Hello, we recently had our in-house bookkeeper leave and discovered that she left our books in quite a mess. We're working through getting everything cleaned up, but it seems that she classified the same types of entries in many different ways, and we want to make sure and clean it up correctly. So to get to my question... in the asphalt paving industry, what is considered COGs, and what should be put in a different category? We typically have the below items on each job:
1. Asphalt (purchased from the manufacturer)
2. Trucking (to get the asphalt from the asphalt plant to the job site)
3. Rental Equipment that is used on the job
4. Subcontractors, which can include laborers that do work outside of our normal scope (i.e grading, excavating, operating machinery that is rented)
5. W2 employees that do the bulk of the labor (non-specialized) on the job.
Any help anyone can provide would be greatly appreciated!