Operating Expenses Columbia SC

As we approach the end of this year it is a good time to begin development of your budget for next year. In developing your budget, take time to challenge your operating expenses in Columbia.
Bank of America - Richland Mall
803.765.4940
2095 Beltline Blvd
Columbia, SC
Bank of America - Plaza
803.255.7555
1901 Main Street
Columbia, SC
Wells Fargo - Columbia Main
803-251-4400
1441 Main St
Columbia, SC
Wells Fargo - Richland Mall
803-782-3035
3500 Forest Dr
Columbia, SC
Bank of America - Five Points
803.765.8335
2111 Devine Street
Columbia, SC
Wells Fargo - Assembly Street
803-253-6753
930 Assembly St
Columbia, SC
Bank of America - Tower
803.929.5671
1301 Gervais Street
Columbia, SC
Bank of America - Eau Claire
803.931.3183
2805 North Main Street
Columbia, SC
Bank of America - Millwood-Devine
803.931.3190
3336 Millwood Avenue
Columbia, SC
Wells Fargo - Columbia Five Points
803-253-6734
705 Saluda Ave
Columbia, SC

Operating Expenses

Source: CUSTOM HOME Magazine
Publication date: November 1, 2005

By Steve Maltzman, CPA

As we approach the end of this year it is a good time to begin development of your budget for next year. In developing your budget, take time to challenge your operating expenses.

I recommend breaking your operating expenses into four major categories: indirect costs, sales and marketing, finance, and general and administrative expenses. Following are some tips on controlling these expenses:

Indirect construction costs. Indirect costs represent those costs related to construction that cannot be specifically identified with a particular job. Items within the indirect cost category include wages and benefits of your superintendents, estimator, designer, purchasing manager, and laborers, as well as costs of operating construction vehicles, warranties, and small tools purchases.

  • Challenge the use of your laborer. Many custom builders will have a laborer on their jobs performing tasks such as cleanup. Is your laborer doing work for your sub?
  • Consider implementing an inventive compensation program for your superintendent and other field personnel that is tied to productivity. Especially when times are tight you are better off having employees with low base salaries earn additional pay by achieving and exceeding goals and objectives. Make sure the incentive plan you implement is measurable and the activities measured by the plan are under the control of the employee.

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