What is the Overhead Allocation Worksheet?
The Overhead Allocation Worksheet is a G/L tool that calculates each client’s share of the shop’s overhead expenses. It works by taking the period’s salary expense (which you’ll enter for each staff member) and the month’s overhead hours from time cards and time sheets. The worksheet can distribute overhead expenses based on one of four formulas (see below), depending on how you want to allocate overhead to clients. When using the worksheet, you’ll first choose an overhead allocation method (they’re described in detail below). Each of these four methods is listed by the AAAA in their “Guide to Individual Client Profitability.” After choosing the allocation method, the worksheet will a all staffers that have billable hours for the selected period. You’ll then be prompted to enter the individuals monthly labor costs (i.e., salary, bonuses, benefits, etc.). After you’ve added in everyone, Clients & Profits calculates the amount of salary which should be allocated to each client and the re
