How can I effectively track indirect costs in my business?

How can I effectively track indirect costs in my business?

Tracking indirect costs involves identifying all expenses that aren't directly tied to a specific project. Start by categorizing your costs into fixed and variable.

What are some common examples of indirect costs?

Common examples include utilities, rent, administrative salaries, and office supplies. These costs support overall operations but aren't linked to a specific product.

How can I allocate these costs to different projects?

You can use methods like activity-based costing or a simple percentage allocation based on direct costs to distribute indirect costs across projects.

Are there any tools that can help with tracking these costs?

Yes, tools like QuickBooks, Xero, or specialized project management software can help you track and allocate indirect costs effectively.