Each project a remodeler takes on is different because each customer has different requirements. Keeping track of all these different costs is a tedious, but vital task. Tracking that data through Job Costing will keep you in business. It is the difference between having a profitable business and sleepless nights
Here are some of the benefits of including Job Costing in your bookkeeping.
1. Job costing helps you think through the
project in a detailed way. It helps you
capture all the potential costs associated with a project. This would include items you may not think
about like your Burden Rate per employee, Overhead Costs and tracking the
amount of time the owner puts into a project.
In turn, this makes your projects truly profitable.
2. Cost reports can be generated from job
costing data. These reports provide
valuable information that can be used in future bidding. By analyzing a project upon completion, you
can improve your estimating system by building a cost history.
3. Job Costing also provides valuable
information during the project. It helps
you stay on track and identify when you might be spending too much. You can’t fix what you don’t measure. It is much easier to investigate and fix an
overage while it is happening, than after the fact.
Accurate estimating is essential to ensuring your remodeling
business is consistently making money.
In order to get that, you need constant feedback. Job Costing provides that feedback.
If you would like to incorporate job costing into your bookkeeping system, I would welcome the opportunity to chat with you about it. You can email me at nikki@glbksolutions or schedule a 15-minute consultation by using this link. https://calendly.com/nikki-105greenleaf/15min
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