Count the whole job
Record material used, including realistic waste, consumables, hands-on labor, setup, outside services, packing, delivery and payment fees. Include an allowance for shared shop costs such as rent and maintenance. Avoid counting the same cost in both a shop rate and a separate line.
Track paid time separately from hours that can be charged to jobs. A worker's hourly wage is not the whole cost of employing them, and the hourly amount you charge a customer is not the employee's wage.
Check the result against the estimate
Compare the same cost categories at quote stage and after delivery. Include your own working time in an owner-operated shop. Write a reason for the biggest difference: extra sanding, rejected stock, a design change or an optimistic setup estimate.
For a planning example, a $1,000 sale with $700 of fully included costs leaves $300 before income tax. That is a 30% margin on the sale. Adding 30% to $700 produces $910, leaving $210, or about 23.1% of the sale. Neither figure is a recommended price.
Look ahead at cash commitments
Make a short weekly forecast of expected receipts and payments. Include materials, payroll, rent, loan payments, tax payments and the costs of finishing work already sold. Note when receipts are uncertain.
A customer deposit improves today's bank balance but the job still needs to be completed. Keep enough cash available for the remaining obligations. Ask your bookkeeper how deposits and purchases should be recorded for your business; the timing of cash and taxable income is not always the same.
Illustrative shop example
A profitable order can still create a cash gap
An illustrative job brings a $400 deposit now, needs $550 of materials this week and pays its final $600 next month. Materials alone create a $150 gap this week, before labor or overhead. Plan that gap before committing.
Try this in your shop
- Record the complete estimate before starting.
- Capture actual time and material as work happens.
- Separate cash received from profit earned.
- Review upcoming bills and expected receipts weekly.
- Update the next quote using what the finished job taught you.
Sources & next steps
Government and university references support the topics discussed. Suggested workflows, examples and checklists are WoodWorkCalc editorial guidance. References reviewed October 19, 2026; confirm current rules before making tax or employment decisions.