Income Statement Margins Worksheet

  1. The target margin percentages for Direct Costs (or Cost of Goods Sold – COGS) and Overhead are defaulted.  Adjust any of the target margin percentages to match your business model.
  2. Enter the information requested in the “Actual $” column.  This information is found on the latest Income Statement for your company.
  3. Check the resulting calculations shown in the “Actual %” column against the “Target %” column to determine where the variances are.
  1. Check your accounting Chart of Accounts to ensure that all direct costs (expenditures that can be related to a specific project) and all project-related indirect costs (supervisor, utilities, etc.) are included in the Direct Costs (or Cost of Goods Sold – COGS) section of the statement.
  2. If you are tracking job costs, you can analyze one project or a group of projects to determine if they are meeting your target numbers. 
  3. You might want to analyze:
    • all projects estimated by one estimator;
    • all projects run by one site supervisor;
    • or any other performance metrics you would like to see.