What types of expenses do you put in Gross Profit?

Ah the classic “what actually counts as gross profit” crisis 😅

Keep it simple: if it touches the job, it’s COGS. If it just keeps the lights on, it’s overhead.

Goes in GP:

• Tech labor + worker’s comp
• Mileage to jobs
• Sales commissions
• Field runner (if they’re supporting jobs)
• Ops manager only when they’re in the field

Does NOT:

• Office repairs
• Admin/management time

If you start blurring that line, your “gross profit” turns into a feel-good number instead of a real one and tying comp to that gets messy fast.