What Do Landscapers Use to Track Overhead Costs?

If you're not tracking overhead, you're not tracking profit. Many landscaping businesses quote jobs based on labor and materials alone—then wonder why they're barely breaking even at year's end. The overhead (insurance, trucks, equipment, shop rent) has to come from somewhere.

Here's what successful landscaping companies use to make sure every job pays its fair share of overhead costs.

3 Methods Landscapers Use to Track Overhead

*Costs shown in US dollars. Pricing varies by location and plan level.

What Counts as Overhead?

Before you can track overhead, you need to know what to include. Overhead is any cost that can't be directly tied to a specific job:

• Insurance – General liability, workers' comp, vehicle insurance
• Vehicles – Truck payments, fuel, maintenance
• Equipment depreciation – Mowers, trailers, hand tools
• Facility costs – Shop rent, utilities, yard storage
• Administrative – Office supplies, software, phone
• Marketing – Website, advertising, vehicle wraps
• Owner/admin salary – Non-billable time

Note: Tax rates and insurance costs vary significantly by US state and locality.

Worked Example: Calculating Overhead Allocation

Let's walk through a real calculation for a landscaping company with one crew:

Without this calculation, you might quote a 4-hour job at $200 thinking you're making $50/hour. But after overhead, you're actually making $30/hour. That's the difference between profit and just getting by.

Method 1: Job Costing Software

Dedicated job costing software automatically calculates overhead allocation for every quote. You enter your monthly overhead once, and the software distributes it across jobs based on labor hours.

Pros:

• Automatic calculation—no manual math
• See true profit per job instantly
• Catches underpriced jobs before you send the quote
• Tracks trends over time

Cons:

• Monthly cost ($59-150/month in US)
• Learning curve for new software

Method 2: Spreadsheets

Many landscapers start with Excel or Google Sheets. You create formulas to calculate overhead rate and apply it to each job manually.

Pros:

• Free or low cost
• Customizable to your business
• Good for understanding the math

Cons:

• Time-consuming (30-60 min/week)
• Easy to make formula errors
• No automatic updates when overhead changes

Method 3: Accounting Software

QuickBooks, Xero, and similar tools track expenses well but weren't designed for job-level overhead allocation. You can see total overhead, but connecting it to individual jobs requires workarounds.

Pros:

• Already needed for taxes and bookkeeping
• Good expense categorization
• Integrates with banks

Cons:

• Not designed for per-job costing
• Requires manual overhead allocation
• Limited landscaping-specific features

Which Method Should You Choose?

The right choice depends on your job volume:

• Under 5 jobs/month: Start with a spreadsheet to learn the concepts
• 5-15 jobs/month: Consider job costing software—time savings justify the cost
• 15+ jobs/month: Job costing software is essential for accuracy and efficiency

Whatever method you choose, the key is actually doing it. A rough overhead allocation is infinitely better than no allocation at all.