People Are Assets To Your Business

When you look at your financial statements where is payroll listed? Is it under Assets (items that produce) or under Cost of Revenue (direct cost that create revenue) or more often than not, is it located under Overhead?

It costs us, the business owner, to have people work for us. It is often the greatest expense and other than our direct cost of revenue, it usually has the greatest impact. Owners often grumble and complain how they themselves don’t receive fair compensation for their energy and effort and when attempting to adjust their costs, payroll is often the area that is SLASHED first.