BaseBuilders Knowledge Base
Definitions - the terms we throw around
Every firm has overhead costs that need to be allocated to its projects. This is accomplished with an overhead factor.
Your overhead factor is a ratio between your direct labor and your overhead costs, where your direct labor is labor associated with the production of your work, as opposed to other activities like marketing, accounting, office administration, holidays, and paid time off.
You must separate your payroll costs between direct and indirect in your accounting software. This is the only way to obtain this factor. Here is an illustration of how to calculate your overhead factor.
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Calculating Your Overhead Factor
Your overhead factor is a key value if you want to know your true project costs.
Time and Labor Settings
Under this section is where you will setup your pay periods, overtime and overhead factors, and activities. Click your name/avatar at the bottom of the main navigation panel to open settings.
