Is Labor Part of Cost of Goods Sold?

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Service-Based Business Owners Must Include Labor Hours in COGS

 

 

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Is Labor Part of Cost of Goods Sold

Episode 279 – The Local Small Business Coach Podcast 

Why You Should Include Labor Hours in Your Cost of Goods Sold

 

Service-Based Business Owners Must Include Labor Hours in their Cost of Goods Sold in order to get a true cost basis and calculate a true gross margin on their services. Especially when labor is part of the actual service.

Most importantly, solo business owners need to include labor hours too! They need to assign a typical hourly wage as if they have hired someone other than themselves to do the job. This is the only way to get a true COGS for services.

 

Listen below.

Tammy

 

 

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Don’t forget to shoot me an email on any topic or question you would love for me to cover in an upcoming episode of the show. Just send your ideas to tammy@localsmallbusinesscoach.com.

 


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