We are looking to see where most people track vacation and holiday pay for field and shop employees. On a regular basis, these employees charge their time to jobs and thus are included in gross margin. When they take vacation and holiday and receive pay, those costs are charged below the line to an overhead account. This causes fluctuations in overhead costs on a monthly basis and so we are looking at moving this above the line.
I am curious to know how most companies are charging these expenses. Are you charging to jobs through a percentage accrual, charging to an account that falls above the line but not to a specific job or is this being charged to an overhead account?
Appreciate any feedback!
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Andi Kirkpatrick CPA
Chief Financial Officer
Trade Construction Company
Zachary LA
(225) 654-7741
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