Indirect rates: assigning pools to accounts

How WiseCost calculates your fringe, overhead, and G&A rates.

Your indirect rates depend on how your accounts are grouped into cost pools. In WiseCost:

1. Assign each account to a pool. Go to Accounts and classify your QuickBooks accounts as Direct, Fringe, Overhead, G&A, or Unallowable.
2. WiseCost calculates the rates. Each indirect pool is divided by its allocation base. Because every hour is tracked in WiseCost, your labor base comes from actuals, not estimates.
3. Rates flow into your reports. The calculated rates burden your P&L by Class, which is how you see true cost per contract.

Getting pool assignments right is the foundation of defensible rates. If you're unsure how to classify an account, your CPA is the right person to ask, and the same expense can belong to different pools depending on your structure.