Tree care budget

P&L Chart of Accounts – Tree Service

RANGE AVERAGE
COST OF GOODS SOLD (Direct Costs)
Materials (with tax) 0-2%
Gas & oil 3-5%
Labor (field) 30 +/- 5%
Labor burden (field) 35-45% (as a percent of labor)
8-12% 10% (as a percent of sales)
Subcontractors 0-5%
Equipment * 12-15%
Equipment rentals 1-2%
Miscellaneous direct job costs 0-2%

TOTAL DIRECT COSTS 65-75% of sales, +/- 5.0%

GROSS PROFIT MARGIN 25-35%

GENERAL and ADMINISTRATIVE (G&A)
OVERHEAD (Indirect Costs)
Advertising .5-1% .

Bad debts .5-1%
Utilities .25-.75%
Donations .1-.2%
Downtime 1%
Downtime with labor burden 1-1.5%
Dues and subscriptions 0.1-0.2%
Medical Insurance for office staff 0-2.5%
Interest and bank charges 0.2-0.4%
Licenses and related bonds 0.1-0.2%
Office equipment, computers, software 0.2-0.4% 
Office supplies 0.2-0.4%
Professional fees 1-1.5%
Cell phones 0.5%-1%
Rent 2.0-4.0% 
Salaries, office staff/officers 10-12% 
Salaries labor burden 12-15% (as a percent of labor)
Small tools/supplies .5-1.0%
Taxes (business asset tax) 0.1%
Training and education 0.2-0.3%
Travel and entertainment 0.3-0.5%
Uniforms and safety equipment 0.2-0.5%
Vehicles, overhead 1.5-2.0% 1.75%
Yard expense and lease-hold improvements 0.1-0.2%
Miscellaneous 0-0.1%

TOTAL INDIRECT COSTS 25% +/-
NET PROFIT MARGIN GOAL 10% (good) 15% (very good) 20% (outstanding)

* Includes insurances, depreciation, repairs, mechanics, etc.