Operating a profitable business means knowing how much it costs to complete a project. With prices going up, it’s especially important to review costs now. That’s where job costing comes in.
What is job costing?
Job costing is a detailed method of tracking costs and revenue associated with a project. It’s the process of totaling the cost of materials, labor – and overhead used in order to understand the cost, profits – and perhaps loss of any given job.
What are the goals of job costing?
- Evaluate and establish the overall cost and profitability of a job.
- Analyze how accurately you manage estimates.
- Uncover inefficiencies and excess costs.
- Determine how long it takes staff to complete a project in order to schedule efficiently.
- Identify trends in order to project which jobs will earn a profit and which won’t.
Who uses job costing?
Job costing is gaining traction in a variety of industries, and for a good reason. From construction to advertising agencies to transportation providers, all businesses that provide products and services to clients benefit from job costing. After all, whether you’re an ad agency charging a client a retainer or a construction company trying to keep a project on a budget, having a process that helps you establish a profit and track expenses is the best way to guarantee success.
As the saying goes, “time is money.” So, let Boris Benic and Associates design a job costing process that allows you to save on both.