[taydiggs]

How do I calculate cost of goods sold in the staffing industry?

[Just Looking]

Since you are dealing with services, not goods, it is called either the Cost of Sales or Cost of Services Rendered. These costs should be the items that are directly related to the jobs that generate revenue. They would include the staffs' wages, benefits, travel expenses for the staff, etc. Think of it as the cost to provide services for a specific job/service.

On the other hand, you'll also have overhead. These would be items such as wages for the people in the office (as opposed to the wages paid to the staff doing the temp assignments), rent for your offices, utilities for your offices, depreciaton, etc. In other words, this would be the general expenses of running your business.

Some expenses will depend on your business. If you do advertising for a specific job, that will be a direct cost. If you do a general advertisement for your business, that will be overhead. It's also possible you do both.

I'm not sure what you are trying to do here, but please ask if you have any more questions. I will only be around for a few more hours and then I'm gone for 10 days, but hopefully someone else will guide you.

[taydiggs]

Thank You Just Looking for your response. I am working on a feasibility study and needed help calculating the cost of sales,services rendered. Can you provide me a step by step example of how it would look on paper? I will be doing advertising for Light industrial jobs and temporary Commercial Drivers License placement. What other kinds of costs are associated with temporary staffing? How would you calculate depreciation in the staffing Industry? What is the best kind of software to use, and how much should I spend on it? Do you know of any bonus program ideas I can use to pay for sales, recruiters etc.. (pay for performance) I look forward to your response!