True Costs of Labor


Often, when we were little kids we were told to focus. In volleyball I was always told to focus on the ball, don’t lose sight of the ball. Up to now my focus has been on accounting processes and procedures; the decisions you make have a direct effect on not only the information you receive on your financial statements but also how your accounting practices are performed.

Due to requests from our clients I am going to pivot and focus on Burdened Labor Costing. If you have not heard Applied Management Group has created the Apex eSuite Burdened Labor Costing SaaS. The Apex eSuite provides businesses with their Burdened Labor Costing for each individual direct labor employee.

There are a multitude of reasons why we created this program with the most obvious being able to provide our clients and others with their Burdened Labor Costs. But the second was to eliminate businesses from having to spend hours upon hours trying to navigate their way through convoluted spreadsheets. Your time is valuable, as you will find when calculating your Burdened Labor Cost, you do not want to spend it constantly trying to traverse spreadsheets.

Burdened Labor Costing

The Apex eSuite tracks all noteworthy direct labor costs in detail. Burdened Labor Costing is the sum of your direct labor costs including but not limited to payroll taxes, worker’s comp, benefits, vehicle (if applicable) and an adjusted percentage of your indirect labor and overhead costs associated with a specific department. Burdened Labor Costing SaaS then gives you a report on these specific costs that tie directly to each direct employee and their Burdened Labor Cost.

Or as stated in our blog Costs and Effects of Labor – simply put the sum of the costs associated with an employee and their vehicle (if applicable) per hour. Or even more simply put – what does that employee cost you every hour of every day?

Your Burdened Labor Costs is a management number to base management decisions off of to create profitability and growth within the departments of your business.

Utilizing Burdened Labor Costing (BLC)

How do you know if you don’t know?

How do you know how to price – if you don’t know your BLC?

How do you know how to job cost – if you don’t know your BLC?

How do you know how to bid – if you don’t know your BLC?

How do you know your labor efficiencies – if you don’t know your BLC?

How do you know your labor profitability – if you don’t know your BLC?

How do you know if your direct labor employees are paying for themselves every hour of every day – if you don’t know your BLC?

How do you know if you don’t know?

When you know your BLC you have the knowledge and the power to make informed management decisions in regards to the profitability and usage of your labor force. As I’m sure you know I could continue on with the list of questions but I think you get the idea.

BLC is something that should be updated on a regular basis; it is not something that should be done once a year. Changes are constantly happening with your business, those changes should be reflected in your direct labor employees financial responsibilities, hence their BLC.

Have you ever wanted to see what it would cost you to give your employee a raise? Or play “what if” scenarios – change their benefits, buy a new vehicle, hire a new indirect employee, buy a new building, hire a new direct employee….this program gives you the ability to play with those scenarios before embarking on the costs.

All of my blogs have been based on knowing your numbers – being responsible for your numbers. This blog isn’t any different. You need to know your BLC numbers to make your direct employees profitable. Be in the know – sign up TODAY for your 14 DAY RISK FREE TRIAL of the Apex eSuite Burdened Labor Costing SaaS create an account at

Applied Management Group is here to guide you throughout your Burdened Labor Costing process. Know that the numbers you receive are based on your numbers and are up to date with the information you enter. Now is the time for you to take control, the Apex eSuite ( gives you take control.

The SmallBizRising Blog is designed to be an educational content hub pulling information, best practices and practical advice for the small business owner and features topics including accountingmarketingtechnology and more.  Be sure to subscribe to stay up to date with new content as it is posted.  The blog was created by The Neat Company and receives contributed content from a group of contributing companies that provide technology, services and solutions to small businesses.

This article presented by:
Applied Management Group
Applied Management Group provides mentoring and training along with being retail labor pricing experts. Apex eSuite SaaS provides a web and mobile solution for labor pricing.
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