N95-face-maskAnterra is helping clients determine the best practice to track the cost of the COVID-19 outbreak. There are several reasons you want to isolate these costs (no pun intended).

  1. If you apply for government relief program you can easily identify costs.
  2. If you apply for loan forgiveness you have backup information.
  3. You are ready for an audit if you get program money.
  4. You can report on your net income excluding the direct costs, then show COVID-19 costs as an adjustment to net income for your board/bank/owners.
  5. You can measure the cost impact objectively, the revenue and gross margin impacts are more subjective.

Methods to track COVID-19 costs

  1. Set up a COVID-19 job in Job Cost. You can set up one-time cost codes for:
    1. Management time
    2. Meeting time
    3. Turn away time – record staff time that are unable to work on a job site due to closure or if a service technician goes to inspect / repair a customer location and it is closed
    4. COVID-19 Idle time – staff unable to work
    5. Doctor / hospital appointments
    6. COVID-19 testing time
    7. Paid sick time
    8. Protective gear
    9. Facility cleaning
    10. Facility cleaning supplies
    11. Other COVID-19 Costs
  2. Set up GL Accounts for COVID-19 Expenses.GL accounts can be used for direct and indirect costs associated with the virus and lockdown
    1. Salary Idle time (if not job costed in 1d above)
    2. Office / warehouse rent for idle facilities
    3. Health insurance costs for furloughed employees
    4. Other benefit costs

Please let us know if we can help you with improved reporting, we will continue to send out best practice updates based on what we are seeing in our broad base of customers.

See our AR Collection Management Tool at /arcollectionmgmt

Related content:

Best Practices Guides