Where accounting makes "cents"

  “Should we separate labor and materials on customer invoices?” Short answer: No—at least not if you want to protect your margins, avoid unnecessary disputes, and keep your business running smoothly. 🔹 1. Customers Google everything If you list materials separately, many customers will immediately look up prices at Lowe’s or Home Depot and assume that’s what you pay. But contractors don’t buy like homeowners - You’re sourcing from wholesalers, buying in bulk, choosing quality, considering lead times, availability, delivery fees, and suitability for the job—not whatever is cheapest online. 🔹 2. Your labor rate isn’t your customer’s concern Breaking out labor invites customers to scrutinize an hourly rate without understanding what goes into it—insurance, taxes, downtime, admin work, mobilization, overhead, warranty work, and everything else that keeps your business running. 🔹 3. You’re selling a finished result, not parts and hours At the end of the day, transparency is importan...