firm, on your income statement?
OK, so here is the video…