Billable Expenses Markup - Not Calculating Sales Amount Properly

Markup should be calculated as a percentage, not as a fixed dollar amount, Sierra.

The total amount billed to the customer is based on the worker’s total labor cost plus your company’s 45% markup.

To determine the worker’s total labor cost, multiply the number of hours worked by the employee’s hourly wage. For example, if your employee is paid $19 per hour and works for 6 hours, then the total labor cost is $114. This amount represents the base cost for the worker’s time.

Example: $19.00 × 6 hours = $114.00 (the base labor cost).

Next, calculate the markup by applying forty-five per cent to the total labor cost. In this example, forty-five per cent of one hundred fourteen dollars equals fifty-one dollars and thirty cents.

Example: $114.00 × 45% = $51.30 (the markup amount).

Finally, add the labor cost and the markup together to find the total amount you will bill the customer. So, one hundred fourteen dollars plus fifty-one dollars and thirty cents equals one hundred sixty-five dollars and thirty cents.

Example: $114.00 + $51.30 = $165.30

If you want to improve your experience using QuickBooks, our QuickBooks Live Expert Assisted team is available to help. We offer support for a wide range of business tasks, ensuring you receive the guidance you need.

Please feel free to contact us if you have any further questions.