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@rodm89 They are often used interchangeably due to the fact that they communicate similar things for different businesses. I did not communicate that well so thank you for the note. I wasn't thinking specifically about the tax line item. The EIDL calculation was poorly thought out IMO using...

@applevai I think you are right but its ultimately a pretty BS metric. If I have a service company that has 10% materials and 90% labor, and have to claim both as COGS, why would a service-only company get to claim $0 just because they don't sell materials?

@waltah Sorry meant to say sales labor is an expense.

@waltah Sales labor is an expense. So are COGS or that matter. Sales wouldn't expand linearly with goods so it wouldnt be COGS. It would generally be part of overhead of Cost of Sales/Revenue.

@transcendentallyblessed This is a problem with using COGS as a metric for the SBA application. Its not a GAAP term. Gross margin would have been a lot better but its more complicated. If I were him and there was a toss up on direct vs. indirect, I would choose the defensible calculation that...

@blessedsingle In a pure services company it could be Cost of Services or Cost of Revenue which could be used as part of a gross margin calculation. If I had strictly service companies, I would have used the CoS/CoR where COGS were. In theory, having no COGS would give you the biggest loan but...

@prodigal_son1111 No triggering. We have an accountant in our office and a separate CPA for the bigger stuff. Our CPA says that stuff like labor for drafting/design is considered direct labor and COGS. Our old one did not. I'm not saying ignore your CPA's advice. I'm more trying to give an...

@prodigal_son1111 Of course! And I bet you didn't have a negative gross margin on your application either.

@janblessed If it is really that even and consistent, maybe all, maybe none, maybe half. I agree that the numbers are less "clear" than in a bigger company but its certainly doable. In your case, an idea would be to take the labor costs of all labor hours that were billed. For instance, you...

This is not directly EIDL/PPP related but I wanted to at least provide some useful information for folks. I've seen some bizarre ratios for Rev/COGS which leads me to believe that people don't fully understand how to calculate it. I also was not sure intending for this to be tax based...

@johnford If employees are only here for the money, there is easier work to do out there. We are continually developing a company culture and a purpose that helps align everyone and give them a reason to come to work. I don't need "warm bodies" as employees. If they train quickly and become a...

@orlando_wcbc We start at $16/hr anyway so no real change that I can anticipate. If anything it will help since we have been operating at a 30% higher than average labor cost for years. We live in a decently high CoL area so as a company we've pledged to keep them at a comfortable income level...