labor costs question

do you include the managers salary when figuring labor costs. Manager is part owner.

If they are working hours that you would otherwise have to pay hourly for, you should consider his salary. Do not consider any part of their profit sharing as owner. Not an accountant, but just how I would do it.

Ultimately you do. However, I take the same approach in my store as DFW. I only look at my crew labor % and I keep myself backed out of the equation . By doing so I feel I’ve got a better grasp on how the effieciency is in my store.

With that said… your P&L’s must show managerial salaries. My P&L’s have the following line items:

Crew Labor
Manager Salary

This is where I show my pay. You’ve got to account for it somewhere.

Hope this helps. -J_r0kk

Everything comes out of the bottomline in the end, so yeah count their salary.

I do the exact same thing j_r0kk does. I show all crews salaries, my managers salary, and then mine.

This way WHEN I go to sell this place and buy something else, the buyer can see just how much the real cash flow is as well as what it can be if he decided he wants to work 90 hours a week and fire the manager.