Job cost accounting is used when your business incurs expenses by a specific job that can be tracked with advanced reporting at the click of a button. QuickBooks job cost reports show expenses by the job and will allow you to provide detailed price estimates on future projects based on the history of previous products constructed or service provided and allowing near real time tracking of a current job’s budgeted costs for real time management adjustments to keep the project on or under budget.
It is essential that all businesses track overhead and expenses accurately so you can not only win accurately priced projects, but also generate a reasonable profit in order to sustain and grow your business.
When job cost accounting is employed, expenses by job will be reported. Material costs, labor hours, mileage cost, and type of equipment used are likely to vary and must be entered properly. For example, a 10,000 square foot home would cost more a roofer to replace versus a 1500 square foot home and knowing your actual cost per square foot and the possible variances between job size is essential for future bidding opportunities and profitability.
Some factors could lower costs and make a business more competitive in price or improve its bottom line. Example, if your roofing company is performing a job in a specific neighborhood. While in that area, it makes sense to offer a free estimate to other homes in the neighborhood since your potential expenses may be lower.
Identifying and reporting your expenses by customer, job, a product line, or a company division will help you manage and grow your business.
We can help you structure your QuickBooks Enterprise Solutions file for true job cost accounting and train your staff so you can start increasing your bottom line.