Entering personnel or regular labor

Regular personnel, also known as Indirect Labor, are members of your team whose salaries are part of your business's overhead expenses rather than directly tied to producing or delivering what you sell.

Upmetrics gives you two ways to set up regular labor. You can describe your workforce and let Finance AI draft the teams and roles for you, or you can create them manually.

TIP: To understand the difference between direct and indirect labor, refer to this support guide.

Adding Regular Labor

Creating Regular Labor with Finance AI

1

Go to the Finance Forecasting module, select the Forecast tab, and open the Personnel section.

You will see a guided setup asking Who does the work?

2

Enter a short description of your regular or indirect labor employees.

You can include details such as job roles, number of employees, expected salaries, benefits, and that these roles are part of your general business overhead.

Once you have entered the details, click Draft my team.

TIP: Include the main roles, expected headcount, salary, and benefits where possible. This helps Finance AI create a more relevant starting point for your personnel forecast.

3

Finance AI will create suggested teams and roles based on the information you entered.

Review the proposed roles, employee counts, salaries, benefits, and labor classification.

You can click the Edit icon beside any role to make changes before adding it.

Once the suggestions look correct, keep the required roles selected and click Add these roles.

NOTE: The suggested figures are only a starting point. Review the employee counts, salaries, benefits, and labor classification to make sure they match your actual business expectations.

4

The selected teams and personnel roles will be added to your forecast.

From the Personnel section, you can review each role and update its assumptions whenever required.

Regular labor roles should appear with Indirect Labor under the Cost Type column.

Creating Regular Labor Manually

1

If you do not want Finance AI to draft your personnel roles, click I'd rather set it up myself from the Personnel setup screen.

2

In the Set up your teams window, enter a name for the personnel team and at least one role within that team.

You can click Add another role to add more positions to the same team or Add a team to create another personnel group.

When you are ready, click Create these.

3

Upmetrics will create the team and personnel role in your forecast.

Locate the newly created role under the Personnel section and select Indirect Labor from the Cost Type dropdown.

NOTE: Selecting Indirect Labor ensures that the personnel cost is treated as an overhead personnel expense rather than a direct cost of sales.

4

Click the three-dot menu beside the personnel role and select Edit.

The personnel assumption form will open, allowing you to enter the detailed payroll assumptions for the role.

5

Select whether you are adding an Individual Employee or a Group of Employees.

If you select an individual employee, enter the applicable employee details.

If you select a Group of Employees, enter the number of full-time equivalents (FTEs) you expect to employ.

6

Choose whether the employee or group will be paid a Constant Amount or a varying amount over time.

If you choose Constant Amount, enter the salary you expect to pay per month or per year.

NOTE: For a group of employees, enter the salary you expect to pay one full-time employee. Upmetrics will multiply this amount by the total number of employees in the group.

If applicable, enter the expected salary increase and indicate whether the raise occurs monthly or annually.

If you choose Varying Amounts Over Time, enter the salary for a single full-time employee in the applicable forecast periods.

If you are forecasting a group of employees, Upmetrics will multiply the amount by the total number of employees in that group.

7

Indicate whether the personnel are On-staff Employees or Contract Workers.

For on-staff employees, enter the applicable tax and benefits percentage, also known as the Burden Rate.

NOTE: The tax and benefits percentage applies only to on-staff employees and does not apply to contract workers.

8

Time Duration: Select when the employee or group will start working and, if applicable, when their employment will end.

Review the personnel assumptions and click Save.

Once saved, the personnel role will be included in your forecast as regular or indirect labor. You can return to the Personnel section whenever you need to update employee counts, salaries, benefits, employment dates, or cost classification.

TIP: Moving finance items from one group to another is hassle-free. For a detailed walkthrough, check out our help guide here.

Where does this entry appear in the financial statements?

Regular personnel expenses are reflected in the applicable payroll expense lines in the Profit & Loss report and are also included in the Cash Flow statement.

In the Cash Flow statement, these personnel expenses are reflected under the applicable Salary & Wages lines.