Contractor Success Map With Randal Dehart | Contractor Bookkeeping And Accounting Services

If you've been a long-time reader or a contracting company owner, you've probably heard about "Cost of Goods Sold" (COGS). But what does it really mean, and why is it crucial for your construction business's success? Understanding COGS isn't just about accounting—it's about making smart decisions for profitability, pricing, and more.    1. What is the Cost of Goods Sold (COGS)?    COGS represents the direct costs of creating the products/services your business sells/provides. These include materials, labor hours, and even manufacturing overheads. Any expense that contributes directly to a product's creation is included in COGS.   COGS provides critical insights into your business's efficiency and profitability. It's a fundamental metric showing how much you spend to produce inventory relative to your sales.     Contractors often ask us if they can buy our Chart of Accounts with Cost of Goods Sold and import them into their QuickBooks Desktop or QuickBooks Online file. The answer is yes! We also offer the c