Can QuickBooks Calculate Overhead Percentage? | Bizfluent

Can QuickBooks Calculate Overhead Percentage?

Written By
Timothea Xi
Timothea Xi
Jul 27, 2011
1 minute read

The QuickBooks accounting software can help your business calculate what percentage of your total income or total expenses is going toward overhead, provided you classify your expenses correctly.

Classify Expenses

To arrive at an overhead percentage in QuickBooks, you must first differentiate between various types of expenses, notes business accounting resource Build Your Numbers. Overhead, which includes rent, utilities and administrative costs, is not to be confused with costs directly related to making income, such as the cost of manufacturing products for sale. The former belongs to the "Expenses" account, while the latter should be placed in "Cost of Goods Sold."

Generate Profit/Loss Report

Once accounts have been classified, run a profit and loss report -- also known as a "Statement of Financial Income and Expense" -- in QuickBooks. To see overhead as a percentage of income, click the "Modify Report" window and choose "% of Income." To see overhead as a percentage of total expenses, the QuickBooks website says to click "Customize Report" and add a column for "% of Row" on the Display tab. In the general fund (aka overhead) column, look at the total expense figure. That will be the overhead percentage of total expenses.

Timothea Xi

Timothea Xi has been writing business and finance articles since 2013. She has worked as an alternative investment adviser in Miami, specializing in managed futures. Xi has also worked as a stockbroker in New York City.

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